Thomas Noad* says it’s easy to let our superannuation slip to the back of our minds but as we near retirement we should start thinking about making the most of what we’ve got.
If you work in the public sector and are a member of a public sector superannuation scheme you’re likely to have good prospects for a comfortable retirement.
However, these schemes have complex rules.
And unless you’re an expert, it can be easy to miss opportunities to maximise the benefit you’ll receive when you retire.
Getting your contributions right should be a priority. Why?
In simple terms, an increase in your contributions gives you the ability to increase the benefits you will receive when you exit your scheme.
However, many members don’t realise they have the option to make additional contributions or they’re not aware that they’re currently not contributing at the right level.
Getting your contributions right doesn’t just have an impact on your retirement.
In many cases your contribution level will also impact the end benefit you will receive if you leave your employer before retirement age and you have a deferred benefit.
There are limits applied by your scheme and by the Government that impact on the level of contributions you can make each year.
It’s important to be aware of the limits that apply to you because any contributions you make in excess of the limits will be subject to additional tax.
With the right planning, retirement can be something to look forward to rather than worry about and making the most of your scheme is a great place to start.
These 5 questions will help you make sure you’ve got the fundamentals covered:
* What should I be doing with my contributions?
* Should I maximise my contributions or pay off my mortgage?
* How is my benefit calculated?
* What happens when I leave my employer or retire?
* Should I take a pension or a lump sum when I retire?
If you’re not sure about some answers to these questions it could be time to speak to an expert.
At StatePlus we specialise in public sector superannuation schemes. So we can cut through the complexity of your scheme and give you clear answers about how to best secure your future.
Take the next step
With the right help, planning for your retirement is easier than you think. For more expert tips, visit the StatePlus website at this PS News link.
* Thomas Noad is a registered financial adviser with StatePlus and can be contacted at [email protected].
StatePlus, formerly State Super Financial Services, is one of Australia’s leading providers of financial planning. Since 1990, our retirement experts have provided life changing financial advice to public sector employees and their families. With a StatePlus planner by your side, you can feel confident about reaching your financial goals to live the retirement you really want.
This article was published on 9 October. The information in this article is current at the time of writing the article. This is general information only and does not take into account your personal objectives, financial situation or needs. It is important to seek financial and taxation advice that takes into account your personal objectives, financial situation and needs before making any decisions based on this information.
