Contribution strategies, Super fund performance, Top funds, Year in review, Retirement Income Covenant, Planning for retirement
Highlights of the July 2022 edition of the SuperGuide Premium newsletter include:
- HOW TO BOOST YOUR SUPER: If your super is looking a bit anaemic, these strategies could help it recover.
- SHORT TERM-PAIN, LONG-TERM GAIN: The 2022 financial year was tough for super funds, but the long-term picture is brighter.
- TOP 10 FUNDS: Despite the turmoil on global markets, some funds kept their head above water.
- YEAR IN REVIEW / PREVIEW: Volatile markets challenged investors in 2021-22, and it’s not over yet.
- THE RETIREMENT INCOME COVENANT AND YOU: From 1 July funds must display their retirement income strategy, but you may have to search for it.
- YOUR RETIREMENT QUESTIONS ANSWERED: If you’re approaching 55, 60 or 65 and planning to retire, this is what you need to consider.
SUPER FUNDS
Super fund performance over 32 financial years (to June 2024)
Super funds surmounted a wall of worries in 2023 to post a return of almost 10%, thanks to buoyant global share markets.
The big picture: Focus on super’s long-term returns
They say a picture is worth a thousand words, so we’ve created a visual representation of super’s value in the long run.
Super fund performance: Monthly returns to June 2024
There were some nail-biting moments along the way, but super funds put a smile on the dial of members in latest financial year with impressive returns for all risk categories.
What are lifecycle super funds, and how do they perform?
Lifecycle funds are designed to reduce risk as you near retirement without sacrificing returns; recent research shows many do just that but you need to know what to look for.
Best performing super funds: Growth category (61–80%)
The difference between holding your super savings in a leading fund compared to a lemon can make a big difference to your retirement outcome, so it pays to keep an eye on which funds perform well consistently over the long term as well as the past year.
Top 10 Balanced super funds ranked by risk and return
While super funds with the highest annual returns capture headlines, some funds and their members place a premium on balancing rewards with a focus on consistency.
HOW SUPER WORKS
Super news for July 2022
Retirement Income Covenant goes live, Super fund average performance drops, Deeming rates frozen, YFYS performance test to be reviewed, SMSF numbers continue to increase.
In your teens? The super rules that apply to you
Your first job can be exciting, but it’s important to remember your weekly pay could come with super contributions, so here’s the rules applying in your teens.
In your 50s or younger? The super rules that apply to you
When you reach your 50s, it’s time to get serious about your super, so here’s the key super rules for your age group.
In your 60s? The super rules that apply to you
When you reach your 60s, the rules around making contributions and withdrawals from super start to change, so it’s important to know what’s what.
In your 70s? The super rules that apply to you
If you’re still adding to your retirement savings in your 70s, it’s important to know the super rules, as making contributions becomes tougher after age 75.
SuperGuide webinar: Downsizer contributions
Thursday 28 July 2022 at 11.00am (AEST)
In this exclusive webinar super expert Garth McNally will detail what you need to know to get the best outcomes with Downsizer contributions, including how the eligibility rules work, and timing, Centrelink and strategy considerations.
SUPER CONTRIBUTIONS STRATEGIES
Downsizer super contributions: Rules and eligibility
Eligible downsizer contributions can be a great way to boost your super without falling foul of many of the rules affecting other super contributions.
How the First Home Super Saver Scheme (FHSSS) works
If you are looking for ways to save a bigger first home deposit, changes on the horizon promise to remove hurdles to the FHSSS and make the scheme simpler to use.
How to boost your spouse’s balance and make the most of super caps
Couples who plan together succeed together. Learn how paying attention to your spouse’s super could maximise your opportunities.
Salary sacrifice and super: How does it work?
Salary sacrifice can be a convenient and simple way to boost your super and reduce your tax bill at the same time. Learn how to get it right and the alternative to consider.
A super guide to the bring-forward rule
Using the bring-forward rule is a great way to put a larger contribution into your super account in a single year. Here’s what you need to know about the rules.
What are the current work test rules for super contributions?
The rules for making super contributions after age 67 have been relaxed substantially, but you must still meet a work test for one type of contribution.
Quiz: Boosting your super with super contributions
Take the following 10-question quiz to test your knowledge on boosting your super with superannuation contributions.
SMSFs
2021-22 Year in Review: Volatility reigns
Investors climbed a wall of worries in the closing months of the financial year, from rising inflation and interest rates to fears of recession.
SMSF trust deed health check for 2022–23
As your circumstances or the regulatory environment changes, your trust deed may also need updating.
How do SMSFs invest?
SMSFs are often taken to task for relying too heavily on cash and Australian shares, but the picture is more nuanced if you scratch below the surface.
Should you develop a retirement income strategy for your SMSF?
The new retirement income covenant effective from 1 July doesn’t apply to SMSFs, but that doesn’t mean trustees can’t learn from it.
RETIREMENT PLANNING
What the new Retirement Income Covenant means for you
From 1 July, super funds are required to provide a retirement income strategy to members, but you may need to search for it.
Planning to retire before turning 60? What you need to consider
If you want to retire early you will need sources of income other than super now that the super preservation age has increased to age 60.
Planning to retire at 60? What you need to consider
Once you turn 60 it is easier to access your super provided certain conditions are met.
Planning to retire at 65? What you need to consider
While the Age Pension age has crept up to 67, the average age of retirement in Australia is closer to 65. Filling the income gap with super will require careful planning.
How the Home Equity Access Scheme works (formerly Pension Loan Scheme)
The Home Equity Access Scheme can be a great way to boost your retirement income by taking a loan from the government against the equity in your home.