Your 30s and 40s can bring big life decisions like starting a family or buying a home. As you make these decisions, make sure your super is on track and you’re covered for all that you need to be.
Tip 1: Save on tax by making extra contributions
By law your employer is generally required to put 9.5% of your salary into your super account. If you choose to make extra pre-tax super contributions (for example salary sacrifice contributions) you may save tax.
Pre-tax contributions into your super are, for most people, taxed at a rate of 15%, which may be less than your marginal tax rate.
Tip 2: Review insurance options
If your family situation changes you may find you want to increase your level of insurance cover.
Most super funds offer death cover, total and permanent disability cover and income protection for their members, paid out of the money in their super account.
Getting insurance through your super can be a cost effective way to get coverage if you think this is something you need.
It’s important to read through the product disclosure statement closely so you know exactly what you’re getting as coverage through your super may be limited, slower to pay and end earlier than other insurance providers.
Tip 3: Consider a binding/non-lapsing nomination
A binding or non-lapsing death benefit nomination instructs your super fund which of your eligible beneficiaries to pay your death benefit to if you die.
Consider setting one up and also make sure you keep it up to date if your circumstances change.
Tip 4: Consider making contributions into your spouse’s super account
Depending on your circumstances, there can be some tax benefits to making contributions into your spouse’s super account. Look into whether this will work for you.