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Super tips for your 30s and 40s

Super tips for your 30s and 40s

Superannuation isn't something you should set and forget.

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.  

See more information from the Australian Government on contribution caps and thresholds.

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.

Remember, before you make a decision about your super, you should compare the costs, fees, risks and benefits of super funds. It makes sense to consider whether you can replace any insurance cover you may lose when you bring your accounts together, as well as any costs for withdrawing from other super funds and any investment or tax implications. This article is intended to provide general information only and does not take into account your individual objectives, financial situation or needs. Taxation considerations are general and based on present taxation laws and may be subject to change. You should seek independent, professional tax advice before making any decision based on this information. The Commonwealth Bank is also not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and you should seek tax advice from a registered tax agent or a registered tax (financial) adviser if you intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law. Colonial First State Investments Limited ABN 98 002 348 352, AFS Licence 232468 (Colonial First State) is the Trustee of Commonwealth Essential Super ABN 56 601 925 435 (Fund) and the issuer of interests in Essential Super which is a product of the Fund. A Product Disclosure Statement (PDS) for Essential Super is available in branch, from commbank.com.au/super or by calling 13 4074. You should read the PDS and assess whether the information is appropriate for you before making an investment decision. Colonial First State is a wholly owned subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124 (‘the Bank’). The Bank provides certain distribution and administrative services to the Trustee. The Bank and its subsidiaries do not guarantee the performance of Essential Super. Information in this article is up to date as at the date of publication.