Super tips for your 40s

You may still have multiple super accounts from different jobs. It’s a good idea to consider bringing them all together to keep track of your super easier and avoid paying multiple account fees which erodes your balance.¹

To search and consolidate your super visit MyGov.

If your employer is making employer contributions to another superannuation fund and you would like them to make the contributions into Essential Super, share your super account details with your employer simply by logging onto the CommBank app or NetBank > select Essential Super > Tell your employer.

By law, your employer is generally required to pay 11% of your salary into your super account. However, you can choose to make voluntary contributions to help grow your super.³

• Salary sacrifice: You can set up an arrangement with your employer to have part of your before-tax income paid straight into your super account. Your employer is generally required to pay your 11% super guarantee on your earnings. This is regardless of how much you salary sacrifice. Putting in a little extra each week can make a big difference over the long term.  
  
  The extra amounts contributed to your super are taxed at 15%, as opposed to your take home salary which may be taxed at up to 47% if you are a mid to high income earner. Salary sacrifice may reduce your taxable income, which may mean less tax withheld from your take home pay. For details, refer to the Moneysmart website.

• Personal contributions: Personal contributions can also boost your super – and if you’re eligible, you might be able to claim a tax deduction. When you claim a tax deduction on personal contributions, they’re before-tax (concessional) contributions. If you don't claim a tax deduction, they’re after-tax (non-concessional) contributions. You will need to supply a notice of intent to your super fund in order to make a concessional contribution and claim tax benefits.
  
  If you are a low income earner, the Government may also make a co-contribution for contributions where you haven’t claimed a tax deduction. For those eligible, the government may contribute 50 cents for every dollar of your personal superannuation contribution, up to $500 a year. For eligibility check out the ATO website.
  
  Low income earners who are earning $37,000 or less may also receive the ‘low income superannuation tax offset’ – which effectively means the Government refunds your 15% contributions tax by making a government contribution to your fund, up to $500 a year.

• Spouse contributions: If your partner would like to help rebuild your super, they can put money into your super for you. They may be eligible for a tax offset of up to $540 if they make contributions for you and you are a low income earner or not working.

Keep in mind that there are limits on how much you can contribute each year, these are available at the ATO website.

For more information and to check your eligibility, visit the ATO website.

Find out how you can make a contribution into your Essential Super account.

It’s a good idea to review your insurance regularly throughout your working life. If your family situation changes you may find you want to increase your level of insurance cover or consider other insurance options outside super.

Getting insurance through your super can be a cost effective way to get coverage if you think this is something you need.

With Essential Super, we offer Death as well as Total and Permanent Disablement (TPD) cover for members. Premiums are paid out of the money in your super account.  

It’s important to read through the Product Disclosure Statement (PDS) and Reference Guide closely so you know exactly what you’re getting.

ASIC’s Moneysmart website also explains what type of life insurance cover members can get through their super, as well as things to consider with each type of insurance cover.

To review your insurance options, log on to NetBank > Essential Super > Insurance.

A binding non-lapsing death benefit nomination instructs your super fund which of your eligible beneficiaries to pay your death benefit to if you die. This instruction is separate to your will, so make sure it is up to date.

Consider setting one up and also make sure you keep it up to date if your circumstances change.

You can find the Non-lapsing death benefit nomination form for Essential Super here.