Before reaching the preservation age, still you can access your Super under a very limited circumstances, like severe financial hardship or specific medical conditions.
Superannuation is a compulsory arrangement put in place by the Australian Government to encourage people to accumulate funds to provide them with an income stream when they retire.
Your employer pays a minimum of 9.5% of your salary into a super fund nominated by you. The employer contribution rate Superannuation Guarantee Contribution (SGC) has been 9.5% since July 2014, with a plan to increase it to 12% by 2025.
While you may feel compelled to save Super, you can choose Australian Islamic Super as your superfund.
Super is also a tax-effective way to save for your retirement. You only pay 15% contributions tax on your before-tax super contributions.
You can access your super, once you retire or reach your preservation age.
Before reaching the preservation age, still you can access your Super under a very limited circumstances, like severe financial hardship or specific medical conditions.
Consolidating your accounts into one could save thousands of dollars over time and be a strong boost to your retirement savings in the future.
Our Islamic Choice Super team can help you to check with ATO if you have any lost super sitting there waiting for you to claim it. If your lost super has been transferred to the ATO you can still retrieve it. This needs to be done ASAP to make sure you don’t miss out on any investment returns.
Choose your investment strategy based on your risk tolerance. As you move into a different stage in your life, different investment options might be appropriate for your situation and worth considering.
You can contribute more money into your super account through concessional or non-concessional contributions. Note: Limits apply to how much you can contribute to super in any one financial year.
Every superannuation fund has different fees structure and investment strategies, so make sure you choose the right Investment strategy by doing a little bit of research that covers:
Work out how much super you’ll have when you retire, and if it will be enough to fund the lifestyle you want.
You probably know how much super you have now, but do you know how much you’ll have when you retire? It’s never too soon to start planning for a better financial future.
The amount of super you’ll need when you retire depends on:
Most people can now expect to live well into their eighties. This means that if you stop working at 65, you’ll need retirement income for 20 years or more.
ASFA estimates that the lump sum needed at retirement to support a comfortable lifestyle is $640,000 for a couple and $545,000 for a single person. This assumes a partial Age Pension.
ASEA estimates that a modest lifestyle. which covers the basics. is mostly met by the Age Pension. They estimate the lump sum needed to support a modest lifestyle for a single or couple is $70,000.
Many things contribute to your income in retirement. This includes investments outside of super and assets such as your home, especially if you downsize. If you decide it is important to build your super, there are some actions that can make a big difference over time.
Think about:
- Consolidating your super into one account so you pay fewer fees
- Making extra contributions to grow your super
- Changing your super investment options
If you don’t have as much as you’d like, it’s never too late to build up your super to boost your retirement savings.
Planning for your retirement is complex, and everyone’s situation is different. Think about getting personalised advice from one of our financial advisers to help you plan ahead.
There are over 800,000 Muslims in Australia, that number is only growning. Get in touch to see how we can help you stay on the right path and avoid Riba.
At Meezan, it is about your needs, your goals, Your future. You are the reason we exist. We are here to give you the best help we can give. You are our focus and our motivation.
Meezan Pure Wealth Pty Ltd:
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