A lot of our daily client queries are based around superannuation. It’s a tricky area for many clients to wrap their heads around with lots of rules, regulations, risks and opportunities.
Here’s some facts below, followed by a key hint on how you can best navigate this somewhat complex, but incredibly important wealth creation strategy.
Fact 1:  There are over 500,000 Self Managed Super Funds in Australia, with approximately $440 billion under management  – indicating the average amount under management in each, is $880,000.
Fact 2:  There are approximately 1000 Self Managed Super Funds in Australia with more than $10 million in managed funds, and up to 6,000 with between $5 million and $10 million. This means that there are a lot of funds with significantly less than the above estimated average of $880,000.
 Fact 3:  47% of Australian couples and 78% of singles over 40 don’t have enough funds to retire.
This article explains the situation that couples in Western Australia (and the rest of the nation) need approximately $1 million in superannuation and savings to retire comfortably – a target most of us fall far short on.  And with us living longer now, the risk will only become higher!
A study by REST Industry Super reveals 30% of young people are hoping for an inheritance to help fund retirement; however superannuation is improperly accounted for in many people’s Estate Plans leaving family members somewhat short-changed.  And with many parents now choosing to have “SKI trips” (Spending the Kids Inheritance) the odds are, there’ll be less to inherit.
TIP:   Superannuation is a wealth creation strategy that the informed know how to take advantage of, and many others won’t. Education is key.  Many feel it’s too complex and too hard.
Our role at Wealth Planning Partners is as advisers is to assist clients with wealth creation for retirement (through investment, superannuation and insurance), but just as importantly to educate about the opportunity that Superannuation is and then how to secure this fantastic and tax effective asset for the benefit of their own retirement, and family.
We are here to support you in learning the ins and outs of superannuation and have fabulous partnerships with legal experts to assist with Estate Planning and Business Succession issues.
Give us a call to chat about your retirement issues, and ensure you start the New Year off on the right financial foot.