Since July 2005, employers have been obliged to provide employees with the right to choose which superannuation fund their compulsory (now) 9.5% employer superannuation guarantee contributions are paid into. Prior to this, employers could choose the fund to which contributions were paid on behalf of their employees.
Further to this, portability rules generally allow you to consolidate your benefits into one account with one superannuation provider of your choice. This means that you can now have better control over your superannuation savings; you know where your funds are invested; and you are not paying multiple administration charges. In addition, you can decide how your funds are invested according to one investment profile for you, which reflects your anticipated needs and wants, in line with your own personal goals and objectives.
Many Nextplan advisers and their clients have developed a special interest in Self Managed Superannuation Funds (SMSF). SMSF offer many advantages over traditional “public offer” or “Industry” funds, such as greater flexibility and control. You can choose how and where you wish to have your money invested and access to a broader range of direct investment options – shares, managed funds and direct property investment.
However, using a SMSF brings with it additional responsibilities as you are the trustee of the SMSF as well as the member.
So which is right for you?
Your Nextplan adviser can review your financial position regarding the appropriateness of a Super Plan or a SMSF as it applies to your overall financial plan.
By coordinating the implementation of the appropriate structure, this can be a very straightforward process, and most importantly, your Nextplan adviser can provide advice on the selection and management of investments within your investment strategy, to help you achieve the best possible outcomes for your retirement savings plan.