Specially designed Superannuation Funds can be arranged which incorporate Superannuation Guarantee payments, Self-Employed Funds and Self-Managed Funds.
IAS can also assist you in tracking down your lost superannuation.
There are a number of ways that you can use your superannuation to benefit you now, or adjust the way your superannuation is set up to provide
greater return for your retirement.
Which super fund is best for me?
Hardly a day seems to go by without superannuation being featured in the popular media.
We are constantly bombarded with advertising that bestows the advantages of one fund over another, with much of the focus
being given to short-term investment performance. Of course, the question of fees charged by super funds is never far from the front page.
But you may well ask, which is the best super fund for me?
With the level of complexity of superannuation and super fund offerings constantly growing, the task of selecting a suitable
fund can be very taxing for the lay person.
For many Australians, engagement with the superannuation system is quite low and the idea of following the crowd and having
employer superannuation contributions made to the employer’s 'default fund' is an easy option.
But, is the default fund the most appropriate fund?
Many superannuation funds open to members of the public offer an extensive array of features and investment choices.
Generally the more 'bells and whistles' a fund offers, the higher the fees. On the other hand, more basic offerings may result in lower fees.
A person with fairly simple superannuation needs may be adequately served by a fund that can accept employer and personal
contributions, provides some basic life insurance cover, and offers a limited number of investment options.
For someone with more sophisticated needs, a fund that offers an extensive range of investment options, the ability to not
only accumulate retirement savings but also pay a pension, provide binding death benefit nominations, and tax the fund at the
individual member level, may be the ideal solution.
Selecting an appropriate fund can be complex. Having a qualified financial adviser review your present superannuation situation
and arranging to consolidate multiple superannuation accounts will go a long way towards ensuring your super is best
matched to your circumstances.
Super Estate Planning
'There are only two things certain in life...death and taxes'.
This well versed quote from Benjamin Franklin is familiar to many of us yet surprisingly, many people fail to adequately
prepare their affairs to ensure the orderly and tax effective transfer of their wealth to the next generation.
Many Australians have a will, and expect that this will address their wishes on their death. However, unbeknown to many, a
person’s second largest asset (after their family home) is not covered by their will. Over recent years, superannuation has
become the largest asset many people have, after their family home. Yet superannuation is, in the most part, not included
for distribution as part of a deceased person’s estate.
Superannuation is governed firstly by the 'trust deed' of the superannuation fund to which a person is a member. Whether the
fund is a retail or industry superannuation fund, employer sponsored fund, or a self-managed super fund, the trust deed is
the primary source of reference when determining how a person’s accumulated benefit will be dealt with on death.
Superannuation legislation also governs the payment of superannuation benefits.
Superannuation law requires a member’s death benefit to be paid to a dependant of the member (this includes a spouse of the
deceased member, their children, and others who may be financially dependent on the member). A death benefit may also be
paid to a deceased member’s legal personal representative (their executor), in which case, it will be dealt with in
accordance with the terms of the will.
Many superannuation funds allow members to nominate one or more dependants to receive their death benefit in the event of
their death. Nominations can be either binding, or non-binding nominations. In the case of a non-binding nomination, or
where no nominations of beneficiary is made by the member, the trustees of the superannuation fund will exercise their
discretion in determining to whom a deceased member’s death benefit will be paid. Where a non-binding nomination has
been made, it may be overridden by the trustees of the fund.
On the other hand, a binding death benefit nomination, provided it is properly made, is binding on the trustees of the fund
and does not allow for any trustee discretion in determining to whom the benefit is to be paid. A binding death benefit
nomination can be useful in cases where absolute certainty is required in terms of the payment of a superannuation death benefit.
However, not all superannuation funds will allow their members to make a binding death benefit nomination. Information on the
types of nominations that can be made will generally be available in the printed material produced by the superannuation
fund, or on their website.
Planning what will happen to your superannuation on your death is a very important matter. An effective superannuation estate
plan can result in the right beneficiary or beneficiaries receiving their due entitlement in a timely and tax effective manner.
As no two circumstances are the same, super estate planning is something that needs to be undertaken on a personal basis.
