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June, 10 2008               

DON'T MISS THE OPPORTUNITY FOR A FREE SUPER TOP-UP

The end of the financial year is just three weeks away - providing you with a narrow window of opportunity to top up your superannuation and potentially benefit from the Federal Government's superannuation co-contribution scheme.

There are a number of very good reasons to boost your superannuation contribution now.

Any addition to your superannuation savings will be multiplied many times as a result of your growing account balance accruing interest.  Over 30 years, top-up payments can make the difference between 'retirement living' and 'living well in retirement."

The value of superannuation is well recognised.  So much so, that the Government provides additional incentives for people to put their precious 'spare money' aside for retirement through its co-contribution scheme.

If your total income is less than $58,980 and you make a personal, after-tax super contribution into a superannuation fund such as Statewide, you may be eligible to receive from the Government $1.50 for every $1 you contribute to super - up to a maximum co-contribution of $1,500 a year.  Very valuable money for nothing, particularly as that $1,500 isn't subject to tax.

It's also easy to claim.  All you have to do is make your contribution before June 30.  Then, when you lodge your annual tax return, the co-contribution amount will be credited directly to your superannuation account.

The advantages of topping up your super before June 30 also apply to making additional payments over the rest of the year.  It's something worth remembering as we enjoy tax cuts in the new financial year.

For example, a 32 year old with a super balance of $25,000 and earning $50,000 a year, relying solely on Superannuation Guarantee contributions for retirement, would have $246,000 in super by age 65 (assuming earnings are seven per cent after management fees, plus tax and inflation of three per cent a year.  Source: ASIC Super Calculator).

If tax savings of $1,000 were invested in super as an after-tax contribution, and the maximum co-contribution benefits were received each year, by age 65 there would be $310,000 for retirement.  That's an extra $64,000 to collect by saving money most likely not even missed!  (This is an illustration only, is predictive in nature and should not be relied upon.  The results may be affected by inaccurate assumptions or by known or unknown risks which may result in a materially different return).

From July 2009, the Government is proposing to change the definition of 'income' to include certain salary sacrifice contributions when determining eligibility for government support.  This will affect the co-contribution amount that can be received.  For more information, consult your super fund or financial planner.

The information provided above is of a general nature. It does not consider your specific needs nor is it intended to be financial product advice. You should obtain independent financial advice, and consider the applicable Product Disclosure Statement before making an investment decision.

Visit us at 99 Gawler Place, Adelaide
Telephone us on 1300 65 18 65
Email us at sasuper@statewide.com.au
Visit our website at www.statewide.com.au