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Superannuation

Superannuation is an essential savings vehicle for your future. With low tax rates and a multitude of government concessions, super is one of the most attractive retirement savings vehicles around. But the question is… are you making the most of it?

The Government has placed enormous importance on superannuation recently and this is highly due to the fact that today, there are six taxpayers to every one pensioner. In 15 years’ time, there will be an estimated three taxpayers to every one pensioner.

It is important to note that your super is likely to be the second largest asset you will own in your lifetime, after your family home so it’s critical you understand how it works and how you can use it to your advantage.

With an ever increasing and aging population, the availability of the pension cannot be relied upon. People are also retiring earlier and living longer and this means that it is essential that more people fund their own retirement. We recommend that you start making plans for your retirement as soon as possible. The earlier you start, the longer you have to invest towards your goal and the lower your regular investment may be.

Strategic Prosperity Group understands all the rules and regulations that exist and can therefore assist you to determine your retirement objectives, accumulate sufficient capital to fund your requirements, put in place strategies to maximise your Centrelink entitlements and if there is a shortfall, look at ways to sufficiently bridge the gap.

When assessing your existing superannuation portfolio we conduct an in depth analysis of the following areas to ensure you are deriving maximum value:

  • Fee review and comparison to other retail offerings. Specifically the impact of fees on projected future values
  • Performance evaluation with respect to retail peers and market benchmarks
  • Assessment of the investment menu being offered, depth of manager diversification and asset allocation sector spread
  • Projections to retirement between your existing fund/s and retail peers
  • Existing asset allocation review versus our recommended strategic allocation and how this aligns to your respective investment risk profile

Given that superannuation is a long term investment it is also important to note that when you invest regularly, you enjoy the effects of compounding. Compounding occurs when interest earned on your savings is re-invested, so you earn money on your initial capital, as well as on any income you have already earned, that is, you are earning interest on your interest.