How you can grow a healthy balance.
#1 Get everything in the one place
If you've had more than one job, chances are you'll have more than one superannuation account. So you may be paying multiple fees, which eat away at your retirement savings over time.
Three ways to help eliminate multiple fees and maximise your savings are:
- Rollover: find which funds your superannuation has been contributed to and consider moving all your super money into one fund of your choice. You can:
- visit virginmoney.com.au to download a Rollover Form
- or to get a copy of the Rollover Form sent to you, call us on 1300 652 770.
- Find your lost super: Of the $12.9billion+ in lost super in Australia, some of it could be yours. To lay claim to any lost money you may have call the ATO on 13 28 65 or use their Superseeker tool online – all you'll need is your Tax File Number (TFN) and date of birth.
- Your 9% Employer Contributions (SG): check your employer is paying your super contributions into your consolidated Super account. You can:
- visit virginmoney.com.au, for the Super Choice Form
- hand the form to your employer so they can start paying your 9% employer contributions into your Virgin Super account. Note: not all employers have to follow your choice of Fund so check with your employer.
Remember before consolidating super you should check to see if insurance or other benefits will be impacted or lost. Some funds may also charge withdrawal or exit fees.
# 2 Salary Sacrifice
Another way to boost your balance and potentially save on tax is by contributing an additional part of your before tax (gross) salary.
This is called salary sacrificing and it works like this:
- you ask your employer if they will pay some of your gross salary into your super fund.
- your superannuation contributions are taxed at a maximum rate of 15% (provided you don't exceed the before tax (concessional) contribution cap for the year and we hold your TFN).
Salary Sacrifice contributions do not get treated as taxable income, so income tax is not payable on the amount paid to the super fund. However they do count as income for assessing your eligibility for a number of government programs including the government super co-contribution, spouse contributions rebates and numerous welfare benefits.
# 3 Government Co-Contribution
The government offers a co-contribution incentive to help boost your super savings. So if you earn less than $61,920 p.a. and meet other eligibility criteria, you may be able to receive a co-contribution from the government by making eligible personal superannuation contributions to your super fund.
If your 'total income' is $31,920 or less and you make a personal contribution of $1,000 or more, you may be able to receive the maximum co-contribution ($1,000). If your 'total income' is less than $61,920, you may be able to receive a smaller co-contribution. Your 'total income' includes your assessable income, reportable fringe benefits and reportable employer superannuation contributions (eg. Salary sacrifice contributions).
# 4 Keep on top of your super
- Read the latest Virgin Super quarterly market reports (email and online).
- Check your online account at virginmoney.com.au/superannuation to be aware of how your super is performing (you can also check your balance or change your investment mix).
- Read your 2009/2010 Virgin Super Annual Statement carefully.
- Contact us to make sure we have your email address or if you've forgotten your online account login details.
- Give our friendly Customer Care Team a call on 1300 652 770; or email us at firstname.lastname@example.org
Why grow your balance? Well the more you have in your Virgin Super account, the lower your fees could become thanks to our percentage based Management Fee which decreases as your balance grows.
For more information refer to the current Virgin Super PDS.