Tools, tips & strategies

How much super is enough?

Your retirement may be a distant thought or it may be just around the corner. Either way, it’s important to know that when you retire you can afford the lifestyle you deserve.

While Australian employers are required to contribute at least 9% of your salary to super, you need to work out if this will be enough for you to live comfortably in retirement?

The right amount of super you’ll need depends on your individual circumstances, such as, your current age, current income, desired retirement age, desired retirement income and current super balance.

ING’s Super Simulator will help you work out how your super savings are tracking. It's also a good idea to speak to a financial adviser, they can help you with tips and strategies to make the most out of your super and save more for your retirement.

Find your lost super

According to the Australian Taxation Office (ATO), one out of every two working Australians has lost super. If you’ve changed jobs or addresses, or even your name, you could be one of the millions of Australians who has lost track of their super.

Your super account is considered ‘lost’ by the ATO if:

• Your account has not received any contribution for two years
• Mail sent by your super fund is returned unanswered twice.

To find your lost super all you need is your:

• Tax file number
• Full name
• Date of birth.

It's that easy, and even better, the search is free! Use ING's 3 step process to find your lost super. Once you have located your lost super, you can consolidate it all into one account so that you can keep track of your savings.

Consolidate your super and save

Do you have 1, 2 or even 3 super accounts? Well you’re not alone. The average worker has approximately three or more super accounts. Over time, having multiple super accounts will erode your retirement savings, as you are most likely paying more in fees. Bringing together all your super into one account can reduce the fees you pay, making it easier for you to manage and track. Consolidating your super could even be helping your money work harder for you.

To find out more about the benefits of consolidating your super read our helpful fact sheet.

If you consolidate your super into your Corporate Super, Integra Super or OneAnswer Personal Super account before 31 December 2010 you will go into the draw to win $5,000* in cash.

Rolling over your super accounts to ING is easy, simply:

• For Corporate Super or Integra Super complete this Rollover form for each account you want to rollover and for OneAnswer Personal Super complete this Rollover form for each account you want to rollover.
• Provide Certified Proof of Identity for each rollover form
• Send the form and proof of identity freepost to ING Life Limited, Reply Paid 5113, Sydney NSW 2001

Once we receive your form and proof of identity we will contact your other super funds and manage the process for you.

Salary sacrifice

When you salary sacrifice into super, you divert part of your pre-tax salary into your super account. This arrangement is set up between you and your employer, so that instead of receiving it as salary after tax is deducted, it is contributed directly to your super.

Salary sacrifice can help you save on the income tax you pay and increase the level of your retirement savings.

Salary sacrifice can work effectively if you:

• are under 75 years of age and eligible to contribute
• want to give your retirement savings a boost
• have a marginal tax rate above 15%
• can salary sacrifice income without it having a huge impact on your lifestyle
• have an employer willing to salary sacrifice your income.

Learn more (144kb) about salary sacrifice fact sheet to find out more or speak to your financial adviser to see if salary sacrificing is an option available to you to boost your super savings.

Government Co-contributions

The Government co-contribution is an easy way to boost your superannuation savings.

If you make voluntary after-tax contributions to your super, are in the low to middle income threshold and meet the other eligibility criteria, the Government will make a contribution to your superannuation.

If your total income is less than $61,920 in the 2009/10 financial year, the Government will contribute up to $1.00 for each $1.00 of personal after-tax contribution you.

Find out (126kb PDF) how the Government co-contribution could work for you or talk to your financial adviser.

Insurance through super

To help Australians save for their retirement, the Government has implemented a number of tax concessions for superannuation. As a result, holding some of your life insurance inside super can be a tax-effective way to get the cover you need.

How does it work?

You hold your life insurance - usually death and total and permanent disability (TPD) cover - inside your super account, and use your super contributions to pay your premiums instead of purchasing a stand alone insurance policy where premiums are paid for from your after tax income.

By using super contributions, you’re effectively paying your premiums using pre-tax money.

How does insurance through super benefit you?

• You may not have to find extra money to pay for your premiums because these can be paid from your super fund account balance.
• Tax concessions apply for most premiums paid.
• Given the savings, you may be able to top up any stand-alone insurance policies (those you hold outside of super) and increase your overall coverage.
• Your qualifying dependants can receive unlimited tax-free lump sum payments if you, the insured, pass away.
• Premiums via group super plans can be cheaper because the super fund is buying the insurance ‘in bulk’.

Are there any limitations?

• When an insurance policy is held inside super, the super fund is the owner of the policy. That means any benefits are paid to the fund before they’re paid to you or your beneficiaries. This could potentially slow down payment, and add an additional set of criteria you need to meet before the funds are released.
• Eroding your super balance to pay your insurance premiums can reduce your long-term retirement savings. To avoid this, you might consider salary sacrificing into your super to cover your insurance premiums.
• Insurance benefits for policies held outside super are often paid tax-free – regardless of who receives it. The same rules do not necessarily apply for benefits paid via a super fund. For example, if a beneficiary is a non-dependant child or adult, a death benefit may taxed at 16.5%.

To find out more about this option talk to your adviser or read our helpful fact sheet.

Five simple rules for investing in volatile markets

As we have seen in recent times investment markets can change overnight. But there are some simple rules that investors have been using to help build long-term wealth for decades.

Stay calm

Diversify your investments. It's notoriously difficult to predict what's going to be the best performing asset class in any given year. Diversifying investments across asset classes allows you to benefit from each year's best performing asset classes and can also help you smooth the volatility of your returns.

Diversify your investments

Spend time in the market. One of the most powerful features of long-term investing is the ability to benefit from compound returns. By staying invested, as opposed to regularly entering and exiting the market, your investments have more time to grow and earn returns on your investment returns.

Spend time in the market

Make regular investments. Investing regularly is another way to avoid timing errors as it allows you to ‘average out’ the cost of your investments over time.

Monitor and review your investment strategy

Monitor your investment strategy. Like most things in life it is a good idea to regularly review your financial plan to make sure it is still right for your current financial situation.

Seek professional financial advice

Seek professional financial advice. A financial adviser can help ensure your strategy meets your needs and even help you update it as your circumstances change. With a clearly defined strategy and goals you can have the confidence you need to withstand the current market

To find out more read our Tips to safe investing in volatile markets (1,714kb) or talk to your financial adviser.

After-tax contributions

Even if you are not eligible for the Government Co-contribution, after-tax contributions may still be a great way to boost your super. Make an after-tax contribution of $1,000 or more into your Corporate Super, Integra Super or OneAnswer Personal Super account by 31 December 2010 and you will receive an entry into the draw to win $5,000* in cash.

It’s easy to make an after-tax contribution to your super using Internet Banking or BPAY®

*Terms and conditions apply and are available at www.ing.com.au/member. The promoter is ING Custodians Pty Limited (ABN 12 008 508 496, AFSL 238346, RSE L0000673). Authorised under NSW Permit No. LTPS/09/11126 and ACT Permit No. TP09/04765.