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Your superannuation with Aviva
Understanding superannuation has been made a little simpler with the recent budget
announcements, however there are still many aspects of superannuation that are confusing, and
understanding how to get the most in your retirement remains complex.
What do the changes mean?
Some of the key changes are:
- reasonable benefit limits have been abolished
- the present age-based limitations on taxable contributions will be altered to one flat level
irrespective of age, with some transitional arrangements
- a limit will be placed on personal undeducted contributions.
- contributions for the self-employed will be fully deductible and the opportunity to participate in the co-contribution will now be available to the self-employed
The present tax on contributions and earnings of 15 per cent will remain, as will the preservation age.
The majority of changes to the superannuation system are effective from 1 July 2007.
An adviser can also help decipher the superannuation changes, set investment goals and give you a strategy for achieving them.
The major changes to superannuation legislation relate to people over 60 who have superannuation benefits taken from a taxed super fund.
The proposed changes are not limited to those over 60, so professional advice may assist you to
understand any potential impacts.
How much superannuation do I need?
How much superannuation needed to enjoy a comfortable lifestyle in retirement will depend on
several factors, such as the amount of time spent in retirement and the lifestyle you expect to
lead.
How do I choose the right investment strategy
The key to choosing an investment strategy is matching your required level of return with the investment risk you can tolerate.
For example, some people have many years until retirement and a high growth strategy may be suitable for them. Others, whose retirement is only a short time away, may be less willing to take risks with their superannuation, leading to a more conservative, low risk strategy for their investments.
When making your investment choice, there are two important things to consider:
- your age and how much time you have until retirement,
- your risk tolerance - how comfortable you are with the level of risk associated with your investment strategy.
This information does not constitute investment advice and does not take into account your
personal situation.
Do I need an adviser?
An adviser can help decipher the superannuation changes, set investment goals and provide you with a strategy for achieving them. We suggest you consult a financial adviser to discuss what is appropriate for your needs, objectives and circumstances.
There are more than 3,000 financial advisers using Aviva nationwide. They can advise you on the best products and services to help you achieve your financial goals.
Disclaimer
The information in this document reflects Navigator Australia Limited’s (‘ Navigator’)
understanding of existing legislation, proposed legislation, rulings etc as at the date of issue.
In some cases the information has been provided to us by third parties. While it is believed the
information is accurate and reliable, this is not guaranteed in any way.
The information is not, nor is it intended to be, comprehensive or a substitute for professional advice on specific circumstances. The financial advice or information given in this document is of a general nature and is not taken into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision on the basis of the above information, a prospective investor needs to consider, with, or without the assistance of a professional adviser whether the advice is not a recommendation as to an appropriate strategy or financial product.
Applications to invest in a financial product issued by Navigator or any of its
related entities must be made by completing the application form attached to the Product Disclosure
Statement (‘PDS’) . A PDS is available from Aviva or your financial adviser. Investors should
consider the PDS before making an investment decision or deciding to continue to hold a product.