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Your superannuation with Aviva
Investing for retirement is one of your most important activities. Though there have been some
efforts to simplify superannuation in the recent past, there are still many aspects that are
confusing. Understanding how to get the most in your retirement can be a challenge.
What are the key changes to come into effect from 1 July 2009?
In the most recent review of Australia’s superannuation environment, the Federal Government announced the following key changes for 1 July 2009:
-
Concessional Super Contribution Caps halved:
- the concessional contribution cap for 2009/10 will be reduced from $50,000 to $25,000 per financial year for those under 50 years old, indexed from 2009/10 onwards
- the transitional cap set at $100,000 for over 50 year olds reduces to $50,000 per financial year for 2009/10 and remains unindexed
- the non-concessional contributions cap remains unchanged at $150,000 and will be six times the concessional contributions cap going forward
-
Super co-contribution* temporarily reduced:
- matching rate reduced from 150% to 100% (maximum $1,000) for every dollar of personal contributions from 2009/10 to 2011/12
- matching rate then increases to 125% (maximum $1,250) for or every dollar of personal contributions in following financial years from 2012/13 to 2013/14
- matching rate returns to 150% (maximum $1,500) for every dollar of personal contributions from
1 July 2014
* strict eligibility criteria and conditions apply
- Government Age Pension age progressively increased to 67 years old by 2023: this measure is intended to encourage people to work longer
-
Government Age Pension payments increased:
- the single base pension increased from 20 September 2009
- the base pension and pension supplement increased by $32.49 per week for singles and $10.14 per week for couples
-
the Centrelink income test taper rate increased by the following amounts:
- single — from 40 cents to 50 cents
- couples — from 20 cents to 25 cents
If you are income tested this change will reduce your payments.
- Seniors Health Card income test confirmed: tax free super benefits (such as lump sums and pensions) will NOT be included as income for income testing of the Commonwealth Seniors Health Card
The present superannuation fund tax on contributions and earnings of 15% will remain, as will the preservation age of 65 years old.
Though most of the changes relate to people in, or approaching retirement, it is important that
you understand any potential impacts that may affect you. A financial adviser can assist you with
this.
How much superannuation do I need?
How much superannuation is 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?
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
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, especially if they have a high risk tolerance. 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.
Do I need an adviser?
An adviser can help you understand the superannuation rules, set investment goals and provide
you with a strategy for achieving them. We encourage you to consult a financial adviser to discuss
what is appropriate for your needs, objectives and circumstances.
There are more than 11,000 financial advisers registered with Aviva throughout Australia.
They can advise you on the most suitable products and services to help you achieve your financial
goals.
Disclaimer
This above information is issued by NULIS Nominees (Australia) Limited (NULIS) ABN 80 008 515
633, AFSL 236465 and Navigator Australia Limited (Navigator) ABN 45 006 302 987 AFSL 236466.
Navigator is the operator of the Navigator Personal Investment Plan and administrator for the
Navigator Personal Retirement Plan. NULIS and Navigator are part of the Aviva Australia group which
is ultimately owned by the National Australia Bank group.
The above information is believed to be current as at date of publication. While every attempt has been made to ensure the accuracy and reliability of the information, National Australia Bank Limited and its related bodies corporate do not guarantee it in any way. The above information is not, nor is it intended to be, comprehensive or a substitute for professional advice. The above information is of a general nature and does not take into account the objectives, financial situation or needs of any particular person. Before making an investment decision on the basis of the above information, a prospective investor needs to consider the information and the applicable Product Disclosure statement, with, or without the assistance of a professional adviser.
The Aviva name and logo are used under licence from the Aviva plc Group.