I had no idea where my lost super was or the names of the funds. I just new it was scattered everywhere and I should definitely have more than $3,000 in my super. Australian Super Finder found all 7 of my funds and now my balance is almost $50,000. Thank you so much for getting my super back on track. ? Leonie, Thomastown VIC

Super Facts and Tips

Why Salary Sacrifice Has Become Much Better

That might offer you thousands more to spend each year when you retire.

If you opt for salary sacrificing to save for the future, then it's time to examine if you're taking advantage of the government's new, superannuation contribution caps.

What Has Changed?

On July 1, 2014, the government lifted the concessional contributions caps that limit the amount you can add to your super from your pre-tax income. The new caps for the 2014 - 15 financial year are: • $ 35,000 a year for individuals aged 49 or more on June 30, 2014.
• $ 30,000 a year for everyone else.

These caps apply to both your employer's compulsory Superannuation warranty contributions and to any voluntary salary sacrifice contributions you ask them to make. So, if your cap is $30,000 and your company makes $9,000 in superannuation guarantee contributions a year, you can now improve your super with extra income sacrifice contributions of approximately $21,000.

If you're aged in between 50 and 59, you can now put an extra $10,000 into superannuation from your pre-tax income.

What Does This Mean For You?

If you go for salary sacrifice, you already know how easy and tax-effective it can be. By asking your employer to pay some your pre-tax income straight into your superannuation account, you can then grow your super faster while paying just 15% tax on your additional contributions.

The new concessional contribution caps make it possible to put much more into super each year while taking advantage of that low 15% tax rate. For instance, if you're aged in between 50 and 59, you can now put an extra $10,000 into super from your pre-tax salary - and if you pay the leading limited tax rate, that could save you $3,200 in tax as compared to an after-tax financial investment.

How much distinction could that make? According to ASIC's MoneySmart Retirement Organizer, a 50-year-old man who makes $100,000 a year and has $120,000 in superannuation might enhance their income in retirement by practically $8,000 a year if they salary sacrifice as much as the existing cap. Even if you're close to retirement, additional super contributions now could make all the difference in the years to come.

Get the Right Advice

A financial adviser can assist you in making the most of your super choices, with a customized plan to put you on track to a retirement worth looking forward to. The faster you start planning, the quicker you can get your money in motion.

If you want advice about this matter, then feel free to call us at 1300 252 167

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