Can you hear the whistles and the champagne popping in your future on the day when you start to access your superannuation? Or will it be more like cheap cask wine in plastic glasses and a woo-hoo.

Every year you have the opportunity to save money into your superannuation fund. So every year you don’t save is another year you miss out on growing your superannuation.

Have you got a plan A to save money or are you relying on Plan B? Have you even got a Plan B?

With the end of the financial year coming up and the start of a new one around the corner, you have the opportunity to cash up some last minute monies into your fund. You should then be planning how you are going to cash up more money into super for the next financial year.

If you are under 50 you are entitled to contribute up to $25,000 and claim a tax deduction, and if you are 50 or over, that limit is $50,000. Now if you are an employee, this type of superannuation effectively has to be paid from your employer or sacrificed from your wages. Only if you are self employed are you entitled to make these claims in your personal returns.

In addition to the amounts you can claim a tax deduction for, you can contribute up to $150,000 per person each year. You are entitled to bring forward up to 3 times this amount within one year, but of course you can’t contribute for another 2 years after that year. So a total for up to $450,000 can be contributed.

Timing is everything with superannuation. Over-contribute any of these levels and it will cost you in extra taxation. So make yourself aware of what is being contributed for you by your employer and when they actually make those contributions.

How you invest your money within the superannuation fund is the next part of the plan you need to consider. This factors in how risk adverse you ar, because the more return you are chasing the riskier you are prepared to be in your investing. So the less riskier means the less return you are going to achieve.

So if you can’t contribute monies regularly into superannuation, what is your Plan B for your retirement?  And how will you grow what super you actually contribute so you at least blow the whistles on the day of reckoning?  To discuss your plan with a highly experienced advisor at Munro Accountants phone 5539 9777 or email Rob McAskill robm@munro.com.au

©Michelle Gargar 2011