It's easy to find out how much super you need to pay your employees. But how much you should be putting into your own super account each year? 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.
It's also a good idea to speak to a financial adviser. They can help you with strategies to make the most out of your super, and save more for your retirement.
Do you have multiple super accounts from when you were an employee? 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. Combining all your super into one account can reduce the fees you pay, and make it easier for you to manage and track.
By rolling your own super into a group plan for you and your employees, you may also be able to take advantage of the scale benefits of having multiple super accounts in one fund - potentially reducing your fees even further. For more information on starting a group super fund, click here.
If you're self-employed, you are generally eligible to claim your super contributions (both for you and your employees) as a tax deduction. For business owners, this can make super a tax-effective way to save - provided you're prepared to put this money away until retirement.
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.
You hold your life insurance (usually death and 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 - using your super contributions means you're effectively paying your premiums using pre-tax money.
To find out more about insurance for business owners, click here.