With the introduction of the $1.6 million transfer balance cap and related restrictions around contributions and the retention of death benefits inside superannuation, the question of whether you should also be looking to build wealth outside of super is becoming more widely-asked.
We are now in a new era of superannuation tax law, with lower contribution caps and restrictions on pension balances.
How will the upcoming changes to superannuation affect your journey to financial freedom?
We often find that it’s only as people near retirement that they really start thinking about their finances – especially when they start looking at everything that retirement offers, like making time for a hobby, more travel, volunteering projects or spending time with family. If you are considering retiring or reducing your working hours, but are concerned about having enough money to retire on, it’s not too late to seek some professional retirement planning advice to give you peace of mind.
The major amendments to the Government’s super reforms, announced on 15 September 2016, are summarised here.
With life being so busy it can be very easy to ignore your long-term financial plans, but we can’t stress enough, planning conversations today should be done early to create room for your future dreams.
So how can you make the most out of your personal or business situation?
‘Dare to dream’ and plan for the future – here are a few things to consider.
Key points
There was a raft of announcements at the May federal budget that could impact the SMSF sector should the Senate pass these proposals later this year.
It can be challenging running an SMSF during these times of regulatory uncertainty. But Daniel Martinez, senior financial adviser and Authorised Representative of AMP Financial Planning, says the starting position is to assume the proposals will become law.
Superannuation is still one of the most effective financial strategies and the main form of retirement income for most Australians. While there’s no doubt investments and insurance are important when building your wealth, so too is managing your superannuation.
