Keeping it in the family

Super News

Sharing the decisions about our finances comes naturally to most couples. So why not do the same with your super! Here are the benefits of bringing all yours together.

Sharing the all-important financial decisions that affect their lives is something most couples take for granted. Saving for a holiday. Choosing the right power plan. Changing mobile providers to save a few extra dollars. All the way up the scale of importance to deciding which financial institution provides the best value and service for the mortgage on your dream home, we naturally consolidate and enjoy the benefits. These are the everyday decisions that we know can have a big impact on our financial wellbeing and future.
Yet when it comes to making decisions about how to make the most of our opportunities to create wealth and secure our future through superannuation, many have a ‘set-and-forget’ approach. Which is kind of strange when you consider the benefit of banding together as a couple to take advantage of the tax incentives on offer.

Share the super benefits with your spouse or de-facto partner

Yet it seems that when it comes to building a nest egg for the future, many people simply go it alone. This ‘all your eggs in one basket’ mindset around super is understandable because the benefits of sharing super are not widely known. But the real fact of the matter is that there are some tangible benefits to sharing the load, contribution splitting, even tax rebates in certain circumstances. Not to mention that keeping all your super with the same fund and makes planning for your future together a little easier.

An ESSSuper Accumulation Plan account makes it easy

For example, even though ESSSuper Defined Benefit is not a public offer fund, your spouse may be eligible to setup an ESSSuper Accumulation Plan account. Plus, you may be able to make contributions to your partner’s super account. If your partner’s income is less than $40,000 p.a. you may also be able to make ‘spouse contributions’ into their Accumulation Plan and earn a tax rebate. If you qualify, you can contribute up to $3,000 after tax into their super and you receive a tax rebate, up to a maximum of $540 a year.

Contribution splitting may be right for you

With an ESSSuper Accumulation Plan account you may be able to take advantage of ‘contribution splitting’ that allows you to split some pre-tax contributions with your spouse or partner1. For example, contribution splitting with an older spouse enables earlier access to superannuation benefits (if your older spouse is aged 60 years and over, generally no tax will apply to their superannuation benefits). Splitting contributions with a younger spouse (under 65 years old) may result in higher age pension entitlements due to the deferral of those contributions being counted under the Social Security income and assets tests.

Accumulate for the future

As a member of ESSSuper’s defined benefit funds, the Accumulation Plan lets you top up your super too. Both you and your employer can contribute, and you can apply for insurance cover to age 65. And it’s available to you while you’re working or retired.
With flexible contributions, insurance, investment and beneficiary options, an ESSSuper Accumulation Plan account gives you and your spouse a simple and flexible way to manage your super to meet your retirement goals. Our helpful Member Service Centre can talk you through all the benefits and requirements, simply call 1300 650 161. To learn more about the benefits of spouse contributions, please visit our website.

 

1.There are maximum limits on before and after tax contributions which are set by the Government, and if these limits are exceeded you may be liable for additional tax. It is important that you monitor your contribution levels as they may change from year to year. Please read the Product Disclosure Statement relevant to your particular fund, available from ESSSuper, for more information.
The information contained in this article is of a general nature only. It should not be considered as a substitute for reading ESSSuper’s Product Disclosure Statement (PDS) that contains detailed information about ESSSuper products, services and features. Before making a decision about an ESSSuper product, you should consider the appropriateness of the product to your personal objectives, financial situation and needs. It may also be beneficial to seek professional advice from a licensed financial planner or adviser. An ESSSuper PDS is available at www.esssuper.com.au or by calling 1300 650 161.

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