Goals for the New Year: how your super could help21 Dec 2022 4 min read
The year is wrapping up, and you might be thinking about your goals for the new year. If you’ve got big plans for 2023, keep your super in mind because it may be able to help you reach some of your goals.
Buying your first home
Is 2023 the year you’ll buy your first home? You could use your super for your deposit under the first home super saver (FHSS) scheme. Eligible couples can access up to $100,000 for a deposit on their first home ($50,000 per eligible person). If you’re hoping to buy your first home in 2023, read about the scheme now — you’ll need to have made eligible contributions to your super before you can withdraw money under the FHSS scheme. There are other eligibility requirements you’ll need to meet too.
If you’re one of the many people changing jobs after years of standing still under Covid-19 conditions, it’s important to keep your super in mind. When you change jobs, your new employer must make contributions to your ‘stapled’ super fund, unless you instruct otherwise. It’s a good time to review the super fund you're with and check whether you have accounts elsewhere — more than one super account means you’re paying more than one set of fees.
Having a career break
You may have a career break on the cards for 2023, whether for travel, family, study or something else. A career break also means an income break, and this is often when super is overlooked. When you’re not working, you’re missing out on your regular employer contributions to super. While you may not miss that super now, you’ll feel the difference later on. To help fill the gap, you could make your own contributions to super. There are a few ways you can do this:
- start salary sacrificing while you’re still working, so you’re adding more to super while saving on tax
- contribute some of your taxed money
- have your partner transfer some of their super or add some money to your account.
Each option has its own limits and benefits. If you’re unsure what’s best for you, consider speaking with one of our Super Specialists — it’s a complimentary service to NGS members.
Downsizing your home
If you’re planning on selling the family home, you could use some of the profits to top up your retirement savings. If you’re 60 or older and eligible, you can add up to $300,000 ($600,000 for eligible couples) to your super from the proceeds of your house sale as a downsizer contribution. And despite the name, there’s no actual requirement to downsize, or buy another property at all.
Saving in super is often tax effective — downsizer contributions are not subject to tax within super. Your money will be invested within your account, earning returns to build your retirement savings.
Super is there to fund your retirement. But withdrawing all your savings as a lump sum can be difficult to manage. So, you may want to consider an income account — by taking that option, your money is invested in a tax-free environment, and you’ll receive regular payments, like a salary.
There’s plenty to consider at retirement, including whether you’re eligible for the government age pension, if you have enough in super and how long your super will last. It’s a good idea to get help from a financial planner, so you’re confident you’re on the right track. As an NGS member, your first appointment with a financial planner is complimentary.
Whether you’ve got big 2023 goals or you’re planning on laying low, there are a few super quick wins you can tick off your list to help you feel more organised.
- Update your contact details — this one is super easy. Just log in to Member Online and make sure your contact details are up-to-date. That way, you won’t miss out when we have important things to tell you about your money.
- Check your investments — do you know what you’re invested in? Do your investments suit your goals and risk tolerance? You can check and change your investment options through Member Online.
- Check your insurance — do you have insurance under super? Does it suit your personal needs? Your insurance details are on Member Online. If you’re not sure what or how much insurance you need, consider speaking with one of our Super Specialists — it’s a free service for NGS members.
- Update your beneficiaries — do you know who’ll get your super if you die? The safest way to make sure your money goes to the right people is to set up a Binding death benefit nomination. Super isn’t automatically included in your estate, so making a will isn’t enough. You can check your current set-up through Member Online.
Make 2023 the year you’re organised
Organising your finances can easily fall to the bottom of your to-do list. But the start of a new year is a great time to check in to see if you’re on track. An expert can point you in the right direction and make sure you’re ticking all the right boxes. We’ve got a range of advice services for NGS members, whether you need a quick chat over the phone or a tailored financial plan. Our Super Specialists can give you limited advice no extra cost, and if you need something more personalised, our financial planners can help. The first appointment with an NGS Financial Planner is complimentary.