Membership Guide - SuperFacts.com

Section 3 – Growing your superSuperannuation is all about financial security and saving foryour retirement. If your employer makes contributions foryou, your compulsory super is designed to help you to buildyour retirement nest egg. However, compulsory super byitself may not be enough to give you the retirement lifestyleyou’d like. To reach your savings goals and be sure you havesavings enough to do the things you’ve planned, you maywish to consider making extra contributions to your super.Super tipKnow where you’re going by setting yoursavings goalsKnowing where you are going financially and havinga savings plan to get is critical to your successfulsuper saving.Seeking advice from a licensed or appropriately qualifiedfinancial adviser can help you to develop your personalfinancial plan and understand what you may need to doto achieve your goal.While it is often difficult to find extra money to put intoyour super, since it is generally a long term investment, timecan be a powerful partner when it comes to growing yoursavings. Small amounts contributed early can really make adifference to your savings in the long run. A key benefit ofsuper is that it is a tax effective way to save. Seeking financialadvice can be very useful in making sure your super strategyis the best it can be.Super contributionsThere are different types of contributions you and youremployer can make to help boost your super. For moreinformation about the types of contributions that are ableto be made to super, the annual limits on contributions, andthe tax that applies to contributions, please read the PDS.Give your super an extra boost – for free!If you are a low income earner and you make after-taxcontributions to your super, you may be eligible for aGovernment co-contribution to give your super an extraboost. The Government pays $1 for every $1 of extracontribution you make to your super, up to the maximumof $1,000. If you have an assessable income* of up to$31,920 (2011/12 financial year), you may be entitled to themaximum co-contribution. For assessable incomes* above$31,920, the maximum co-contribution will reduce by 3.33cents for each $1 of income, and phase out completely at anincome of $61,920. The income thresholds are indexed eachyear. Conditions apply, so see the PDS for more information.* Assessable income includes wages, share dividends, reportable fringe benefits andany salary sacrifice contributions to super.Super tipRollovers – don’t let multiple fees eat awayat your superDid you know that most Australians have more thanone super account? Having more than one accountmeans that you’re paying more than one set of fees.To avoid paying multiple sets of fees, you can rolloversuper money into Lutheran Super. That way, you’ll onlybe paying one set of fees and you will have only oneset of paperwork to think about. However, beforemaking any decision, you should contact a licensedfinancial adviser.It’s easy to roll your super over, simply complete theRollover form from Section 2 of this Guide and sendit to your previous fund. If you want to rollover morethan one other super account into Lutheran Super,photocopy the form, download a form from the websiteor call the Helpline for a copy.For more information please refer to the ProductDisclosure Statement available on the website.3