With the end of financial year fast approaching, business owners should seek advice about making superannuation contributions before 30 June to make the most of tax incentives and retirement savings.
BMO Senior Financial Planner Shane Lee said that in most cases people who are self-employed are not required by law to contribute to their own super, so they often neglected to make contributions for themselves.
“As business owners, we can be very good at making sure we pay the correct amount of super for our employees, but we sometimes forget to look after ourselves.”
Recent forecasts predict those people born in Australia in 2015 are expected to live to an average age of 82 years.
“We are living longer, therefore we need to be thinking seriously about making sure we have the financial security to enjoy a comfortable retirement. If you are retiring in your 60s, you have to have the means to be able to support yourself for another 20 or even 30 years.”
Mr Lee encouraged people to be more actively involved in their super.
“Superannuation can be a very tax-effective structure. The money invested belongs to you, and, even though you can’t access it until a certain point, you can still have control over what kind of returns you are seeking, and what level of risk you want to take, with your investments.
“Talking to your financial advisor and your accountant is important to make sure you are using the best strategies to maximise earnings within your super.
“Every situation is different and superannuation planning can get complicated, so it’s best to get advice that is specific to your circumstances.”