It's a fact - we all need to take responsibility for funding our retirement. So if you are looking for a simple and tax effective way to boost your retirement savings, you may want to consider a strategy known as salary sacrifice.
Salary Sacrifice involves getting your employer to contribute some of your salary, wages or a bonus payment directly into super - before tax is deducted at your marginal rate (which could be up to 46.5%). The advantage of this strategy is that salary sacrifice super contributions are taxed at a maximum rate of 15% - a potential tax saving of up to 31.5%.
Mentor is able to guide you to the optimum level of salary sacrifice for your individual circumstances whilst considering your long term objectives and also current income requirements. If you are aged over 55 then a Transition to Retirement will also be explored.
You need to be aware that:
- A salary sacrifice arrangement may result in a reduction in other benefits such as leave loading, holiday pay and Superannuation Guarantee contributions, as these benefits are often calculated on your base salary, you should check with your employer.
- Salary Sacrifice contributions must be preserved until permanent retirement after reaching your preservation age or a condition of release
Please contact Mentor and speak with one of our Financial Planners, so we can provide you with tailored financial planning advice which is
appropriate for your individual needs.