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If you’re looking for ways to potentially increase your retirement savings while reducing tax, carry forward concessional contributions could be a good option. Carry forward concessional contributions If you’ve had time out of work raising kids or for other lifestyle reasons, or you haven’t had the money to boost your super until now, you could take advantage of carry forward concessional contributions (also known as catch up contributions). If you’re eligible, the Australian government allows you to catch up on your super contributions by adding in more than the annual limit, so you can enjoy life at retirement without worrying about money. What are carry forward concessional contributions? Carry forward concessional contributions, also known as catch up contributions, fall under concessional (before-tax) contributions. Concessional contributions include: employer contributions (such as super guarantee and salary sacrifice). personal contributions that you claim as a tax deduction. There is an annual cap for concessional contributions which is currently $30,000. If eligible, you can contribute more than $30,000 this financial year by using any unused concessional contributions caps from the previous five financial years. Benefits of carry forward super contributions Making additional before-tax contributions can be a tax-effective way to boost your retirement savings. Super contributions are taxed at 15% (up to an additional 15% tax may apply to higher income earners) which is often a lot lower than most peoples’ marginal tax rate (rate of tax you pay on your personal income) which can be up to a maximum of 47% including the Medicare levy. Any earnings you receive on your contributions once they are in your super account are also only taxed at up to 15%. Case study examples Here’s a few examples of how carry forward concessional contributions could benefit you. Example 1: Tax savings John, a 50 year old with a total super balance under $500,000. He receives a bonus at work and decides to use the bonus to make additional concessional contributions to super including unused amounts from the previous five financial years. This not only helps him save more for retirement but also reduces his taxable income and tax liability for the year. Example 2: Boosting retirement savings after a career break Mark took a career break in his early 30s to care for his children. When he returned to work, he wanted to catch up on his super contributions. His total super balance was $400,000. The carry-forward rule allowed him to use the unused cap from up to five previous financial years when he wasn’t working. He did this by making regular salary sacrifice contributions through his employer which helped him rebuild his super balance more quickly as well as providing additional personal income tax savings. Example 3: Accelerating retirement savings close to retirement Lisa, who is in her late 50s, is planning to retire in a few years. She realises her super balance is not as high as she’d like it to be at $300,000. Carry forward concessional contributions enable her to decrease her tax and increase her super savings in the final years before retirement, giving her a better lifestyle in retirement. She does this by making salary sacrifice contributions through her employer. Eligibility rules for carry forward concessional contributions To make a carry forward concessional contribution, there are specific conditions you need to meet: You need to be under the age of 75 – your contribution must be received by your super fund on or before 28 days following the end of the month you turn 75. Your total super balance needs to be less than $500,000 on 30 June of the previous financial year. You can only carry forward unused concessional contributions from 1 July 2020. Unused concessional cap amounts can only be carried forward for five financial years until they expire. Eligibility criteria for super contributions, including carry forward concessional contributions, can change over time. It’s essential to check with the Australian Taxation Office or consult a financial adviser for the most up to date information. Calculating your carry forward concessional contribution amount Check your previous 30 June total super balance with the ATO. This is available via the MyGov website. You want to ensure your total super balance is under $500,000 as at the previous 30 June. Once you login to your account, you can also use MyGov to work out the amount of unused concessional contributions cap that is available. Important things to consider for carry forward concessional contributions Keep in mind that carry forward concessional contributions are part of the concessional contributions cap, which includes employer contributions (such as super guarantee and salary sacrifice contributions) and personal contributions that you claim as a tax deduction. When determining the amount of unused concessional contributions cap that is available for the current financial year, consider any future concessional contributions you intend to make. It’s also important to remember that you can’t access your super until you meet a condition of release, such as reaching age 65 or age 60 and either retiring or ceasing work. To use up carried forward concessional cap amounts, you may want to make salary sacrifice or personal deductible contributions to super. How do super bring forward rules differ to carry forward concessional contributions? Super bring forward rules Super bring forward rules relate to after-tax contributions, allowing you to contribute more into super in a shorter period. Under these rules, you can bring forward up to two years’ worth of non-concessional (after-tax) contributions. The annual non concessional contributions cap is $120,000 for the 2025-26 financial year. However, using the bring forward rule, you could contribute up to $360,000 if eligible. If your total super balance is less than the general transfer balance cap of $2.0 million, you may be eligible to make non-concessional (after-tax) contributions. Depending on your total super balance you may be able to use the bring forward rule. Carry forward concessional contributions Carry forward concessional contributions are for before-tax contributions, enabling you to make up for past years where you may not have utilised all your concessional contribution caps. Generally, concessional contributions reduce your personal taxable income and tax payable. Ready to make a carry forward … Read more

Australian housing values rose another 0.6% in June, marking a fifth straight month of growth since conditions flattened out through the end of last year. Demonstrating the broad based nature of the upswing, monthly gains were recorded across almost every broad region of Australia, with Hobart the only region to see a month on month fall. The first rate cut in February was a clear turning point for housing value trends. An additional cut in May, and growing certainty of more cuts later in the year have fuelled housing sentiment, helping to push values higher. Although value rises have been broad based, the quarterly pace of growth, at 1.4% remains mild compared to mid-2023 when the national index was rising at the quarterly rate of 3.3%. Current growth levels could be described as tepid compared with the extreme 8.1% quarterly rate of growth recorded through the height of the pandemic. Across the individual capitals, quarterly growth was led by Darwin, with dwelling values jumping 4.9%, enough to take dwelling values to a new record high, finally surpassing the mining boom peak recorded just over 11 years ago in May 2014. Outside of Darwin, the quarterly trend across the capitals was led by Perth and Brisbane, the same markets which have led the five-year growth trend, with values up 81% and 75% respectively since June 2020. Although the quarterly pace of growth still favours regional Australia, at 1.6%, compared with the combined capitals at 1.4%, it is looking increasingly likely that the quarterly growth trend will once again favour capital city markets over the coming months. In fact, the last two months have seen the combined capitals record a slightly higher rate of capital gain than regional markets. The housing rebound is occurring against a backdrop of relatively low home sales, with turnover through the first half of the year tracking at an annualised pace of 4.9%, slightly below the decade average of 5.1% Although demonstrated demand is tracking slightly below average, advertised supply is scarce, creating a more balanced market for buyers and sellers. Advertised stock levels were tracking -5.8% below the same time a year ago and -16.7% below the previous five-year average. Low inventory levels are supporting an improvement in selling conditions, which can be seen in auction clearance rates, which rose to slightly above the decade average in the last two weeks of June, holding around the mid-60% range. Turning the focus to rental conditions, rental growth has continued to ease across most of Australia, with the national rental index rising 1.3% through the June quarter, the lowest Q2 change since 2020. The slowdown in rental growth is more visible in the annual trends, where national rental growth has eased from a peak of 9.7% in November 2021 and tracked at more than 8% between July 2021 and May 2024. The national rental index was up 3.4% through the financial year, the lowest annual increase since February 2021. Slower rental growth comes despite vacancy rates consistently holding around the mid-1% range, well below the pre pandemic five-year average of 3.3%. Rental affordability is a key factor keeping a lid on rental growth. Assuming the median rent and median household income, rental households are now dedicating around one third of their pre-tax income to paying rent. As the period of COVID ‘catch up’ migration comes to an end, and recent temporary migrants head back overseas, net overseas migration has reduced close to pre pandemic levels. Because most recent overseas arrivals rent, slower rates of net overseas migration are also contributing to the slowdown in rental demand. Now let’s take a look at housing conditions across each of the capital cities Sydney dwelling values rose 1.1% through the June quarter, adding just over $13,000 to the median value. The quarterly gain is up from a 0.8% rise in Q1 and a -1.4% decline through the final quarter of 2024. Through the first half of the year, Sydney home values have increased by 1.9%, mostly fuelled by houses (+2.5%) rather than units (+0.4%). In some good news for renters, rental growth has eased, with the annual change in Sydney rents reducing to 1.9%, down from an annual change in 2023/24 of 7.4% and 11.1% through 2022/23. The easing in rental appreciation comes despite vacancy rates easing to 1.8% in June, well below the decade average of 2.9% Melbourne dwelling values rose 0.5% in June, taking the quarterly change to 1.1%, up from 0.7% in Q1 after three quarters of decline. Through the first half of the year, Melbourne dwelling values have increased by 1.8%, adding just over $14,000 to the median dwelling values. Despite the recent gains, Melbourne values are still 3.9% below the record high set in March 2022. While growth in housing values has accelerated, the trend in rental markets is losing steam, with annual rental growth of just 1.2% recorded across Melbourne, the lowest annual rate of growth July 2021. Housing values across Brisbane rose by 0.7% in June, to be 2.0% higher over the quarter, adding approximately $18,000 to the median value of a dwelling over the past three months. The market is up 7.0% over the financial year, led by a 10.9% jump in unit values while house values rose by a smaller 6.3%. The stronger result comes back to worsening affordability constraints deflecting demand towards the unit sector, along with very low supply levels across Brisbane’s unit market where listings are tracking 33% below the previous five-year average. Annual rental growth has slowed across Brisbane, with dwelling rents up 3.8% in 2024/25 and holding below 4% annual growth since November last year. Adelaide dwelling values rose by 0.5% in June to be 1.1% higher over the June quarter. The monthly and quarterly result were a slight underperformance compared with the national growth rate of 0.6% and 1.4%, respectively. Although growth conditions have accelerated from the March quarter, when values were up 0.5%, the annual rate of growth, at 8.0% was well down on … Read more

2025 financial year in review A strong year for share returns Global shares delivered very strong returns in the past financial year. Optimism on the promise of ‘Artificial Intelligence’ (AI) as well as progress towards lower global inflation and interest rates have been the key positive drivers for rising global share prices. These strong share gains come despite the tragic Russian-Ukraine War as well as the Hamas-Israel and the Israel-Iran conflicts which are all brutal and seemingly never ending. Global shares (hedged) recorded a 13.3% return for the year in local currency terms. The clear outperformer has been Wall Street. US shares as represented by the S&P 500 delivered a 15.2% return for the financial year (Chart 1). The returns from Australian shares at 13.7% (ASX 300) were very strong but trailed in Wall Street’s wake. There was one compensation in that the weakness in the Australian dollar over the past year allowed global shares (unhedged) to deliver an exceptionally strong 18.4% return. Chart 1: Share returns for 2024-2025 Source: LSEG DataStream. However, this was not an easy climb to historic highs for both the American and Australian share markets in the last year. The sharp share price falls recorded from March to April 2025 came in response to US President Donald Trump’s aggressive agenda on imposing tariffs. From his first day in the Oval Office on 20 January 2025 threatening Canada and Mexico to the impositions of a 145% tariff on China, 20% for Europe and 10% for Australia in April, President Trump has been menacing America’s trading partners as well as gambling with the US economy. Given that tariffs are a tax that increases consumer prices, the risk of a sharp rise in US inflation and corresponding increase in US interest rates sent Wall Street into a tailspin. Fortunately, sanity briefly returned with President Trump announcing a 90 day pause to allow tariff negotiations. However, if the tirades against America’s trading partners resume on President Trump’s “Truth Social” after the 9 July deadline, then investors will have to strap their seatbelts on for another rollercoaster ride. Even with these political headwinds, enthusiasm for technology has been the key positive driver of Wall Street’s strong returns. Tesla led the charge with a 60% price gain followed by Meta/Facebook (46%) and then the largest AI chipmaker Nvidia with 28%. These extraordinary gains allowed the US technology focused NASDAQ 100 Index to post a 15.7% annual return. Notably in an Australian context, only Commonwealth Bank shares with a 45% price gain for the year could deliver a similar result to the American technology companies. There were also notable disappointments with large price falls for resource shares such as BHP (-14% decline) and Fortescue (-29%), as well as CSL (-19%). Table 1: Asset class returns in Australian dollars – periods to 30 June 2025 Asset class Returns 1 year 3 yrs (pa) 5 yrs (pa) 10 yrs (pa) Cash 4.4% 3.9% 2.3% 2.0% Australian bonds 6.8% 3.9% -0.1% 2.3% Global bonds (hedged) 5.4% 2.3% -0.6% 2.0% Global high yield bonds (hedged) 8.3% 7.8% 4.1% 4.5% Global listed infrastructure (hedged) 14.7% 5.1% 7.0% 6.7% Global property securities (hedged) 8.4% 2.2% 4.4% 3.0% Australian shares 13.7% 13.3% 11.8% 8.8% Global shares (unhedged) 18.4% 19.2% 14.8% 11.8% Global shares (hedged) 13.3% 15.8% 12.6% 9.7% Emerging markets (unhedged) 17.5% 11.5% 7.9% 6.5% Past performance is not a reliable indicator of future performance. Sources: FactSet, MLC Asset Management Services Limited. Benchmark data: Bloomberg AusBond Bank Bill Index (cash), Bloomberg AusBond Composite 0+ Yr Index (Aust bonds), Bloomberg Global Aggregate Bond Index Hedged to $A (global bonds), Barclays US High Yield Ba/B Cash Pay x Financials ($A Hedged) (global high yield bonds) FTSE Global Core Infrastructure 50/50 Index Hedged to $A, FTSE EPRA/NAREIT Developed Index (net) hedged to $A (global property securities), S&P/ASX300 Total Return Index (Aust shares), MSCI All Country World Indices hedged to $A and unhedged (net) (global shares), and MSCI Emerging Markets Index (net) unhedged to $A (emerging markets). European shares made a solid 8.4% return for the year with the benefit of the European Central Bank cutting interest rates by 1.75% to 2%. Asian share markets delivered a mixed performance across countries. Japan’s share market made a muted 2.3% return for the year given the Japanese central bank has been assertively raising interest rates to combat inflation. Taiwan was similarly subdued at a 3% return given geopolitical concerns. Yet Chinese share prices made a robust recovery with a 34% annual gain (MSCI China in local currency). Lower interest rates and assurances from China’s government of more support for economic activity have countered concerns over China’s weak property market. This strength in Chinese shares was a key contributor to the strong 12.9% return for emerging markets in local currency terms. Australian bonds provided a strong 6.8% annual return with the support of lower inflation and the Reserve Bank of Australia (RBA) cutting the cash interest rates by 0.5% to 3.85% in 2025. Global bonds (hedged) delivered a reasonable 5.4% return. Bond markets have experienced turbulence in the past year given the shifting sands on economic activity, inflation and political risks. Global high yield bonds (hedged) made a very strong 8.3% annual return as investors considered that the elevated yields available are attractive for income despite very narrow credit spreads. The ‘cost of living’ is still challenging for consumers Global inflation has gradually fallen in the past year (Chart 2). Milder price rises for consumer goods such as clothing and electrical equipment have kept inflation in check. Notably inflation in both Australia and the US has fallen from above 3% in mid-2024 towards the low 2% inflation levels in mid-2025. China as the ‘factory to the world’ in producing consumer goods has been a source of this lower global inflation as well as experiencing its own minimal inflation given modest economic growth. Chart 2: Global consumer inflation Source: Australian Bureau of Statistics, National Bureau of Statistics of China and US Bureau of Labor Statistics. Consumers around the world … Read more

Wills aren’t just for later in life and you should really have one when you start earning. And as money and family matters can be complex, it makes sense to get help. Who needs a Will anyway? A Will is something you might think you only need once you’re a millionaire or close to retirement. But it’s important to get your Will and your whole estate plan organised as soon as you start earning money of your own. Why? Because when you’re on the payroll, your super savings will soon start adding up. And without sorting out an estate plan, you can’t be sure your assets will be passed on to the right people when you die, including your super savings. Perhaps you’re on your fourth or fifth or even your 20th job by now and still don’t have an estate plan. It probably isn’t keeping you up at night but there could be other triggers and life stages that make your estate plan far more important: Buying a home – having a Will makes it crystal clear what will happen to a home you own when you die. You may want to make sure loved ones can continue to live there or have this part of your wealth passed on to the right people. Having kids – your Will isn’t just about money, it’s also about people. If you have children, a Will can help to make sure they’re looked after and cared for by the people you have chosen if the worst were to happen. Getting married or moving in together – sharing your life with a partner often means sharing wealth too. Whether you’re married to your significant other or not, it’s important to make sure they’re looked after if you die, along with anyone else you want your wealth to go to. Separation and divorce – when relationships end, money matters can get tricky. And no matter how simple and amicable things are, an estate plan is an important way to make sure wealth and assets are passed to the people you choose, particularly if there are new partners and/or children involved. Your parents die – when your parents die with a proper estate plan, transferring their wealth is going to be easier to manage. If they don’t have one, you and any siblings can get caught up in a long and expensive process of sorting everything out. It’s a big reminder of why a good estate plan is so important to the ones you love. Making a Will A Will is a very important legal document. It covers what you want to happen to your assets – like cash in the bank, shares, investments or properties you own and any personal items. In your Will you’ll need to include who you want to be your executor. This is the person, or it can be an organisation, who will carry out the instructions in your Will. This person is making a big commitment of their time as well as taking responsibility for distributing assets, communicating with everyone and carrying out your wishes according to your Will. They’re also going to be the one dealing with any issues that come up if there are disputes about your Will. What happens if you don’t have a Will? When someone dies without a Will, it’s called intestacy. What happens then will depend on the intestacy laws of the relevant state or territory. These laws will determine how assets are divided and who they go to. To get this sorted will usually involve a fair bit of work with lawyers who’ll often be working based on an hourly rate. There’s potential for these legal costs to add up over time and it can sometimes take years to resolve things, particularly for complex estates and family situations. The dangers of going DIY There are plenty of DIY Wills available – from hard copy kits to online forms but they’re not for everyone. If your situation is really simple – no partner, no kids, limited wealth and assets, then a good online service might be enough for you to come up with your own estate planning documents. But for a lot of family situations and estates, online and DIY Wills just aren’t going to cut it. A dynamic form, no matter how well it’s put together, can’t help you understand the tax implications of how your money is shared out, for example. A DIY solution can also get tricky when it comes to executing your Will. You’ll probably get detailed instructions for how to do this, but if they’re not followed to the letter, your Will might not be legally binding. This may leave your loved ones in the same situation as if you didn’t have a Will at all. Your Will is just part of the plan Your Will isn’t the only part of your estate plan you need to get organised. Your super isn’t always passed to your loved ones through your will so you’ll need to make a separate arrangement for this. It’s called a beneficiary nomination and you can find out all about it by exploring what happens to your super when you die. If you have life insurance in your super account you’ll also need to make arrangements for nominating beneficiaries with your provider. Another part of your estate plan to think about organising is your enduring power of attorney. This is where you choose someone to act on your behalf and make certain choices if, for example, you’re unable to do this for yourself. If you have an accident or fall ill, your attorney can look after your financial affairs and get things done for you. You can also arrange a separate medical power of attorney to make choices on your behalf about your medical and lifestyle needs if you are unable to make these decisions for yourself. This document goes by different names depending on which State or Territory you’re in. It’s clear that … Read more

One of the keys drivers of happiness in retirement is the peace of mind that comes from financial security. However, US tariff announcements since the start of April have added uncertainty to financial markets, adding an extra layer of complexity for many retirees. Policy positions have fluctuated as tariffs are paused, reversed or adjusted, leaving markets prone to volatility with sharp drops and rebounds. So, what can this market volatility mean for retirees and their retirement income? How does market volatility affect retirees? Market volatility refers to the ups and downs in financial markets due to the size and frequency of changes in investment prices. Many retirees rely on their superannuation for income in retirement, which can fluctuate with financial markets. A fall in the value of your super or savings could mean you outlive your savings or your money runs out sooner than planned. Drops in the market can have a bigger impact in retirement because: Later in life you have less time to recover from poor share market performance or take advantage of lower share prices. Negative returns coupled with withdrawals for pension payments make it harder to recover the value of your investments. The timing of share market falls also matters due to sequencing risk. A more stable option for retirement income  If market volatility is causing worry, there is another income option designed for predictability and peace of mind. Guaranteed lifetime income products can offer the stability of guaranteed regular income for life, that continues regardless of market conditions. Whether the market is up or down, your income from these products remains unaffected, providing confidence that you can meet your financial needs in the future. For retirees, this reliability is invaluable, providing peace of mind that a portion of your regular income won’t be affected. Combining the best of both worlds Having a mix of income sources can allow you to experience both financial stability and growth opportunities. Combining a guaranteed income option like a Fixed or CPI-linked lifetime annuity with an account-based pension (from your super fund) provides flexibility when dealing with unpredictable market conditions. Guaranteed lifetime income for stability: Fixed or CPI-linked lifetime annuities can act as your financial safety net, ensuring that essential expenses like groceries, utilities and healthcare are always covered, even during volatile times. Market exposure for long-term growth: Allocating part of your retirement income to market based options like account-based pensions allows you to reap the benefits of long-term growth once market volatility normalises. Market-linked lifetime annuities can also allow you to enjoy the growth potential of market exposure whilst providing guaranteed regular income. By blending these options, you can maintain a strong financial foundation while also leaving room for future growth. Making the right choice for your retirement  US tariff uncertainty and market volatility highlight the importance of building a well diversified income strategy that fits your unique retirement needs. The right mix of options can help you weather periods of economic uncertainty while still enjoying the benefits of market growth. Talk to a financial adviser today to discuss your individual objectives, financial situation and needs.   Source: Challenger

We’re all familiar with the concept of super. It’s that portion of our salary that employers are required to contribute to a super fund on our behalf, with the goal of providing us with financial security in retirement. But what not everyone is aware of is that relying solely on your employer’s contributions might not be enough to ensure a comfortable retirement. That’s where salary sacrificing into super comes into play. Here, we’ll explore the ins and outs of salary sacrificing into your super and help you determine if it’s worth considering as part of your financial strategy. What is salary sacrificing into super? Salary sacrificing into super involves redirecting a portion of your pre-tax salary into your super fund. Instead of receiving this portion as part of your take home pay, it goes straight into your super account. Here’s how it works: Agreement – You and your employer agree to salary sacrifice a specific amount or percentage of your pre-tax salary into your super fund. This amount is in addition to the compulsory employer contributions. Pre-tax – The sacrificed amount is deducted from your gross (pre-tax) salary, reducing your taxable income. This means you pay less income tax on your take home pay. Super contributions – The sacrificed amount is added to your superannuation contributions, helping you build a more substantial retirement nest egg. Benefits of salary sacrificing into super Now that we’ve covered the basics of salary sacrificing into super, let’s explore the benefits of this strategy: Tax savings – One of the primary advantages of salary sacrificing into super is the potential for significant tax savings. The sacrificed amount is taxed at the concessional super tax rate of 15%, which is typically lower than the tax rate you pay on your income. This means you get to keep more of your money while still saving for retirement. You may pay additional 15% tax on all or part of your salary sacrifice if your income and concessional super contributions total more than $250,000. In this case, the effective tax on your contributions may be up to 30%, which is still less than the highest tax rate of 45%. Faster retirement savings growth – By contributing more to your super fund through salary sacrificing, you’re accelerating the growth of your retirement savings. Your money is invested over an extended period, potentially leading to more substantial gains through compound investment returns. Compound investment returns refer to earning money not just on the original investment but also on the accumulated growth gained over the period since the investment was made. Lower taxable income – Since the sacrificed amount is deducted from your pre-tax salary, your taxable income is reduced. This can have several additional benefits, such as qualifying you for certain concessions, reducing the Medicare Levy and helping you stay in a lower tax bracket (salary sacrifice super contributions are not subject to the Medicare Levy or the Medicare Levy Surcharge. This can lead to significant tax savings, especially for higher income earners.) Automatic savings – Salary sacrificing is an automated process. The money is taken out of your pay before you even see it, which can help you build disciplined savings habits. Long-term financial security – Salary sacrificing into super is a smart way to attain long-term financial security during your retirement years. It provides peace of mind, knowing that you’re taking proactive steps to build a comfortable retirement nest egg. Things to consider before salary sacrificing into super While salary sacrificing into super offers numerous advantages, it’s essential to consider some factors before taking the plunge: Contribution caps – Salary sacrifice contributions count towards your concessional contribution cap. The annual limit for concessional contributions, including your salary sacrifice contributions, into super without incurring additional tax in Australia is $30,000 for 2025-26. The cap limits change over time so it’s important to be aware of the current contribution cap limit. Those who have a superannuation balance of less than $500,000 on 30 June 2025 may have a concessional cap of up to $167,500 in 2025/26. This includes the current annual $30,000 cap, $25,000 for 2020/21, $27,500 for 2021/22 to 2023/24 and $30,000 in 2024/25. This is based on the five-year carry forward rule. Your financial goals – Consider your overall financial goals when deciding how much to salary sacrifice into super. You should strike a balance between your short-term and long-term financial needs. If you have pressing financial commitments, it might not be wise to sacrifice too much of your current income. What kind of lifestyle do you envision for your retirement? The more comfortable you want it to be, the more you may need to save. Reduced take home pay – Salary sacrificing means you’ll have less money in your take-home pay. This can be challenging if you’re on a tight budget or have immediate financial needs, such as your mortgage. Investment risk – Your salary sacrifice contributions are invested, and like any investment, they come with inherent risks. Depending on market performance, your super balance can fluctuate. Access to funds – Remember that once your money is in your super fund, you generally can’t access it until retirement or you meet certain conditions. Ensure you have enough liquid assets outside of super, such as cash or shares, to cover emergencies or short-term financial needs. Super is designed for retirement savings, so accessing your money before you reach preservation age can be challenging. Since 1 July 2024, the preservation age is 60. Seeking advice – It’s a good idea to consult with a financial adviser or accountant before implementing a salary sacrifice strategy. They can help you assess your unique financial situation and provide personalised recommendations. Is it worth salary sacrificing into super? Now that we’ve examined the pros and cons of salary sacrificing into super, the question remains: is it worth it for you? The answer depends on your individual financial circumstances and goals. Do you have outstanding debts or immediate financial needs that should take priority … Read more

How worried should I be about running out of money when I stop working? It’s not unusual to be worried about running out of money when you stop working. A recent survey of Perpetual members found that 37 per cent of respondents approaching retirement were continuing to work because they did not have enough retirement savings. A similar percentage disagreed with the statement that “I have sufficient savings, in combination with any age pensions entitlement, to fund a comfortable retirement”. While it’s important to acknowledge these fears, it’s worth noting the survey revealed a higher prevalence of these concerns were among members still in the workforce. After full retirement, 86 per cent of respondents either slightly agreed, agreed or strongly agreed that they possessed adequate savings, combined with the age pension, to sustain a comfortable retirement. Minimum account-based pension payment rates As we approach retirement, we should prepare ourselves for the transition from accumulating savings to accessing them, such as starting an account-based pension. During this phase, we should carefully consider the amount and frequency of payments that we would like to receive. With the exception of a transition to retirement income stream, there are no maximum payment amounts. But there are minimum payment requirements that are based on our age. It’s crucial to note that these payments will continue until the balance is exhausted. Hence, the need to carefully consider the payment rate. Age range Percentage of account balance Under 65 4% 65-74 5% 75-79 6% 80-84 7% 85-89 9% 90-94 11% 95+ 14% How long will my savings last? The table below provides an estimate of the years your retirement savings may last based on a fixed starting balance, consistent investment returns, and varying annual payment rates. Take, for instance, a starting balance of $250,000 with a 4 per cent return. An annual payment of $10,000 may keep you covered for a century, while a yearly payout of $40,000 may drain your savings in just seven years. Starting balance Investment returns Annual payment Years savings may last $250,000 4% $10,000 100 $250,000 4% $20,000 17 $250,000 4% $30,000 10 $250,000 4% $40,000 7 Source: Perpetual. Assumes annual payment is spread evenly over the year and the investment return is applied to the average account balance for the year. Minimum pension payment rates are ignored. The next table provides estimates on how long retirement savings may last, assuming a constant starting balance, annual payment and different rates of investment returns. As a general rule, the higher your investment returns, the longer your savings will last. But higher investment returns also come with higher risk. It’s crucial to find a balance between risk and return that aligns with your individual circumstances and goals. Starting balance Annual payment Investment returns Years savings may last $250,000 $20,000 2% 14 $250,000 $20,000 4% 17 $250,000 $20,000 6% 22 $250,000 $20,000 8% 42 Source: Perpetual. Assumes annual payment is spread evenly over the year and the investment return is applied to the average account balance for the year. Minimum pension payment rates are ignored. It’s important to note these tables are just estimates. They do not account for certain challenges that retirees may face, including sequencing risk and inflation risk. Sequencing risk can be particularly concerning. A big negative return in the early years of retirement can greatly impact your account balance and future returns. Inflation risk is also a factor, as the purchasing power of a fixed payment rate can decline over time. How the Age Pension helps to manage risks to retirement income Access to the federal government’s Age Pension helps manage these risks. While you may not be eligible for the Age Pension when you first retire, eligibility may arise later on. The Age Pension can help to manage sequencing risk, as payments are not tied to investment market returns, and they may increase if the value of your assets fall. Inflation risk is also addressed, since the pension is indexed to the consumer price index, and longevity risk can be mitigated through ongoing payments for the rest of your life. For further information please speak to your financial adviser. However, as a more general starting point, you can use the Money Smart calculator to estimate: Your super balance at retirement How fees affect your final super balance Source: Perpetual

Did you know there’s a secret weapon when it comes to building financial resilience? Turns out that Australians who have had advice are much more likely to be able to cope in times of market turbulence, according to the 2025 Empowered Australian* report commissioned by Colonial First State. Confidence is one of the key outcomes financial advice offers. The opposite is true for one in three of those who have never received advice. Instead of feeling confident about their financial situation, they say it’s affecting their lifestyle and wellbeing. Something to consider, as while financial markets have bounced back strongly from sharp falls in April, the road ahead may be bumpy. Recent events on the world stage have triggered significant volatility in sharemarkets. It’s in times like this where having access to a financial adviser can make a huge difference. More money in retirement is the hottest advice topic Most retired Australians want financial advice but many aren’t sure how to get it or if they can afford it. Hot topics include: boosting income in retirement getting a better return on investments understanding eligibility for government benefits and estate planning. With that in mind, below are three simple ways to access specialist retirement advice that you may not have considered. Tap into free general advice from your super fund Broad general advice on super and retirement products is made available by super funds to their members. Use your super or pension to pay for advice Did you know you can pay for advice directly from your super or retirement savings? Seven in ten Australians don’t know this, according to the Colonial First State report. With rising costs more of a concern this year than they were a year ago, it’s good to know that comprehensive or indepth personal financial advice with no upfront hit to the hip pocket is available. There are some rules around this to protect your super or retirement savings. The advice must relate to how you could use your super to fund or save for retirement, setting up a pension, or managing investment risk to make your money last longer. Advice could save you thousands of dollars over time without putting a dent in your weekly budget now. Consult a retirement specialist Specialist retirement advice can help boost your retirement income and ensure you don’t miss out on government benefits. One third of all recipients apply for the government Age Pension at least a year later than they could have, research from Retirement Essentials shows – that’s money you won’t get back if you don’t apply on time^. Other government benefits, such as the Commonwealth Seniors Health Card, can be worth thousands of dollars a year in reduced health and medical costs#. * CFS conducted research with 2250 Australians between October and December 2024 on access to financial advice for the 2025 Empowered Australian report. ^ Research on the cost of late applications for the Age Pension and related government benefits from Retirement Essentials and Link Advice, 2024. # Research on Commonwealth Seniors Health Card uptake from Retirement Essentials, 2025. Source: Colonial First State

Online shopping is convenient and the preferred way to shop for a lot of Australians but it comes with a risk. Cybercriminals often target online shoppers to steal their money or their personal details. They do this through a variety of methods, including setting up fake retailer websites, selling products that don’t exist, asking for personal and payment information they don’t need, and installing malicious software (“malware”) on your device. It is important to be alert and be secure when you are shopping online. Once a cybercriminal has your financial details and money you are unlikely to get your money back. Not only will you be disappointed your goods never arrived, you will also have lost the money you paid for the goods. There are many things to think about when using personal devices (e.g. smartphones, tablets, computers and laptops) for online shopping. Follow these security tips to make sure your online shopping experience is secure. Online shopping scams can have serious effects Online shopping scams don’t discriminate. They can affect individuals of any age and businesses of all sizes. How to shop online securely The best way to protect yourself while shopping online is to know how to look for suspicious websites and sellers while boosting your protective security measures. There are many things to be aware of while you shop and after you make a purchase. To help you prepare, we have put together a checklist of the key advice: Shop using secure devices Make sure the devices you use for online shopping have the latest updates installed and are connected to a trusted network. For example, use your home Wi-Fi or (4G/5G) cellular rather than public Wi-Fi. Protect your payment information and accounts Be careful saving payment information on an online shopping account. If you do save payment information to an account, you should turn on multi factor authentication (MFA) to protect it. Where this is not possible, set a long, complex and unique passphrase as the account’s password to help keep cybercriminals out. You could also use a password manager to generate and store passwords for you. Use trusted sellers Research online shopping websites before you buy and stick to well known, trusted businesses. Know the warning signs Extremely low prices, payments through direct bank deposits and online stores that are very new or have limited information about delivery, return and privacy policies can all be signs of a scam. Use secure payment methods Never pay by direct bank deposits, money transfers or digital currencies such as Bitcoin, because it is rare to recover money sent this way. You should pay by PayPal or with your credit card. You may want to set up a second card with a low credit limit and keep it specifically for online shopping. This will help minimise financial losses if your card details are compromised after shopping online. Don’t engage and report suspicious contact Be aware of any strange phone calls, messages or emails you get about online orders. It could be someone trying to get you to share your personal or financial details. If someone contacts you about an order you don’t remember placing, it could be a scam. Stop contact and reach out to the store using the details on their official website to check. Watch out for fake delivery scams Don’t let your guard down while you’re waiting for your goods to arrive. Cybercriminals can send fake parcel delivery notifications with links that could trick you into downloading malware or giving away your personal details. If you receive such a message, do not click on the link. Delete the message immediately. You can contact the seller or the courier company using the details on their official website. Scamwatch has examples of what these fraudulent text messages may look like. Take additional precautions It is always a good idea to limit the amount of personal information that you use on websites. Ask yourself if the website really needs this extra information or an account to complete the transaction. Visit www.scamwatch.gov.au for more information on online shopping scams. Source: Australian Cyber Security Centre (ACSC)

If you’ve ever had a job, then super is going to be on your radar. Knowing what it’s all about is the first step to making it work for you. Super can help you save big Super is your savings account for retirement. But well before you retire, your balance could be in the hundreds of thousands of dollars. While you can’t spend it now, a sum of money that big has got to be important to you. So it makes sense to know how it works and what you can do with it before you retire. What is super? Superannuation (super for short) is your savings for your time in retirement. It’s a sum of money you can spend when you’re no longer earning an income from paid work. Where does super come from? When you’re working, your employer is usually required by law to pay a certain percentage of your salary into your super. This is called the Superannuation Guarantee (SG) and the good news is that it’s going up by 0.5% each financial year until 1 July 2025 when you’ll be getting 12% saved into your super for each dollar you earn. These SG savings aren’t taken out of your salary like income tax. Super contributions are an extra amount included in your employment package that your employer saves into your super fund on your behalf. What happens to your super? Super is your money and you get to control what happens to it, within certain limits. This starts with choosing a super fund which is similar to a savings account, except you can only withdraw the money under certain circumstances. Just like your employer is legally responsible for paying your SG contributions, super funds have a responsibility to look after your money and help you invest it so your savings can grow faster. They get to charge fees for doing this, which are paid straight from your super account. Why do you need super? When you retire, you may be able to get some income from the Age Pension, an income support payment from Centrelink. But depending on your plans for retirement, how much you spend from day to day, and whether you rent or own your own home, the Age Pension may not be enough. Your super savings are there to give you the income you need to choose how you want to live in retirement. It can come in handy before you retire too. Super can help you learn about investing and even help you save for a home. Keep reading to find out more. Super power: 4 amazing things you can do with your savings Super doesn’t have to just sit there, waiting for you to spend in retirement. It can actually work really hard for you and help you get ahead in more ways than you think, like saving for a home. Invest it Why make investment choices in super when it’s easier to just get on with life? Here are three great reasons: Your super is a lot of money – unless you’re a champion at choosing to save money from your income, super is likely to grow into the biggest savings balance you’ll have in your lifetime. Why wouldn’t you make the most of it? Super funds make it easy to invest – super funds are required to have an investment strategy and make decisions they believe are in the best interests of their members. This means they do a lot of the work for you in coming up with investment options that suit your needs when it comes to taking risks and earning a decent return. It doesn’t mean there’s no risk and you can still lose your money though, so be sure to understand any investment decision before you make changes. Compounding is the easiest money you’ll ever earn – thanks to the magical multiplying effect of compounding, every extra dollar added to your super savings from your investments is another dollar that can earn you even more. Save it for … a home deposit If retirement seems too far away, there could be another goal on your list your super savings can help with. You can’t put it towards a car or your next big trip overseas, but what if you could save faster for your new home through your super? The First Home Super Saver Scheme (FHSSS) could see you on your way to owning your first home sooner: You can make extra payments into your super and keep them there until you’re ready to buy. While you do this you can be saving on tax – both on the money you’re earning from investing your super savings which is taxed at 15% and from the tax you could save by making extra payments into super from your pre-tax salary – these are called concessional or salary sacrificed contributions. Unlike a savings account which earns a fixed rate of interest, you can choose how to invest your super for a better return so your savings have the potential to grow faster. Save it for … a rainy day As we’ve seen during COVID-19, financial hardship can affect people for the most unexpected reasons. And during the early months of the pandemic, the Federal Government made it possible for people to withdraw their super if they had lost their income and didn’t have savings to fall back on and pay their bills. The window for this early withdrawal of super has closed now. But there are some other circumstances where you can apply to the ATO to access a limited amount from your super before retirement when you are in need of financial help to: Stop you from losing a home you own because you can’t pay the mortgage or council rates. Cover the cost of medical treatment, palliative care and/or disability services for you or a dependant. Cover the cost of a funeral or burial arrangements for a dependant. You can also apply to your … Read more