Concessional contributions - what’s new

[@walkingtofi]

Thank you for the update. After watching your informative content, my wife and I have been contributing extra into Super to take advantage of the tax reduction benefits and compound interest.

[@AboutRetirementTV]

So glad to hear that 😃

[@miraja8298]

Thanks for explaining this clearly. It might be worth pointing out that for those on a Salary Package like me, my take home pay will reduce as a result of the increase of super contribution to 11.5%

[@brutexrp7207]

Your videos are really helpful. What would the impact on aged pension be if you are single and had $300,000 in a pension based account that you draw 4% of each year (is $12,000) and earm $11,000 from part time employment. Thank you in advance.

[@AboutRetirementTV]

this is probably a video that will help you to calculate your Age Pension in your situation: kzbin.info/www/bejne/qIm8mJxrdqaNe9U

[@johnm7251]

Do you have any information on retiring without super and managing your own investments from a tax perspective ? I am planning to wind up our SMSF and managing outside super to reduce fees

[@AboutRetirementTV]

Not really, as nobody ever asked that question. But this is an interesting topic, maybe I will try to see what I could prepare for you John

[@28bucket2]

Me to taking money from super , I'm using dividends and franking credits to off set the tax.

[@waynev5097]

Sorry but I don't understand your calculation for John. I think you should have a quick look at them as you may have made an error.

[@AboutRetirementTV]

I probably should have disclosed this - all calculations were prepared used MoneySmart website, here is the link moneysmart.gov.au/grow-your-super/super-contributions-optimiser. It takes into consideration fees payed to the super fund, so maybe this is the reason for discrepancy you are seeing.

[@waynev5097]

Ok - I have reviewed the money smart calculator. The most important detail is that the results are in today's (present value) dollars. The calculator has made various assumptions including adjustments for CPI (which is appropriate). In actual dollars John will have a lot more than stated in the video....... but in today's dollars the amount is as you say. I am a big big fan of investing in superannuation as a long term investment strategy4 - and once you take into account the upfront tax benefits during the accumulation phase and the nil tax during the pension phase I cannot see any other forms of investment that even gets close.

[@AboutRetirementTV]

@@waynev5097 agreed 100%, super/pension is the best investment instrument for its tax beneficial treatment, the only issue is that rules keep changing and you are not in control what you can or cannot do with super, which is done on purpose.

[@kparker1615]

You said change number 2 was the maximum concessional cap is $30,000 - so in the case of John, how much extra would he have to contribute when you say he 'maximises is concessional cap', surely not to put in an extra $30K a year? If you are going to provide this as an example you need to give the figures, this is too vague and numbers don't make sense. Also, if you maximise your super by putting in extra, that takes away from your ability to ever buy or own your own home, and it is the one thing that will guarantee you a good retirement, you can do without a lot of money, but you cannot do without a roof over your head. Also, even at the maximum rate in 42 years the 'staggering' $1,557,271 - will not be anywhere near the same value as it is today, it will be like having an equivalent of a couple of hundred dollars. We came into $500,000 before COVD, in a matter of 4 years, we can buy half today what we could have with the same money just 4 years ago! The first priority before super should be home ownership... then and only then Super! That is until the government figures out a way to get their hands on it - which will eventually happen.l