Is 10% to the PSS the only option you have - don't miss out on deductions because you assume so?

Financial Planner Luke Smith joined 2CC Talking Canberra 1206AM in Money Matters, which aired on Friday 12 April 2024. Leon Delaney returns to the studio this week after his extended Easter break, lucky Leon! This week’s show considers misconceptions around the Public Sector Superannuation Scheme (PSS). Many government employees have a PSS Super or an equivalent military defined benefit account. Sadly, many PSS members are not making the most of their retirement savings options and this episode explores why. Thanks for joining us live on 2CC, your favourite podcast service or on KZbin.
Key topics covered include:
- What is the PSS?
- How does the fund calculate your benefit?
- Why is a your contribution important to this benefit?
- Did you know you can make a contribution to another fund and get a tax deduction outside of - - PSS? Many PSS members miss out on a tax deduction!
- What is the current tax deductible or Concessional Contribution Limit for this year? Did you know it’s rising to $30,000 on 1 July 2024?
- How do I work out my Concessional Contribution Limit?
- You also need to lodge your ‘Notice of Intent to claim a tax deduction’ for your contribution to super with the super fund you make the contribution too.
- Are there other strategies you can use like Super Splitting which might help you retire sooner?
Luke shares his top tips when thinking about making the most of the PSS and your retirement.
Luke as a Financial Planner can help you set up a financial planning strategy to help you achieve your personal financial goals, including investment, super and retirement. Make an appointment to confidentially discuss your goals. Call Envision Financial Services on 6260 4749. You can use the contact us form to make an appointment, for a confidential discussion about your situation.
Luke will return to 2CC to talk about other ‘Money Matters’ soon. You can also catch up with ‘The Strategy Stacker - Luke Talks Money’ podcast at a time that suits you.
We look forward to your company again and Luke’s book Smart Money Strategy is out now. For more information visit: thestrategystacker.com.au/
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What to hear about a specific financial planning topic?
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[@sonyasj74]

Thank you so much Luke. There is so much information out there about superannuation, but not much about defined benefit schemes. They work a little differently which financial experts don't seem to talk about too much. I'm with PSS and I find your information priceless. Clear, simple information in plain English that everyone can understand. You're awesome. Don't stop doing what you do 👍⭐

[@thestrategystacker]

Thankyou for your comment. We will keep chipping away and adding value where we can.

[@Colincarpenter2]

Correct and I honestly thought it was common knowledge.. I admit I was young and didn't know/care about super in the first 5- 6years of being in the PSS, so I made 2% , thankfully I had a bloke sit me down in a lunch room one day and explain it simply, 10% of the government wins.. I changed it that afternoon.. we are SO fortunate to be in the PSS, I have gone from a APS 3 to an EL2, my ABM at least 55 will be around 8.5 which rough calc will allow me to retire at 55 on a pension of around $120k a year...very very grateful.

[@thestrategystacker]

To many people don’t understand and the fund does a horrible job of explaining the long term impact. Time is the one thing you cannot make up for in that fund.

[@Colincarpenter2]

@@thestrategystacker 100% agree, I was lucky that I was young enough to rebuild and catch up, I want to retire at 55 so I can't get a ABM of 10 but it is ok, it is on me

[@raymondrumbundaberg]

It's a very familiar story. I think alot of people fell into the trap. If only the resources that are available today were available back then, we would have made the most of it much sooner.

[@Colincarpenter2]

@@raymondrumbundaberg yeah I have just so thankful I was told by someone willing to tell me. when you are young you don't care...well I didn't. but at 55 my abm is about 8.8 so it isn't too bad will make it work

[@thestrategystacker]

Thanks Sonya appreciate it.

[@michaelmorgan3421]

We all should be public servants around the water cooler

[@thestrategystacker]

The PSS has saved a generation of workers that’s for sure