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Superannuation and planning your future

Superannuation is one the most common ways for Australians to save for their retirement, according to the Australian Taxation Office. Superannuation, also known as super, is money that is set aside by you or your employer during your working life and can be accessed when you’re older to fund your retirement.

Currently, the Australian Super Guarantee is 11.5 percent of your regular income, as per information on the Fair Work Ombudsman website. Some companies and organisations pay more than 11.5 percent into employees’ super accounts, depending on the employment contracts.

You can also choose to add more money into your super fund on top of the required amount if you want to, by having an agreement with your employer that they will pay some of your wages as super contributions instead of directly to you. This is called salary sacrificing and can reduce the tax rates paid for your income.

Alternatively, you can make a once-off voluntary contribution in which you pay money into your super, although some restrictions apply. This can help grow your super balance but this money, as with other super contributions, cannot be accessed until you are eligible to withdraw your super.

During your working life, the super fund looking after your money will invest your employers’ super contributions and salary-sacrificed funds. The return on those investments will grow your super balance over time.

You can choose whether to have a managed fund, through an industry or retail group that will invest your money on your behalf, or a private self managed super fund where you choose how your money is invested.

Regardless of your superannuation situation, only having retirement savings and super as your sole form of retirement funding is like having all your ‘eggs in one basket’. Other investment options that could diversify your savings include stocks and investment properties.

Get expert advice from a financial adviser about how superannuation fits in your retirement plan and how you can ensure you won’t run out of money when you retire.

Call the Aged Care Guide support line on 1300 186 688 to be referred to a financial planner for specialist advice. Alternatively, call My Care Path on 1300 755 702 to learn more about the aged care options that could best suit you.

Disclaimer: The information on this site is general in nature and does not constitute legal or financial advice. Readers should seek their own personal legal and financial advice from a suitably qualified practitioner.

Read more information about super and planning your future in these guides on the Aged Care Guide website:

Investment and wealth creation options

Investing your money is one option to grow your retirement savings but you need to make sure your approach will suit you and your retirement goals.

With hundreds of investment options available, it can be difficult to provide a list of the best options — the most beneficial options will also depend on your personal circumstances, according to MoneySmart. When deciding on investment options, you should consider your income, debts you’ve incurred and any medical costs if they are significant.

You may have specific ideas about where you would like to invest your money, such as shares or property. However, it’s a good idea to engage a financial planner to help you understand the risks involved and meet your financial goals, according to MoneySmart.

Wealth creation, or investing, could help you reach these goals by growing the income you earn while working so you have more than just income savings when you retire. Continuing wealth creation after you retire by staying on top of investment returns can add to the money you have available and stretch it out over more years.

Financial advisors provide options, advice, and investment strategies for individual situations and consider how you might benefit in the short and long term, including retirement planning. They are required to act in your best interest as per the Financial Adviser Standards and Ethics Authority guidelines, so will provide you with the best option, according to the Australian Securities and Investments Commission.

Aged care costs and fees

As you get older and the level of care you need increases, you might be wondering, ‘how much does residential aged care cost?’

The amount you’ll pay for a place in an aged care home depends on a number of things, including the type of accommodation you need or have chosen. Aged care services costs can be broken down into a number of different areas, including fees for your daily care, an accommodation payment, means-tested fees and any additional fees if you want extra services during your stay.

Your aged care fees could be paid with the money you earn from assets and investments or the Age Pension provided by Services Australia. If you are unable to afford nursing home care but need it, the government can provide financial hardship assistance.

Fees for aged care are also calculated based on your financial situation, e.g. income you earn and the assets you own. If you don’t have a lot of funds at your disposal, you may need to specifically look for a government-subsidised nursing home or care which can involve a government subsidy, rather than a private facility. The Department of Health and Aged Care website contains comprehensive information about what subsidies are currently available.

For more information about the costs of private facilities, visit this Aged Care Guide: What are your non-Government funded aged care alternatives?

The costs of some aged care facilities may change after you move into a home so it’s worth understanding what to expect over time and reviewing financials regularly.

Read more information from the Aged Care Guide here:

How much does a nursing home cost?
Daily fees
Means tested fees and charges
Extra services
What basic services does every aged care facility have to provide?

Life in an aged care home

Moving into an aged care home will mean you’ll have access to 24/7 support with access to all the care and services you need in most cases, according to My Aged Care. In aged care homes, staff are generally friendly and outgoing and can be called on if you need assistance.

Daily life in a nursing home may be different from how you lived in your own home, but many residents feel positive about these changes as they often involve more social opportunities and activities. You and your family can also take comfort in the fact that any care needs you have — from medication management to support for dementia — will be looked after every day.

Some of the biggest benefits of aged care over care at home are the peace of mind, security, medical assistance and constant support that a facility can provide to maintain your physical health to the highest standard possible.

However, quality of life in aged care is about more than just physical health, it’s also about mental, social and emotional wellbeing.