Well that got your attention! What are we talking about? We definitely don’t have spare cash to throw out to you all but the Government might. I know this sounds very fishy – especially when I say that the Government wants to give you money but it is true for some of us.

How long have you been working? 5 years? 10 years? 30 years? And how many superannuation funds have you had along the way? What about that job years ago that you had for 6 months? Working at McDonalds didn’t agree with you but they may have paid you superannuation and where is it now? Superannuation legislation for employers to make compulsory superannuation contributions came in in 1992 and since then, people have had fund after fund and are losing funds at a staggering rate.

In 2011 a Westpac survey found that there was a massive $19 billion in unclaimed superannuation in Australia, with $4.7 billion here in Victoria alone. The report also showed that the areas with the largest amount of lost super included Brandon Park, Glen Waverley and Wheelers Hill with a total of around $57 million from these suburbs alone. Workers and retirees in the western suburbs of Werribee and Point Cook have about $53 million waiting to be claimed, while Fountain Gate and Narre Warren residents are missing just over $50 million.

These staggering figures show the need to keep track of your funds. So if you’re thinking that you could have some lost super from the days as the mail clerk or even before you left work to have your kids, then you need to click onto the ATO’s SuperSeeker website. It is a secure, convenient service designed to track and find your super accounts.

So that’s one way to get free money from the Government and I hear you asking what’s the other? The answer: by checking for lost cash, insurance policies with balances and shares. The ATO have records of more than $670 million in lost funds (outside of superannuation listed above). So if you’ve moved house and you think you once held some shares in Billabong that your grandmother gave you, you might be lucky enough to find them again (OK, so if you had Billabong shares, they’re probably better lost – but if you had Commonwealth Bank shares, now that’s one that you’d hope to find).

All you have to do for this one is log on to the moneysmart.gov.au website and type in your name. Within seconds you could be $10 or $1,000 richer, or no richer but feel comfortable knowing that you’ve not lost any of your hard earned cash.

And that’s the other way to get free money from the Government. Well, technically it’s your money anyway, you might have just lost track of it. In any case, it takes a couple of minutes to check and you might find some money you didn’t realise you had.

For some, knowing that one day we get to retire and never work again keeps us going. Knowing that we’ll one day have all the time in the world to do what we want, when we want. But what will actually happen to our money in retirement? How does it all work?

What happens to your super when you retire?
A vital element of retirement involves choosing how to use your super savings. To set yourself up for retirement and providing your future income, you will need to make decisions regarding how you are going to invest your funds, when it will begin, how much you wish to receive and how often you will need to receive payments.

When can you access your super?
While Preservation rules may allow you to access a portion of funds early, to access your superannuation benefits for retirement you need to meet a condition of release which includes:

• Reach Preservation Age which is anywhere from 55 to 60 depending on your date of birth.
• If aged 60 to 65, you must have ceased employment and if you are under age 60 there is a further requirement that you never intend to be gainfully employed for 10 or more hours a week.
• If you hit age 65, there are no restriction and you have full access to your funds.

What retirement options are available to you?
Retirement shouldn’t mean – Now I can access my funds so give me my lump sum. There are many options available that need consideration to ensure that your entire retirement life is taken care of.

• An Account–based pension (previously known as an Allocated Pension) allows you to invest your funds the same as you would under a super plan, however pays a regular pension payment from your balance. Any funds remaining after your passing forms part of your estate.
• An Annuity is an investment that is commenced with a lump sum and provides the investor with a guaranteed income for specific term but you have no say in the investment of funds and you may forfeit any balance upon your death after a qualifying period.
• Lump Sum Withdrawal to live off the balance of funds.
• Leave it in Super. You can now leave your benefits in superannuation (accumulation phase) indefinitely and there is no requirement for withdrawals to be made.

What about tax?
Tax should be a big consideration in retirement. It seems to be a common belief that once you retire, you don’t pay tax but that’s not necessarily the truth.

Tax laws still apply to everyone regardless of your age. If your 100 and have taxable income, then you should be lodging a tax return. But the way you structure your funds in retirement could dramatically reduce your tax bill.

For each of your retirement options there are tax consequences which are explained in further detail in the full article.

So with all these options and considerations, what should you do with your super at retirement? You should seek the advice of a good financial planner as you could be considerably worse off by not knowing what you can do and what it will mean for you and the future generation. Retirement should be about enjoyment and family not worry about whether your funds will last and pension payments.

Let JBS do the worrying for you.
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