Superannuation for Expats
Superannuation can be a highly tax-efficient and effective vehicle to save and invest towards your retirement, however as a non-resident (expat) there are some additional, and equally important considerations to take note of. Having left Australia is no reason to forget about your superannuation. It’s important that you get the right advice to ensure that these funds continue to work for you.
By putting in place an appropriate superannuation strategy, you can ensure that you and your family are provided for in your ‘golden years’.
Contributing to Superannuation as a Non-Resident
Superannuation contributions are open to anybody with an Australian tax file number, whether they be an Australian resident or non-resident. The eligibility rules for contributions apply equally to both groups, which is contrary to popular belief that expats can not make superannuation contributions.
Generally speaking, contributing to your superannuation is a worthwhile strategy if you plan to return and retire in Australia and/or if the tax advantages of superannuation are more attractive than your country of residence. It is important that you speak with a qualified adviser to discuss the most appropriate strategy based on your own circumstances.
Top Superannuation Considerations for Expats
As a non-resident, there are a number of important considerations that you should be aware of, which I have outlined below:
Consolidate Your Super: Many expats have a number of superannuation funds from various jobs they’ve held. For many, who simply ignore these funds, their superannuation balances will be consumed by fees. By consolidating your super, you can ensure that fees are minimised and that the portfolio is aligned to your overall investment strategy.
Eliminate Duplicate Insurances: It is common for expats to be paying for insurance within super that; a) they do not need and b) they are not even aware of. By eliminating these duplicate insurance policies you can reduce your fees and ensure your super balance isn’t chewed up by unnecessary insurance premiums.
Contribution Strategy: Contributing to super while you are living and working offshore can be an excellent strategy depending on your own personal financial circumstances. It is important that you seek advice from a qualified, fee-based financial adviser on this.
Align Your Investment Strategy: When reviewing your overall asset allocation and investment strategy, it is important that your super is not simply ignored. Your super may play a small or large role in providing for your retirement income and under either circumstance, should be carefully considered.
Take Advantage of the Superannuation Benefits
Ensure that your superannuation is working for you while you’re living abroad and that you’re taking advantage of the benefits available. Schedule your no-obligation consultation with me to identify the right strategy for you.