Splitting super

Hi,

I am 31 and my wife is 9 years older. I am investigating the option of splitting some of my super into her super as she'll be allowed to access it earlier.

My wife's super money is mainly in a defined benefit plan (pss) + some money from a previous employer in an accumulation plan.

I would love to get some opinions on the following:

1) Does it make sense to start splitting now or is it too early?

2) If I decide to split, should I consistently move the maximum amount (85% of what I receive from my employer in a year). Maybe more if I salary sacrifice.

3) Is the benefit received from my wife in her defined benefit scheme in any way influenced by any other accumulation super accounts she would have? (I don't think so).

4) Is there anything else I should be aware of?


Thank you.

 

Hi Chif,

My mate Liam Shorte the SMSF Coach recently wrote a detailed article about all the benefits of splitting which may answer your questions - even if you are not n a SMSF - same things apply.

http://thesmsfcoach.com.au/2013/04/12/using-superannuation-contribution-splitting-in-a-smsf-self-managed-superannuation-fund

Hope this helps.

SM