Raiz Super passes $100m threshold for funds under management
As at the end of May 2021, Raiz Invest passed the $100 million threshold for Funds Under Management (FUM) in Raiz Super, at $102.1 million, an important milestone for the mobile-first investing platform. That is growth of 49.7 per cent in superannuation FUM over the past year, and a 4.7 per cent increase on April.
“Raiz customers are taking more control of their superannuation and recognising at a much younger age the importance of investing more frequently into their retirement savings,” said Brendan Malone, CEO, Raiz Invest Australia.
With the end of financial year fast approaching, Raiz Invest is encouraging customers to get on the front foot before 30 June and take advantage of the superannuation concessional contributions cap of $25,000 through voluntary payments, which benefit from the lower tax rate of 15 per cent paid on the contribution.
Many users of Raiz Invest Super are well on their way to maximising the benefits offered by the $25,000 contribution cap according to Malone.
“Raiz Super customers are using automated features that contribute to super during the year.
“Some have set up a recurring contribution into Raiz Invest Super, which happens weekly or monthly. Others are directing their Raiz Rewards into Raiz Invest Super, so when they shop online through Raiz Reward partners the cash back investment is made into their superannuation account.”
With interest rates still very low, Malone says now is a good time for Aussies to take advantage of the concessional contribution cap in super through voluntary contributions.
“Depending on our customers tax situation a contribution towards the cap may only experience a 15 per cent tax rate, which may be a good amount of dollars saved compared to a person’s marginal tax rate – but you should always check with your tax advisor,” adds Malone.
“It is important to take full advantage of the contribution cap before 30 June and notify the fund of your intent to claim a tax deduction, if it is suitable for you.”
Raiz Invest, which is focused on improving financial literacy amongst all Australians, believes more education is required to get people thinking about superannuation strategies that can build wealth, while effectively understanding the Australian tax system at the same time.
“Raiz has introduced automated features to take advantage of the benefits of voluntary contributions throughout the year, with no need to rush as financial year end approaches,” Malone continues.
“The government allows many Aussies to contribute up to $25,000 each year to their super funds and claim a tax deduction outside superannuation, which will increase to $27,000 in the new tax year starting 1 July.”
As of 31 May, Raiz Invest passed the $750 million mark of FUM in Australia, including superannuation contributions, and remains ahead of budget to reach the $1 billion milestone in calendar 2021. Customer sign ups also grew by 1.6 per cent in the month to 1,078,395, and investment accounts grew by 1.8 per cent to 511,969.
