What is superannuation?
Superannuation (or Super) is a fund designed to help you save and invest for your retirement, it receives special tax treatment and when it comes to investing over the long term, there aren’t many better tax-effective ways to save for your retirement.
Super opens your money to the world of investment markets and you can choose how it is invested – offers your super more potential to grow. Super also offers competitive insurance. Did you know that you can pay for your insurance premiums from Super?
Why do I need super?
- Our population is ageing rapidly and Centrelink will not be enough to support your ideal retirement lifestyle
- Super is compulsory for employees and Super Guarantee (SG) Contributions from your employer are also compulsory, so why not make the most of this money and invest it
- Super Guarantee (SG) Contributions over 40 years will only provide you with just over half of your pre-retirement income, this may not be enough for your lifestyle in retirement. So ask yourself, ‘how much do I need?’
More flexibility for your goals
Super is becoming more flexible with more strategies and ways to reach your retirement goals. The government’s co-contribution scheme is designed to help you get more into your super. Other forms of contributions can be used to reduce your tax.
Another option to facilitate the lifestyle you desire would be a transition to retirement strategy. This means you can still work full time or part time after a certain age and still contribute to your super boosting it for retirement by taking advantage of the different tax rates.