Come retirement, it’s highly unlikely the Age Pension is going to cut it. You certainly won’t be able to do much without funding retirement yourself.
What is superannuation? How does it work? Why should you care?
– Superannuation is taxed at a maximum of 15%. The tax rate for the average Australian is 32.5%… More than double!
– It’s a forced savings plan for later in life to help ensure you can have a more comfortable retirement
– When you retire, the income you draw out of your superannuation is generally tax-free, whereas investments in your personal name are taxable
– If you’re an employee, your employer is generally required by law to pay at least an extra 9.5% of your ordinary earnings into your superannuation
– Some of your personal insurances can be paid for through your superannuation fund
– Not all superannuation funds are the same, so it’s a good idea to get financial advice to determine which super fund is right, and how it should be invested
If you’re a First Home Buyer, you may also be able to use the First Home Super Saver Scheme to save tax, boost your deposit, and buy sooner. The benefits from the scheme can be used in addition to any First Home Owner’s grants available in your state or territory.
Grant Millar and G&A Family Investments Pty Ltd t/as Inspired Financial Planners are Authorised Representatives of Synchron, AFS Licence No. 243313
The information contained on this website is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser..