Superannuation - one of your best assets!
Superannuation is money that will let you enjoy the time of your life when the time comes to retire, so take control of your super today! There's a lot to love about super – it's your nest egg that is growing for the future. Best of all, it's your money and you have control over how it is invested at every stage.
What’s so special about super?
Everything! During our working life, your employer makes contributions to your super fund. How easy is that? This money is invested in the way that you choose, giving your super savings the benefit of compounding investment returns – which means you can generate returns over time on your reinvested earnings.
Money for a rewarding retirement
When you retire, your super offers a source of cash to fund the lifestyle you want to lead in your retirement years, whether that be taking a world trip, renovating your home, exploring new hobbies or simply enjoying a relaxing lifestyle.
Super is tax-friendly
Money held in super is lightly taxed. This is a real plus because more of your money goes to work investing for your future. Super can also be a tax effective way to pay your life insurance premiums.
Pick your investment strategy
Just because your super is designed for retirement doesn’t mean you don’t have control over the money today. You can – and should, let your fund know how you’d like your super invested by nominating the investment strategy that suits your goals.
It’s worth choosing the fund that suits you
The vast majority of workers have the freedom to choose their own super fund, and it’s definitely something worth doing. It will help you keep track of your super and let you and your family enjoy the protection of a low cost life insurance strategy that has been tailored to meet your needs.
Consider adding a bit extra
You have the flexibility to add extra contributions to your super, and this is an easy way to grow your nest egg over time. Even small additional contributions can grow to something big by the time you retire.
Self managed super fund
Running your own super fund offers control of how your nest egg is invested. But there are strict rules to follow, and this is an area where good advice is essential. Around 907,000 Australians have their retirement savings invested in a self-managed superannuation fund (SMSF)*. It's an option that works well for many, and if you are comfortable taking responsibility for your nest egg, a SMSF could be the right choice for you.
How do SMSFs work?
In many respects, SMSFs work in much the same way as regular super funds. During your working life you and your employer make contributions to the fund. The money is invested so that over time you build a decent pool of savings for retirement.
Who can start a self-managed fund?
Just about anyone can establish a SMSF though there is a limit of up to four members per fund. There are various costs associated with setting up and running a SMSF so you’ll need sufficient money to make a SMSF worthwhile.
Valuable tax savings
SMSFs benefit from generous tax concessions. Contributions to the fund plus the returns on the fund’s investments are all lightly taxed so more of your money goes to work for your retirement.
A flexible choice of investments
The beauty of a SMSF is that you have complete control over how your retirement savings are invested – within legal guidelines. It’s important to hold a mix of investments, and this can include term deposits, shares, property and other assets. You’ll need a written plan that shows how the fund is investing for the benefit of its members.
A SMSF helps you save for retirement
One of the key rules of SMSFs is that the fund can only be used to invest for retirement – you can’t normally access the money before reaching retirement age.
Strict rules apply
SMSFs must be run within strict guidelines. As each member of a SMSF is also a trustee, you are responsible for meeting those rules, and if you’re considering a SMSF it’s essential to be aware of what’s involved.