Why Superannuation?

Published: 6-Apr-2024

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Superannuation is a savings plan for your retirement years and a crucial aspect of financial planning for many individuals.

One significant benefit of superannuation is that it provides a source of income when you are no longer working. This can help maintain your standard of living and cover expenses such as groceries, healthcare and holidays during retirement.

Superannuation also offers significant tax advantages that can boost your retirement savings over time.

• Concessional contributions made to your super fund are taxed at 15% which can be favourable as compared with your personal income tax rate and result in a higher level of after tax savings.
• Funds invested within superannuation have 15% tax applied to earnings which can result in greater after-tax performance than investing in your own name.

It is important to note that you will not have access to funds contributed to super before meeting a condition of release such as reaching age 65 or retirement after age 60.

ATO: What is super?