We take superannuation for granted in Australia but what do we really know about your superannuation and your current balance?
The advantages of superannuation include the following -
- We as Australian's are forced into the system of saving for retirement. We are currently paying 9.5% on super guarantee and 17% if we are in the public sector.
- We are concessionally taxed within Super. We pay a marginal rate of tax outside of a superannuation fund starting at 19% above the tax free threshold and pay a fixed rate of 15% inside superannuation.
- We have Insurances within superannuation, but can be a hazard if we have nil dependents and move jobs regularly.
- Super can be seen as offering asset protection. What do we think of our current superannuation balance? Does it suit our purposes? Is the investment strategy based on 95% growth assets and do we want that?
We should ask ourselves more often how are we planning for retirement, are we retirement ready? Do we know the age we can access our superannuation and how much do we need pre and post retirement, does our budget allow for retirement and can we afford it?