Superannuation - Make a Big Difference to Your Retirement Lifestyle

From public pensions to employer pension funds, there are different schemes that give people an income after they have stopped working. In Australia, retirement income is funded through a mix of personal savings, a government pension and superannuation. A superannuation fund is made up of employer contributions, your own personal contributions and sometimes additional Government contributions. In this article, our tax lawyer in Perth explains you in detail how a superannuation fund works for you.

Superannuation for a Happy Retirement

Did you know with total assets of $2.7 trillion, the superannuation industry is set for a major growth to reach around $10 trillion by 2040? According to the tax lawyer in Perth, superannuation is a great tool to save for retirement as it allows Australians to save for their retirement by investing a part of their earnings in various investment types.

• Employer Contribution: Also known as Super Guarantee Contribution, your employer is entitled to pay 9.5% of your regular wage or salary, as a minimum, into your super fund. It’s an additional payment on top of your wages or salary.
• Your Contribution: An individual can top up their super fund by making personal contributions. If you are running on a low income, you are eligible for government contributions.

The monthly deductions towards superannuation fund also allow you to avail tax deductions.

Types of Superannuation Funds

Accumulation Funds: In this type, your contribution to your fund accumulates over time with the total money.

Defined Benefit Funds: It is determined by calculating super contributions by you and the organisation you work for. It takes into account the average wage across the past few years prior to one retires, and the number of years you worked for the organisation.

According to the Association of Superannuation Funds of Australia Limited (ASFA), projected superannuation assets are expected to be around $9.0 - $10.5 trillion in 2040, representing 185% of Australia’s GDP.

Benefits of Superannuation

• Unlike other investment options, superannuation savings cannot be accessed until you retire or you reach your retirement age.
• It receives a special concessional rate of tax which is much lower than the marginal tax rate you have to pay on the interest earned from a bank account.
• You can set up a regular savings program and make lump-sum payments.

How Can You Apply for a Superannuation Fund?

You can apply for a superannuation fund by filling out a standard choice form. It requires your personal details and information about your preferred super fund. You can also talk to your superannuation lawyer in Perth to know more details about superannuation plans.

If you are a foreign resident wondering about the superannuation plans available for you, visit https://www.munrodoig.com.au to talk to your superannuation or migration lawyer in Perth.

The author of this article is a leading superannuation lawyer in Perth with a great knowledge on superannuation plans and how they work. In this article, he writes about the importance of superannuation for your retirement life. Visit https://www.munrodoig.com.au for more information.

Founded in 2002, by its directors Colin Munro and Ron Doig, Munro Doig Lawyers is a leading law firm based in Perth, Western Australia.