Why is superannuation important?
“Many of us will spend more than a quarter of our life retired, as people are now living until an average age of 86 years (if you’re male) and 89 years (if you’re female). Life expectancy is expected to rise to 91 for males and 93 for females by 2050.”
-Association of Superannuation Funds Australia (ASFA)
Superannuation, is a way to save for your retirement. You build up super while you are working to make sure you can have a comfortable retirement.
Super is a tax effective environment for your money; the account is held in your name, and both you and your employer can deposit money into your account. Your money will attract investment earnings, and when you reach your ‘preservation age’, you are able to start drawing on these funds.
How does superannuation work?
Superannuation is treated differently to most other savings. For most people, super will be taxed at a lower rate than a similar investment outside super. You may also be able to claim a tax deduction for personal contributions you make to super.
What your employer does
If you’re entitled to receive super, by law, your employer must pay your superannuation contributions into your a super fund at least every 3 months.
What your super fund does
Once your superannuation fund receives your contributions it invests this money either in a default strategy or one you have chosen yourself. Fees charged by the super funds may include general fees such as administration, member and investment, as well as optional extras including adviser fees and insurance premiums.
It is important you keep an eye on your superannuation payments and balance to ensure your money is working as hard as it can for your retirement.
If you are self-employed, you are responsible for making your own superannuation contributions.
How we can help?
The team at Varria can help you understand, grow and manage your superannuation.
We can help you:
- Consolidate your super funds and help you save on fees
- Identify investment options tailored to your goals and risk profile
- Review your concessional and non-concessional contributions to super
- Identify strategies to help boost your superannuation
- Enjoy the benefits of salary sacrifice
- Understand your insurance options within superannuation
- Determine if you have the correct beneficiary nominations in place
- Determine whether a self-managed super fund (SMSF) is right for you.
To discuss your superannuation needs please contact one of our qualified Financial Advisers at Varria or phone on 07 3029 5400.