Super at a Glance
Super is not an investment as such, rather it is an "investment vehicle" which allows you to hold investments including shares, property, cash, bonds and international investments. The Federal Government has made super very attractive to use by providing a number of unique tax advantages including:
- Some types of contributions are tax deductible for the person or company making the contribution
- While your money is invested using a super fund, investment income and capital gains inside the fund are taxed at a maximum rate of 15%
- If you are receiving an income stream from a super fund, investment income and capital gains inside the fund are tax exempt
- When you receive a payment as a lump sum or an income stream, these payments are concessionally taxed and in some cases are tax free
Set yourself up for a comfortable retirement
Superannuation is a favoured method of generating a lump sum for retirement and then using that lump sum to generate an income stream after retiring.
Even though super may seem complex, the concept behind it is very simple - it provides a way to save now so that you can enjoy a comfortable lifestyle when you retire. Everyone wants to be comfortable in retirement. And the more money you have, the more comfortable you'll be. That's why you should consider reviewing your retirement plans now.
