Superannuation

Superannuation, or ‘super’, is a way to save money for your future. It is important to understand how much super you’ll need and how to best manage the money for your retirement.

Through super you can hold a wide range of investments such as shares, property and cash.

Super is attractive because it receives favourable tax treatment, both when you are working and once you have retired. The government offers these tax savings to encourage you to build your super assets. Employers must pay super contributions on behalf of their employees. You can also choose to add money into super out of your own pocket. If you are self-employed, you can choose whether to contribute to super.

The tax benefits of super include:

• Contributions made to super may attract a tax deduction, Government co-contribution, or tax offset.

How much super will you need?

The amount of money you will need in retirement varies from person to person, and depends on:

• The kind of lifestyle you want
• Other income options in retirement (such as part-time work or payments from other investments) that will supplement your super, and the age at which you would like to retire.