Superannuation

Superannuation

The Australian Superannuation system has approximately $80 billion dollars invested in it.

We should learn about superannuation because we will be receiving the compulsory level of superannuation of 9% and it is likely to become your single largest asset.

The main advantages of Super Funds:

Tax Concessions

The main disadvantages of Super Funds:

Preservation Rules

Topic 1: Retirement Income

We have to consider the possible sources of retirement income for ourselves:

1. Family

2. Community Support

3. Keep Working

4. Compulsory Superannuation Charge

5. Voluntary Superannuation Contributions

1. Family

If we are lucky enough to gain an inheritance that can become a possible source of income. However, due to the ageing population and rising health care costs this is becoming unlikely and parents are likely to need all their savings for their own retirement income.

In many countries however, it is traditional for parents to be taken care of by their children in older ages.

However, in Australia this is very unlikely due to lower fertility rates of only 1.7