Superannuation is a valuable and tax-effective system used to accumulate savings over the long term for your retirement. Whilst there have been numerous changes to super over recent years, it is still remains one of the most tax effective means of accumulating wealth and providing income in retirement.Some of the benefits of superannuation include:
Both types of contributions have their own advantages and disadvantages and their application can form the basis of a financial strategy. Because super is designed for retirement there are restrictions on contributions to and withdrawals from super. You can only access your super upon meeting a specific condition of release. Generally this means retirement from the workforce once reaching the preservation age (ranges between 55 60 years depending on your dateof birth), reaching age 65 or through a Transition to Retirement (TTR) strategy. Further information regarding the preservation age as well as other conditions of release is available at www.ato.gov.au/super.
Retirement Income Streams
Once you are nearing or have retired, numerous income stream options are available for you to purchase with your super. Some include:
Each income stream has its own features and advantages and you may use a combination of options to meet your income needs in retirement.
How to get the most from your Super