What is Superannuation?
Superannuation, or "Super," is a way to save for your retirement. It acts as a special savings account where both you and your employer can contribute money to ensure you have enough to comfortably live on once you stop working.
Super is a tax effective environment where your money is invested in a range of different assets to help grow your balance further, allowing you to have the best retirement outcome. Once you reach your retirement age, you can begin drawing on these funds.
In Australia, employers must pay 11.5% of your salary into your super account. This is called the Super Guarantee, and this percentage is expected to increase to 12% by the 2026 financial year.
Why is Superannuation Important?
Retirement can last a long time—many people live into their 80s and 90s. With life expectancy rising, you might need more money than you expect.
Relying solely on the Age Pension may not provide enough for a comfortable lifestyle, and Super helps you maintain a good standard of living during your retirement, ensuring financial security.
What Your Super Fund does
Once your Superannuation fund receives your contributions, it invests your money into a strategy either chosen by you or a default one. Super funds charge fees, including administration, investment, and optional extras like insurance.
Your Role
It is good practice to regularly monitor your super balance and contributions to ensure your money is growing effectively. If you’re self-employed, you’re responsible for contributing to your own super.
How can we help?
Here at Radiance Wealth, we can assist you in managing your super with services such as:
- Consolidating multiple super accounts into one to save on fees.
- Tailoring investment options to suit your goals and risk profile.
- Boosting your Super by reviewing the types of contributions available to you, or through strategies such as Salary Sacrifice.
- Reviewing insurance options within Super.
- Helping with beneficiary nominations.
- Assessing if a self-managed super fund (SMSF) is right for you.