Superannuation: Great Investment for Post Retirement Stage
‘Make hay while the sun shines’- goes the old adage. The saying makes more sense as more employees are careful about the decision they make. Saving up for the retirement days becomes all the more important for the salaried class and superannuation is the ideal choice. The superannuation program is particularly popular in Australia.
The Australian superannuation has incrementally increased over the years. Since July 2002, the contribution has been increased to 9% by the Australian government. The 9% is based on the employee’s ordinary time salary and earnings. Ever since the superannuation came into force in Australia, employers have been instructed to make compulsory contributions to the superannuation fund. The Australian superannuation reiterates the need for employers to pay on behalf of their employees. The rules also state that the 9% amount is not payable on overtime rates but on remuneration of bonuses and shift loading along with casual loadings. But many investors are confused about investing. Hence superannuation is looked at with a lot of fear and is often considered to be risky. A better understanding of the Australian superannuation program makes it a great option for investors.
Superannuation brings with it hundreds of managed funds with varied investment strategies. Interestingly there are mirror images of these managed funds outside superannuation. The major difference is the tax treatment and the redemption rules involved in superannuation. Besides, it is important to understand that Australian superannuation is an investment just like any other. The tax treatment however becomes different. The tax treatment in superannuation is employed as an incentive to save for retirement and is considered to be a very good alternative. The superannuation offers varied choices as it is not a case of one investment or the other, as the investor has a choice.
The Australian superannuation offers its citizens a secure deposit scheme for retirement days. The flexibility offered and the various schemes that users can avail are the major highlights of the superannuation scheme. Retirements days require extra care and financial resources. As old age catches up relying on smart savings becomes a requisite for the salaried class. Australian superannuation makes it easier to save up for post retirement days.
About author
Harrison Paspalis is an experienced financial advisor who is writing article on superannuation fund and other financial matters. According to him, australian superannuation is a plan and program which should be worth noticing.
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