What is super and why you should care
Whether you have just got your first job, looking to sort out your finances prior to Hajj, or are getting close to retiring, superannuation is very important to your long-term wealth creation.
Superannuation is paid from your earnings, it’s your money, and is invested into your nominated superannuation fund, by your employer, on a regular basis, for your future.
For most Australians, superannuation will be the second largest asset owned at retirement after the family home.
Thanks to the superannuation guarantee, and contributions made by your employer over your working life, you are more likely to eventually have significant savings that can help pay for your life after work.
Super is a long-term investment
Superannuation, by definition, means a regular payment made into a fund towards a future pension. This means that you typically can’t access your money until you retire.
However, even if retirement is a long-way off, it’s important to engage with you super once you enter the workforce in order to maximise its potential and realise its future benefits.
Equally important is reviewing your super regularly in order to meet your changing life experiences and conditions, along with your long-term goals.
Super tax incentives
There are several ways to lower the income tax you pay. Options will be based on your unique situation and circumstances. These include:
Protect you & loved ones
Insurance cover through your superannuation fund can help provide financial security to you and your family in the event of disability or death.
There are three types of insurance available through Crescent Wealth super funds:
Paid as a lump sum into your super account if you are diagnosed with a terminal illness, or when you die. The balance of your super account is then payable to your beneficiaries
Total & permanent disablement
Paid as a lump sum into your super account if you can no longer work due to a total and permanent disability and you are unlikely to engage in gainful employment for which you are reasonably qualified. If the trustee is satisfied you are permanently incapacitated, the balance of your super account can be accessed.
Paid as a regular payment, this is replacement income paid to you if you suffer an illness or injury which temporarily prevents you from working.