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 part of your income, it’s your money that is invested into your nominated superannuation fund, by your employer, on a regular basis. For most Australians superannuation will be the second largest asset you own at retirement, after your family home.
Thanks to superannuation guarantee contributions that are made by your employer over the course of 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 after 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 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 a number of different ways you could potentially lower the income tax you pay. Options will be based on your unique situation and circumstances. These include:
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:
1. Life insurance – this is 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
2. Total and permanent disablement (TPD) – this is 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.
3. Income protection – this is paid as a regular payment, and is replacement income paid to you if you suffer an illness or injury which temporarily prevents you from working.
The benefit of insurance cover through a Crescent Wealth superannuation fund is it is arranged under a group insurance policy which is less expensive than insurance cover offered directly to you outside of your super.