Superannuation, or ‘Super’, has been a compulsory retirement scheme since 1992 where your employer sets aside money, along with any of your own personal contributions, to fund your lifestyle in retirement.

It also has benefits which you should be educated on to take advantage of. We have listed seven (7) benefits below:

1. You know it will be there
There are two major differences between investing inside or outside the superannuation system. Firstly, if you invest outside the system, such as in a bank account, you can withdraw all or part of it at any time. Superannuation savings, however, can generally not be accessed until you meet your preservation age and/or retire from the work force (the preservation age can range anywhere from 55 to 60 depending on your date of birth). Secondly, see below.

2. It’s tax advantaged
A special concessional rate of tax applies to superannuation funds which, in most cases, is much lower than the marginal tax rate you have to pay on the interest earned from a bank account.

3. Salary Sacrifice
Those who utilise salary sacrifice can reap huge savings because earnings that go towards salary sacrifice are only taxed at a rate of 15%. For someone in a tax bracket of 45%, this represents huge savings.

4. Your employer has to contribute on your behalf
One of the most appealing features of superannuation is employer contributions. In fact, the bulk of your superannuation is probably made up of employer contributions, which means that you’re already in a good position for your retirement.

5. Compounding works to your advantage
Your super is invested over the long term, allowing you to take advantage of compounding, or the ability to reinvest your funds profits (e.g. dividends) over time to generate even greater retirement potential. Time is your greatest friend as an investor, and being able to reinvest a dividend at 3% can make a major difference in your wealth come retirement.

6. There are benefits in getting your life insurance paid through super
You can get the cover you need for you and your family, even if money is tight and it’s easy to manage because premiums are automatically deducted from your super balance.

7. Simple Retirement
When you retire, you can receive a weekly or fortnightly income stream from your Super the same way you get paid your wage from your employer. In some cases, you can ‘top up’ your income using a part-pension through your Super account.


Contact us today to arrange your complimentary appointment with one of our Superannuation Specialists to help you understand and act on the benefits available to you through your Super.