Superannuation or ‘super’ is money saved for your retirement.
By law, if you work for someone, they must contribute a minimum of 9.25% of your salary into your super each year. If you work for yourself, then it’s up to you to put money aside. Apart from situations where you experience severe hardship, you can only access these funds once you have reached retirement age. This makes sure your funds are locked away for just one thing – your retirement.
Many people also choose to make extra contributions to their super – either as direct payments or through salary sacrificing. Doing this can reduce your tax – savings in your super are taxed at a lower rate than savings you have outside of super.
For example, while your marginal tax rate can be as high as 46.5% (depending on your salary) your super is only taxed at a maximum of 15%. Super funds also enjoy the benefits of compound interest.
If you’d like to find out how you can boost your super and save on tax, contact Stonegate and one of our experienced consultants will make a time to see you to discuss your particular needs.
