Superannuation, often called super, is a way to save for your retirement. You build up super while you are working to make sure you can have a comfortable retirement.
Super is a tax effective environment for your money. Both you and your employer can deposit money into your account. Your money will attract investment earnings, and when you reach your ‘preservation age’, you are able to start drawing on these funds.
Your employer must pay a proportion of your salary into a super fund. This is called the Superannuation Guarantee and has been increased to 10.5% per annum since July 1st 2022. It will increase by 0.5% each year until it reaches 12% in 2025.
There are a range of strategies to assist in growing your superannuation and there are lots of different super funds out there, and different types of accounts. The experts at Primestone Wealth can assist to demystify superannuation strategies and accounts for you.
Self Managed Superannuation Fund (SMSF)
A self-managed super fund (SMSF) is a private super fund you manage yourself. SMSFs are different to industry and retail super funds as you choose the investments and the insurance and are the trustee of the fund.
Your SMSF can have no more than six members. Most SMSFs have two or more. As a member, you are a trustee of the fund — or you can get a corporate trustee. In either case, you are responsible for the fund.
Whilst having control over your own super can be appealing, it comes with risk and responsibilities, speak to one of our Financial Advisors now to see if an SMSF is right for you.