Is super secure?
Superannuation funds are regulated by the Government and adhere to stringent rules to protect your money.
Investments within superannuation are not exempt from market fluctuations. Volatility with an investment can be reduced over time. If you make an investment for a longer period of time, like with superannuation, your risk is significantly reduced.
How is super taxed?
Pre-tax contributions made by you and contributions paid by your employer (up to $50,000 a year) are taxed at 15 per cent.
The earnings on your investments while invested in super are taxed at a maximum rate of 15 per cent, whereas earnings outside of super will probably be taxed at your highest marginal tax rate.
Any benefits paid out of super past the age of 60 are tax free.
Will I need more in retirement if I dont own my home?
Unfortunately renters do not fare as well as home-owners in retirement, especially single renters. Thats because most home-owners will own their homes outright and wont have on-going housing costs.
Our research shows that on average, renters will be 17 per cent worse off than home-owners in retirement.
When can I access my super?
Super is designed to give you a good quality of life when you retire. As your super grows, there will be times when you might want to dip into it to fund some exotic holiday, new car or pay off the mortgage. The likelihood of this happening will be remote. Laws are in place to ensure that you dont dip into your super until after you retire. Generally, you cant access your super until youve retired after age 60. There are a few exceptions but for most of us, super savings are there to fund your retirement.
Further information
If you want to know more about the standard of living superannuation could provide you in retirement and the impact adding different types of contributions, retiring early or not owning your own home could have, check out our report
Superannuation the right balance?
