us instantly switch off as soon as Super is mentioned. In fact, you
are doing pretty well by clicking onto this page.
sentiment we come across is that "I will worry about Super
later on. I'm not retiring for at least another 20 years." Sound
believe that it's more exciting to think of Superannuation
NOW and think of it as your account for building long term
should focus on the one simple fact that Superannuation is
a tax-sheltered vehicle for retirement. That is, it helps
you make money.
generally, superannuation earnings are taxed at 15% and non-super
earnings are taxed at your marginal rate. Presuming
the highest marginal rate of 46.5%, look at this
simple example which shows what the different tax rates can
mean over the long term:
- Investment: $100,000
Term: 20 years
sum if held outside of Super: $231,217
sum if held within Super: $372,756
$141,541 means you are 61.2% better off in Super.*
part of Investing for Wealthis
making the most of Super by putting whatever you can into that
"environment". If you can afford to do without some of your
funds until retirement, Super is invariably the best place to
recent changes enacted by the Government have opened up a raft of
new potential strategies for people of all ages to use Super for
knows? Talking to us about Super might be interesting.
that this example is merely a general illustration of the long term
effects of varying tax rates on notional investment returns. It is
not to be taken as financial advice as we have not taken your
individual situation into account.