Superannuation – for some, the word evokes a roll of the eyes, for others a little twinge of worry or concern and for a small percentage of us, a bit of a smile.
On average, most Australian’s don’t really pay too much attention to their super, and in some regards, it’s easy to understand why that is the case. The money is put in there for you, so you never really see it. It’s managed in a system that’s hard to understand, and if you do finally manage to work it out, the government goes and changes the rules again. Finally, the returns on average don’t ever seem to be that good – so really, why bother?
Because it’s an artificial tax environment the government has set up to allow you to invest for retirement, which allows for certain core abilities that other forms of investment don’t. Some of the advantages of investing with super are:
To summarise, you get to keep more of your money when you save it, you pay less tax on your profits and you can invest it where you would normally invest your money. Also, it’s well protected from nasty surprises.
If it’s that good, why doesn’t everyone love it? Quite simply, super is controlled by the large product providers, and their marketing departments are effectively responsible for what most people learn about how super works. Financial education in Australia is quite poor, so most people learn from magazines, TV, newspapers and advertising. As a result, the messages and ideas that are distributed about superannuation are biased towards those that make money out of it.
Take control of your superannuation and learn what you can do with it. Embrace it’s advantages and take control of your financial future. Speak to a financial planner at Financial Spectrum to see how one can help you achieve retirement freedom.