Too Young To Think About Super?

December 11, 2013

Why Superannuation isn’t just for older Australians


For older Australians nearing retirement age, superannuation is a great way for them to prepare for their retirement. It provides generous tax concessions and in many cases they can access their super already. But should younger people be thinking more about superannuation as they may not be able to access this money for many years.

Super for young people


Most Young Australians  look forward to being able to access their superannuation in retirement tax free. While tax concessions are a great incentive, you should consider contributing extra money into your super for your future retirement.


Other superannuation benefits that younger people should consider include:


·  Co-contributions: The Superannuation co-contribution is an initiative of the Australian Government to help individuals to boost their retirement savings. Eligible persons include low or middle income earners who make personal super contributions to their super funds.


· Contributions Splitting: This allows a couple to share the contributions made by one partner. This can be beneficial where one partner has a much higher superannuation balance than the other.


· Transition to retirement: This Government initiative allows people to access their superannuation early, even if they continue to work.


· Concessional contributions cap: For the 2013-14, the general CC cap for those 59 years and under is $25,000. For those 60 years and over, it is $35,000. From 1 July 2014, the higher cap will be extended to apply to individuals 49 years of age or over.


Alternative Investments



While these rules make superannuation much more attractive to younger people, It is still important to consider alternative investments. Large expenses such as mortgages or the expenses associated with raising children will impact greatly on your finances. Superannuation, whilst a solid investment for the future, can not provide assistance in affording other large expenses across the life cycle. With this in mind, younger people should consider investing in alternative investments at the same time  as harnessing the investment potential of their superannuation for the future.

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