Superannuation and retirement planning

Superannuation is simply a tax structure which is designed to provide benefits to the member upon retirement. This may be in the form of either a lump sum or an income stream or a mixture of both.

The compulsory Superannuation Guarantee Contributions Scheme ensures 9% of base salary of all employees is directed towards Superannuation during their working life. As a form of incentive for individuals to fund their own retirement, the government has initiated several reforms to make Superannuation an attractive form of wealth creation for retirement. Some of these incentives that may be appropriate for your personal circumstances include:

• ◊  Government co-contribution
• ◊  Salary sacrificing
• ◊  Contribution splitting between spouses

The amount of funds you require for retirement will largely be dependant on the lifestyle you expect to live and your anticipated life expectancy. This can and does vary significantly from person to person.