Super is your savings for retirement. How you spend your quality time in retirement may be directly related to how much money you have to do the things you love.
Whether it's planning a holiday, refurbishing your home or simply spending more time with family, your super could end up being one of your most valuable assets and an important source of income after you stop working.
While you're still working, it's compulsory for your employer to contribute 10.50 per cent of your salary to your super fund. This amount is set to rise to 12 per cent by 2025/26 – a great Government initiative to help Australians save for their retirement.
Tax benefits and contributing more to super
There are a number of tax benefits associated with contributing more to super, so there's limits to the amount you can contribute each year. These limits or 'contributions caps' change from time-to-time so it's important to be aware of these limits if you chose to contribute more to super.
Accessing your super
Super savings are specifically for your retirement so there are restrictions on when you can access your money. In most circumstances, you can access your super money when you reach your 'preservation age'. Refer to the preservation age table below.
What's your preservation age?
Your preservation age depends on the year you were born as you can see from the table below.
|Date of birth
|Before 30 June 1963
|Already reached preservation age
|1 July 1963 – 30 June 1964
|After 30 June 1964
When you retire, after you reach your preservation age, you can choose to take your money in the form of a pension payment or a lump sum payment. Under the current laws, when you retire and after you turn 60, the benefits you receive from a taxed super fund are tax-free.
For a deeper understanding of super check out our video Getting to know your super.
There are many strategies that you can use to boost your super and make the most of the tax benefits.