What is Super?
by Andrew KapingaSuperannuation is the part of your pay that your employer must legally put away for you. In spite of all this, super is something you have to have and you'll be glad of it when the time comes for access. After all, you can't work all your life and depending on government handouts is not something that everyone wants to do. He puts it into a specially managed fund so that it accrues interest. Then when you retire you can access money to live on. When super is started early and added to by the employee, the amount can creep up to a surprisingly large balance. One of the reasons for this is that the tax on super is a great deal less than what you pay on the rest of your salary. Another is that the Federal Government may add to it.
The downside of super is that you cannot access it until you are 65 years old - unless there are special circumstances. But that time will come and you'll really need it then. And since the growth is mostly dependent on the wisdom of the fund manager, it may not grow as much as you would have liked. You will also have to pay the manager fees to invest the super for you and these fees may be quite high.
In spite of all this, super is something you have to have and you'll be glad of it when the time comes for access. After all, The downside of super is that you cannot access it until you are 65 years old - unless there are special circumstances. But that time will come and you'll really need it then. And since the growth is mostly dependent on the wisdom of the fund manager, it may not grow as much as you would have liked. You will also have to pay the manager fees to invest the super for you and these fees may be quite high. You can't work all your life and depending on government handouts is not something that everyone wants to do.