Not only are we an ageing population, we're also living longer. Life expectancies for both men and women have increased, and this means that we now need to plan for at least 20 years in retirement. The problem is there's a significant difference between what we expect from our retirement and what most of us will actually be able to afford.

Superannuation, sometimes referred to as ‘super’, is a long-term saving plan designed to help you save for retirement. It enables you to have significant savings to draw upon and helps ensure you will have enough money to live comfortably in retirement.

Superannuation is the most tax-effective way of accumulating your wealth for retirement.

For most people the Superannuation Guarantee (9% of your salary) will probably not be enough to support you comfortably in your retirement. If this sounds like you, it's not too late to start planning for a secure financial future.

Some of the advantages of using a superannuation investment are:

• You receive significant tax concessions on your earnings; the maximum rate of tax you’ll pay on your earnings in your super fund is 15%.
• You can contribute to your superannuation on a regular basis
• You can shift your super between super funds and it can be taken with you if you change jobs
• You may be eligible to receive a tax deduction for your superannuation contributions

Some considerations which also need to be made are:

• Generally, superannuation is preserved until you retire, meaning that you typically can't access it until that time. It is important to consider the implications of having restricted access to your money.
• Investment returns on your investments within superannuation are typically influenced by economic and market conditions and your investment may increase or decrease in value;
• You should consider receiving financial planning advice to determine an investment strategy that would enable you to meet your financial requirements in retirement

Did you know?

Many Australians are letting their retirement nest eggs dwindle because they are paying unnecessary fees on billions of dollars of `lost' superannuation accounts.

SuperSeeker  is an online search tool that will help you look for any lost or unclaimed super you may have.

Eastwoods Wealth Management can help you achieve your financial goals sooner.

Contact us for more information.