Superannuation savings is intended to provide assistance for employees to build savings for their retirement and reduce the burden on government age pension.
Australian Superannuation guarantee rate is set a 9.5% of wages. This rate is set for the 2014 and 2015 and will not increase until 2021. Based on this superannuation rate, the calculator below highlight how much you would receive on an annual or monthly basis.
Contribution are made by your employer on your behalf to your nominated superannuation account. By law, Australian employer must give employees a choice in which super fund the superannuation payment is made.
If employees do not have an existing account, the employer will have an default option.
Superannuation Contribution Threshold
The Australian Tax Office has set threshold that caps total concessional contributions for superannuation contribution.
For those that are under 30, the cap is set at $30,000 per annum. Individual caps above 30 years old are as set below.
|Income year||Individuals 59 years or over on 30 June 2013||Individuals 49 years or over on 30 June 2014|
Funds in the superannuation account can be invested across the full spectrum of asset classes from Shares, Bonds to Property. The funds in the super account can be converted to a pension once you reach retirement age.
For the risk averse, annuities can be purchased. Annuities are a form of insurance where the purchaser pays a premium and receive an guarantee stream of income.
Did you know it is more tax effective by purchasing income protection insurance in your superannuation fund?