/Why Superannuation is important?

Why Superannuation is important?

Whether you’re at the very beginning of your career or going to reach your retirement age in a very few years, superannuation Australia is very important for you. With regular and smart superannuation contributions, you would have a significant amount of savings in your hand which helps you make a happy retirement life after work.

Here are some major reasons to tell you why you should consider superannuation Australia as important as anything else.

Retirement could be last for a long time

Your retirement period may be longer or shorter, it depends upon many factors. But, once after getting retired, you will not get a monthly source of income just like working years. Hence, it is very important to have funds to cover your all needs for the rest of the years.

Insufficient age-pension

The Government of Australia offers an Age Pension to the eligible persons, but the amount you get as an age pension will not be good enough to fulfill your financial needs. In such cases, superannuation Australia can be extremely beneficial to supplement your age pension and can be drawn as your monthly income stream.

You can get great tax incentives

Australian Government provides several tax concessions for superannuation contributions for encouraging peoples to invest in superannuation. The percentage of tax consumed for superannuation is very less than the personal marginal tax rate. For an instance, only a 15% tax is taxed for all the superannuation contributions of your employer as well as your superannuation investment earnings which set this as the best investment option to choose for a happy retired life.

Long term- Investment

Superannuation is a long-term investment plan, which helps you to save for your retirement. You can’t access the money invested in superannuation Australia until you retire or you reach your preservation age, to make your long-term savings possible. Also, you are provided with 3 types of insurance that you can withdraw when you get through any kind of health risk. The three types of insurance cover you get in superannuation Australia includes

1.    Life insurance

In any circumstances, if you are diagnosed with terminal illness a sum of insurance proceeds are paid into your super account. This is applicable in case if you die and the amount on your super account will be paid to your beneficiaries.

2.    Total and permanent disability insurance (TPD)

TPD insurance works in a way similar to Life Insurance. Here lump sums of insurance proceeds are paid into your super account if you are diagnosed with TPD.

3.    Income Protection Insurance

Income protection insurance is also called as salary continuance insurance. If you suffer from illness or injury, which puts you away from working for a short period of time you can proceed to cover this insurance. You will tend to get 75% of pre-disability salary as a replacement income which is paid regularly until your recovery period.

And the insurance covers completely depend upon the plan that you are investing on. To avoid any kind of disappointment, make sure to check before choosing your super plan. Check all the benefits of the plan, before you choose one to claim the benefits. To know about the best superannuation Australia for you have a talk with a superannuation advisor. We are a professional superannuation advisor based on Sunshine Coast, Australia. Contact us today for a Free 2 hour financial assessment where you can discuss and get to know more about superannuation.