It’s easy and popular to disparage superannuation - its complexity, constant changes and recent negative returns - but let’s not totally forget some of the great gifts it brings:
- It’s a tax deductible saving! That’s a concept difficult to beat from the start. Banking your savings before you pay income tax on it is a sweet deal.
- It becomes a tax free asset, just as family homes are. After you turn 60, the taxes start disappearing so if your $500k super balance gets an annual return of 8%, you’ve just made $40k, which you can access and that doesn’t go into your tax return as income.
The above article is from a financial planner that I work with. Please give me a call on 0404 494 999 if you wish to know more and I can put you in contact