What is Superannuation?
Superannuation is basically a pension program that is adopted by organizations as a way of benefitting and rewarding their employees. It is also referred to as a company pension plan which is beneficial to existing customers and not only to those who have retired or aren’t able to work anymore. When one delves further into the process of superannuation, you will find that it is an account where you deposit money and the money grows every annum until the day you will decide to withdraw the funds or when you have reached the retirement age. Superannuationis the act of funding this account and maintaining and managing it using online tools.
Is Superannuation Only for Retirees?
No. The main purpose of superannuation is to grow the savings of an employee as he or she provides services for the company at hand. For example, if you have worked for a certain company for 15 years and started saving during your first year of tenure, you will have a substantial amount of savings at the end of the fifteen years. This is because of the interest gained by your savings compounded on the total time which your savings have been in the “super” account. Of course you can withdraw this money at any time although most people save it for retirement. There is a lot of information about superannuationabout these super accounts, how to save and when to withdraw.
Is there a Minimum Amount to Pay?
There is a specific threshold set by the government of which the employee should not pay a dime under. This is called the superannuation rate. When you search for superannuation, you will find that the standard rate in Australia is 9.5% of the employees’ salary. This amount varies and is predicted to rise up to 12%. The specific rate is required to be paid by default and is usually cut from your salary before you get your paycheck. You are also encouraged to exceed this threshold if you can afford to.
Is Superannuation Controlled by the Government?
Superannuation is controlled by the government in countries such as Australia. Actually, the government encourages you to put your money in a super account. The government is also responsible for setting the rate of minimum contributions by employees. This is why there is so much talk about the government and superannuation, both on websites and on social media.
What is the Advantage of Superannuation being Controlled by Government?
The main advantage of the process of superannuationand super accounts being regulated by the government is that your funds are safe. You cannot be scammed by your employer as the funds go directly to a super account and you can also monitor your superannuation. The government also will not charge you any tax on your superannuation funds.
Hiring a Superannuation Management Service
There are some companies which offer you the tools to manage your Superannuation Online. This helps you to avoid being scammed and losing any money as you can monitor the funds going into your account. You can also manage personal funds and synchronize them with your superannuation savings.