When it comes to superannuation, people grasp the concept that it is a savings plan for their retirement, but is something they do not want to spend much time learning or understanding about. Simply put, superannuation is a government initiated investment scheme designed to help fund your retirement.
The money comes from contributions made into your super fund by your employer and can be added to with your own money over the years. The government can also add to it through co-contributions and the low-income super contribution.
If you are employed, your employer must currently pay 9.5% of your salary into a super fund. Over the course of your working life, these contributions add up, and are invested by your super fund so it grows over time.
The government also provides tax concessions which make it the most effective way to save for retirement.
