At some stage you have probably spent a little time thinking about what you want to do when you finally hang up the hat and retire. Crusing around the Caribbean, road tripping along the Australian coastline, starting a new hobby or spending quality time with friends and family may be some ideas that come to mind.
To help realise your retirement goals though, you may want to think about how to prepare yourself financially for the road ahead. One of the key tools Australians use to build their savings for retirement is superannuation.
Superannuation is money put aside into a super fund by your employer for you to use as a form of income when you retire. According to ASIC’s MoneySmart website, super can be a tax-effective way to invest and save for retirement, as contributions, earnings and withdrawals from your super fund are usually taxed at a lower (concessional) rate.
While the Australian Government offers an age pension to eligible individuals, the amount received may not necessarily be sufficient to sustain the lifestyle you want in retirement. As such, many Australians rely on their super to supplement or substitute the age pension once they retire.
For more of the rundown of some of the basics of superannuation, including how to read your super statement and choose a fund that is right for you, sign up to receive our guide direct to your inbox.
Cover image source: goodluz (Shutterstock)