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Superannuation - do you have enough?
May 2007
With
the aging of the Australian population and the pressures this will
inevitably put on the old age pension, the federal government is
keen to encourage the Australian population to increase their
superannuation balances. Whilst the super system as a whole
continues to grow, a lot of Australians still need to dramatically
increase their own super if they are to enjoy even a reasonable
level of retirement.
One
of the major reasons for the need for higher super balances is
people are now living longer. The average life expectancy for males
is now over 80 years of age, and for females it is over 85 years of
age.
However life expectancy is not an exact science and although some
people will not reach their life expectancy, many will live past it.
The table below indicates estimated probabilities of survival to
selected ages showing us that reaching the ripe old age of 95 (and
above) is not too improbable!
It has been estimated
that to live on an annual pension of $45,000 you will need a super
lump sum of over $600,000. One way to increase your super is to act
now and let compound interest over the decades ahead help grow your
super balance.
Recently the government
has brought in major new reforms to the superannuation industry
including;
-
make a tax free contribution of up to $1,000,000 to your super
fund by 30 June 2007
-
make up to
$150,000 pa in super contributions tax free after 30 June 2007
-
receive an
unlimited tax-free income stream from your super fund at age 60
or over from 1 July 2007. Pay no tax on earnings within the fund
during this pension phase.
-
receive unlimited
tax-free lump sums from your super at age 60 or over after 1
July 2007
If
you do not have enough or do not want to set up your own Self
Managed Super Fund, why not look at joining the Lindfield
Superannuation Fund, a sub fund of Grosvenor Pirie Master
Superannuation Fund - Series 2. Refer to the
product disclosure statement for
more information on the Lindfield Superannuation Fund.
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