It may not seem like it now but, aside from your family home, your superannuation balance is likely to be your biggest asset when you retire.
You might think of super as just a percentage deduction from your salary that you can’t access. However it’s important to remember that it’s your money, it’s just being held for you until you retire. The main idea behind superannuation is to help you build sufficient savings that will help fund a source of income for you in your retirement years.
Superannuation is an important part of your retirement strategy for a number of reasons including:
- The Age Pension ($21,908 for a single person, as at 1 July 2014) may not provide enough funds for a comfortable retirement lifestyle.
- You may not be eligible for the Age Pension.
- You may spend over thirty years in retirement and you may outlive your retirement savings.
- The government offers attractive tax incentives.