Australia has its fair share or senior citizens and elderly citizens. Like other residents, these individuals must prepare for retirement and their golden years. This is done via superannuation, which are essentially the arrangements people take to ensure they have enough funds for retirement.
When it comes to securing your retirement, employer contributions are simply vital. Like the 401-k plan in the United States, Australia has a similar fund set up for retired employees. This is required by law, and constitutes 9.5 percent of employee salaries and wages. In order to qualify, however, employees must have worked over 30 hours a week and earned more than $450 a month. Those under 18 or over 70 do not qualify.
In addition to employer contributions, personal contributions are also important. To ensure you are putting enough away for your retirement in Australia, speaking to an attorney or lawyer is helpful so as to develop alternative superannuation strategies. With years of extensive industry experience, they have the tools and expertise to monitor and even help set up retirement accounts for you and your spouse.
While personal contributions can include monies not earned from employment, they generally refer to income earned while employed. This, of course, is usually a part of your income that is put away for retirement use. According to the law, however, contributing more to your account than is permitted can result in additional taxes at 31.5 percent.
For most Aussies, investing in this form of retirement is beneficial. This is because it allows them to receive pensions, along with supplementary income. It also helps reduce their income tax liabilities across the board.
If you are nearing retirement in Australia, financial security is very important. With these types of investments, seniors are guaranteed financial protection during their golden years. If you are unsure on how to tap into these retirement benefits, simply speak to your employer or an attorney today.