Australians, in general, constitute some of the worst savers in the world. Current estimates suggest that, on average, Australians save just 4% of their income. This is less than half of the 11% estimate for Australians in the late 1970s.
In the past, pensions from taxpayers were used to provide pensions for senior citizens upon their retirement. However, because of the increased life expectancy of Australians coupled with the decrease in the average number of children per household, the use of pensions, if persisted with, will put a significant strain on the Federal Budget.
As a result, the concept of superannuation was introduced whereby employers are obligated via the superannuation guarantee to contribute at least 9% of an employee's wage to a superannuation fund which must be preserved until the employee has reached retirement before it can be accessed.
The advantage of making contributions to superannuation are that it introduces a form of forced savings for Australians into a fund which will hopefully invest the money into the appropriate assets for increasing its value over the long term.
As an added incentive, contributions to superannuation are only taxed at a marginal rate of just 15%. For most income earners in Australia, this will be more attractive than the usually high tax rate that they would be subjected to if their money was not put into superannuation.
A disadvantage of the superannuation scheme is that many Australians, particularly those who change employers regularly, are likely to have various small amounts of money in a number of separate superannuation funds.
This, in turn, can lead to a decrease in earnings as each fund will introduce any number of fees for maintaining the account. More significantly, a member account in a superannuation fund can possibly be forgotten in time and become unclaimed.
It is estimated that there is currently more than $7.2 billion of unclaimed and lost superannuation. This works out to about one in every three Australians who have money in superannuation and don't know about it.
As such, it is imperative that Australians take a proactive approach to superannuation by making sure they are always aware of which funds their superannuation contributions are being made to and by rolling over these amounts where practical into a consolidated fund each time they change jobs.
By doing so, one can avoid the difficulties involved in having to track down any possible lost money belonging to them after years of neglecting to pay attention to superannuation during employment.
Jonathan Bailey is a columnist for unclaimed superannuation, a website containing information on superannuation and how to track down lost and unclaimed super.
executive chauffeured services Bradford .. Madison to Airport carMillions of people give a lot of thought to financial... Read More
What is finance and what do you need to know?... Read More
I thought I was through with exams when I finished... Read More
You no longer look at the pictures of homes cause... Read More
Investing is a subject a lot of people don't want... Read More
The cries are heard from the distance, "I need help... Read More
If you want money you need to learn how to... Read More
One universal of humanity, no matter who you are or... Read More
We have heard a lot about consumers' personal information getting... Read More
You've decided you want a bigger, better and more desirable... Read More
Saving money is not easy and is made more difficult... Read More
Traditional checks probably won't disappear anytime soon, but processing checks... Read More
Our global society has had a wake up call in... Read More
Christians are called to be good stewards of God's resources.... Read More
Your food budget is the most flexible area of your... Read More
If you're like most people, your personal financial records are... Read More
Identity theft is a serious crime that continues to grow.... Read More
The Prudential has dubbed those who refuse to leave home... Read More
Do you struggle from week to week trying to make... Read More
It's the little things in life that make it interesting.... Read More
So, you've made the decision to apply for a credit... Read More
Saving for a Down Payment is hard work, so it's... Read More
We live in a crazy world. Someone ought to sell... Read More
I'm still amazed every time someone comes to me complaining... Read More
An avid cyclist and bike racing fan, I sit transfixed... Read More
O'Hare Chicago prom limo ..Women have a love/hate relationship with money. Most of us... Read More
Just about everyone has a checking account. Checks present easy... Read More
Traditional checks probably won't disappear anytime soon, but processing checks... Read More
You no longer look at the pictures of homes cause... Read More
1. Lighting & Light Bulbs Install low energy light... Read More
Recent findings from the Educational Policy Institute indicated that the... Read More
Good money management needn't be difficult. In fact, there a... Read More
It's the little things in life that make it interesting.... Read More
It is estimated that we, as consumers, waste an average... Read More
My personal opinion is that in today's new economy, it... Read More
It is possible to eat a healthy, balanced diet without... Read More
Saving for a Down Payment is hard work, so it's... Read More
Today I passed a thermometer at a bank that read... Read More
There have been an estimated 9.9 million victims on America... Read More
For months, we were trigger-swipe happy, putting our groceries, clothes,... Read More
I think most of us have at some point in... Read More
We live in a crazy world. Someone ought to sell... Read More
Sticking to a budget can be difficult, but with so... Read More
ID theft is a major consumer concern, though there is... Read More
Everyone needs to maintain their lives. What I mean by... Read More
Did you know that 43% of all married couples argue... Read More
Have you ever stopped to think about how your "mood"... Read More
Developing and living by a household budget is by far... Read More
Now that we are in the month of June I... Read More
The recommendations for military base closings have been released and... Read More
Personal Finance |