WA Super News
Why super is, well, super
Superannuation, for most people, most of the time and for most of their lives is boring. The kind of boring that transcends scrolling through your Facebook feed at one in the morning or sitting in a waiting room listlessly turning a dog-eared page of Reader’s Digest from when big hair was a thing. To be honest, we’re a little surprised you clicked on this link. But we’re glad you did, so please read on.
Why is super such a big deal?
Simply put, Super is your money contributed by you and your employer over your working life. It’s designed so you can live comfortably in retirement. It’s your Plan B when Plan A, winning Lotto or an inheritance from a long-lost Aunt, doesn’t quite pan out.
But the day-to-day of super investing is boring. Much like grass, super will grow but over many years. While this happens, you don’t really have much to do with it. So, yes, it’s boring. Until it’s time for you to retire. Then super gets quite a bit interesting because it could be your largest asset next to your home. Oh, and let’s not forget that Super enjoys special tax treatments from the government, so it’s one of the most tax effective ways to save. See! Super can be exciting.
The benefits of saving through super
The average Australian can expect to spend around 20 years in retirement. The Age Pension is designed to meet only the most basic needs – food, power, cask wine, the odd scratchie. That means that the more you save now, the more comfortable and enjoyable your retirement years may be.
Paying a little more attention to your super today can make all the difference. You can start here with WA Super’s top six reasons why super is super:
- Investment earnings are taxed at a maximum of 15%¹, rather than your marginal tax rate which can be as high as 47%²
- If you choose to contribute into your super via salary sacrifice, your contributions are taxed at 15% rather than at your marginal tax rate³
- You get access to a diverse range of investments that invest in assets throughout the world, which ordinarily you may not be able to access
- Getting life insurance through super means premiums are usually lower and automatically deducted from your super account
- If you are 60 or over, your pension payments and lump sum withdrawals* are not taxed
- And our favourite, when you hit 60 years of age and you are in the pension phase all investment earnings are tax free!
Is your super on track?
So, super is super, but how’s yours going? WA Super has a new, totally non-boring SuperClick Advice tool. It’s a self-guided digital advice tool available in Member Online that uses your own WA Super account information to see how you’re progressing towards your retirement. It can also suggest specific actions that you can take to help you get there. It’s super.
If you’d like more information or want to sign up to become a member, please email firstname.lastname@example.org or call 08 9480 3500.
Information in this article is general in nature and doesn’t take into account your personal objectives, situation or needs. Before making a decision about WA Super, read our product disclosure statement at wasuper.com.au.
WA Local Government Superannuation Plan Pty Ltd ABN 64 066 797 162, AFSL 269006, as Trustee for WA Local Government Superannuation Plan ABN 18 159 499 614 (trading as WA Super).
¹For accumulation accounts and transition to retirement income streams
²Based on 2018-2019 individual income tax rates
³There are limits on how much you can contribute into your super account. If you exceed the contribution limits, you may have to pay extra tax.
*You can make withdrawals from your superannuation account if you satisfy a condition of release.