Superannuation in Australia explained | Super in 2021
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- Опубликовано: 23 июл 2024
- WARNING: THERE HAS BEEN LEGISLATION CHANGES SINCE THIS VIDEO WAS CREATED. CONTRIBUTION CAP LIMITS HAVE CHANGED, THE RULES AROUND CONTRIBUTING TO SUPER AND THE WORK TEST HAVE CHANGED.
If you are living and working in Australia, then there is no doubt that you are somewhat familiar with superannuation. It is retirement saving system that was thrust upon us back in 1991 when the government introduced the Superannuation Guarantee to force more people to save for their own retirement rather than rely on government support.
Since then, the system has grown considerably and today the total funds in superannuation sits at a whopping $2.9 trillion.
I have said it before, and I will say it again, I am a big fan of the superannuation system. If you understand how it works and you play by the rules, it is the most tax effective vehicle we have to invest through. So today I want to run you through the basics of exactly what super is and how it works.
Timecodes
0:00 - Intro
01:05 - Is super an investment?
02:06 - Choosing the right fund
04:02 - Contributing into super
08:00 - Accumulation phase vs pension phase
11:50 - What happens to your super when you die
Structuring Life insurance: • Structuring Life insur...
Should you start an SMSF: • Should you start a Sel...
Payment of Death benefits from superannuation: • Payment of death benef...
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I work in financial planning and this is an excellent summary! Well done!
Thank you 🙏
I love this! Thank you so much for sharing your valued knowledge 🤩
Thanks for watching, glad you liked it!
Excellent video! Am doing an TAFE assignment about superannuation and came across this video. I've subscribed for my own personal reasons and interest. Loved your flavour and delivery style. Again, excellent! And thank you again. Massive thumbs up!
Thanks, I'm glad you liked it. Hopefully it will help with that assignment!
Thank you, that was the best anyone has ever explained Super.
Thanks Jeff! I'm glad you found it helpful 👍
Great video! Thanks.
Thanks, glad you liked it!
What a great video. Nailed it I reckon.
Thanks 🙏
Thank you!❤
Thanks for the video. Do you have a video for "going from the Accumulation Phase (AP) to the Pension Phase (PP) and things you have to watch out for PLEASE! I am retired but still have my super balance "parked" before I make the decision of AP to PP. I'd appreciate any models of what could be set up please! Again, Thank You
Hey Fred, I don't currently have a video on the transition but it's a good idea and I will put it on my to do list for future videos. Thanks for watching!
you could argue there are 3 phases to super 1. accumulation 2. pension & 3 death (any the relevant taxes which apply to your beneficiaries.)
Indeed you could!
thanks for summarizing all the key points. May we choose our own ETF to invest from our super? And I don't understand how come we will get 15% tax in accumulation phase, we couldn't access the fund in this phase, why would that be taxed?
Any idea how the tax works if you’re on a work visa? Is the contribution still taxed at 15%? I think foreigners are allowed to remove their contributions if they’re leaving the country? Does it get taxed at a higher rate on leaving?
What most of us forget is that we are paying 10% GST. So you pay 15% going in, 15% on earnings and the 10% when spending. It’s become a bit of a hidden tax.
Hey mate! Thanks for the informative video! any thoughts on the new vanguard superannuation coming out in 2022? Also - the superannuation fund I'm with will be selling in 2022 (BT Super). I'm wondering if there's any benefit to waiting till after this sale to jump shit to another superannuation account. Cheers!
Glad you liked it! I'll do a deep dive into vanguards new super fund when it's released. With regards to BT, the sale shouldn't impact you as a member so I wouldn't factor that into your decision....
@@GuidedInvestor great thanks so much mate, will keep an eye out for it!
How does it behave when used as pension? Is pension given out on interest earned by the fund or just withdrawn from the fund?
The pension is withdrawn from the total balance of the fund. So if you draw down more than the fund is generating in income then you will start drawing down on your capital
Interesting question. Does the 10.5 percent employer contribution come out of the employer's pocket? From an accounting point of view is the compulsory contribution the employer has to make on behalf of their employee an expense to the company?
Yeah it technically comes out of the employers pocket and is an expense to the business (like a wage) but you have to remember that your employer is the one who sets your wage anyway so if they want to pay you 10.5% less to account for super contributions, they can...
What is the minimum drawdown each year with the pension ?
Hi Adrian, it depends on your age. It starts at 4% of your fund balance then increases all the way up to 14% as you get older. This financial however, the minimum has been halved due to COVID.
*taking notes furiously*
Super good
Tax bad
🤣 that about sums it up!
@@GuidedInvestor great video very well researched / executed
@@inflationistransitory thank you!
@@GuidedInvestor Why is tax bad? Surely we need to pay tax to fund the f'kn things society needs! That sort of simplistic comment does not give your channel any cred. How about we support superannuation, and also support a fair tax system that ensures everyone (including business) pays their fair share of tax, as decided by the govt of the day.
@@petrosinoz Peter your argument is more political than financial in nature and this is not a political channel
What does it mean to have "retired"?
Thats actually a great question and it depends on your age. Below 60, retirement is ceasing work with no intention to return. Over 60, the retirement condition is met simply by leaving your current employer
@@GuidedInvestor Thanks for the response. How does the government know that you've retired? What is the trigger that makes earnings within your super account go from being taxed at 15% to being tax free? Thanks so much.
This has my brain in a knot
🤣 which bit?
Super is the easiest way to save money, pay less tax....
Best loop hole ever if you are a dual national is to go back and work in your home country for 2-4 years and smash their super equiv and then come home and use the catchup caps . Have to super funds in two countries. Obviously pretty hard to pull off
Yeah that could work for the right person! Nice thinking 😉
Yeah, heaven forbid you should actually put in and commit to one country. What a sponge, you sound like you're after the absolute maximum reward for minimum effort, no surprise there however given your apparent attitude you'll get nowhere fast. Stop looking how to draw money from Australia and perhaps think how you might contribute as much as possible for the wealth/benefits of us all.
@@GuidedInvestor nice thinking or dubious intent?