Superannuation has been specifically designed and endorsed by the Federal Government as the preferred way to save for your retirement and has added tax benefits that make it particularly attractive.
Superannuation can be a tax effective way of building wealth for your retirement. The tax rates imposed on superannuation funds are generally much lower than your working margin tax rate. While at retirement your super account will reduce to zero tax (this will arise in cases including where you are 65 or if you have met the superannuation definition of retirement.
There are many ways you can make a contribution into superannuation; they can be generally split into two broad groups: concessional contributions and non-concessional contributions. Limits apply to the amount of contributions (both concessional and non-concessional). If you’re eligible, there are some other types of contributions that you may be able to make, where the amount contributed doesn’t count towards either of these caps. Where I can add value to your situation is review.
Superannuation benefits are restricted in that they generally cannot be accessed until the owner reaches their preservation age and has retired or, has reached age 65. Your preservation age is dependent on your date of birth. Once you reach your preservation age, you can receive a retirement income stream and the tax rate on income and capital gains tax is zero!!!