By: Peter Jensen
Submitted: 2009-12-20 22:37:10 | Word Count: 640
Prosperity Group International advocate the implementation of self managed superannuation funds as this method of saving for retirement allows people more freedom to choose their own investments. Managing your own superannuation can be rewarding, both financially and personally. Superannuation is an integral part of the current retirement income system initiated by the Federal Government in order to assist with saving for retirement with the added bonus of tax concessions.
Who Is Entitled To Receive Superannuation?
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A large number of employers in Australia have been required to make compulsory contributions to superannuation on behalf of most of their employees since 1 July 1992 under a (then) new system known as the Superannuation Guarantee (SG). Although there have been a number of changes and reforms over the years, the SG is still in place and is now catering to a wider spectrum of financial retirement needs. Most full time, part time and casual workers in Australia are legally entitled to receive superannuation contributions from their employers. It is important to note however, that not all employees are eligible to receive super. For comprehensive advice on individual superannuation needs it is recommended you see a financial advisor specialising in that field to establish whether or not you qualify to receive super contributions from your employer.
Is There Going To Be Enough Saved To Support Retirement?
Whilst the establishment of the Superannuation Guarantee was an encouraging move toward providing security in retirement, many people have found they simply do not have enough money accumulated in order to take retirement at the recommended age. Hence, they continue working well past retirement age in order to maintain a reasonable lifestyle. In recognition of this dilemma, companies such as Prosperity Group International are offering immediate solutions in regard to various investment opportunities in order for their clients to be able to better enjoy their retirement.
Who Usually Manages Superannuation Funds?
Superannuation has traditionally been managed by a number of superannuation funds throughout the country, most of them were initially set up to cater to a variety of industries. They essentially operate as trusts with trustees being responsible for the overall management of funds, including the implementation of investment strategies. The obligation of the trustees also involves investing any superannuation monies responsibly, with special consideration being given to diversification and liquidity. It is not necessary to choose a super fund immediately upon commencement of your employment. If you don't make a choice, your super contributions will be paid into a fund chosen by your employer. However, you can choose a fund to suit your requirements at a later time.
Why Thousands of People Self-Manage Superannuation
In response to poor performance figures from their super fund managers, a large number of people are now taking retirement planning into their own hands with self-managed superannuation. This has become the fastest growing sector of the superannuation industry, with more than $330 billion worth of assets. There are now more than 400,000 Self-Managed Superannuation Funds. One of the major attractions of DIY super is the ability to borrow funds in order to invest in residential or commercial property with tax breaks on the income.
Those who embark on self-managed super funds can now choose how their super is invested. Some fund investment strategies offer higher returns with higher risks, while others offer lower returns with greater security. The choice is up to the individual and their own requirements, provided they are eligible to choose their own super fund.
Author Resource:-
Prosperity Group International continually strive to increase the financial wellbeing of their clients by developing products and systems that generate ongoing cash flow, with minimal risk, outlay and time input. Find Prosperity Group International (PGI) at www.pgi.net.au Visit PGI for more information
