The document discusses Ashish Banjit's superannuation (retirement) savings. It explains that as a male born in 1975, Ashish can access his super funds at age 60 and must ensure the savings will last him the 20 years until the average life expectancy of age 80. Employers are required to contribute a minimum of 9.5% of an employee's salary to their superannuation fund. NGS Super is recommended as the most appropriate fund for Ashish due to its focus on the education sector and low fees. Ashish further boosts his savings by having additional pre-tax contributions deducted from his pay and added to his super account.
The document discusses Ashish Banjit's superannuation (retirement) savings. It explains that as a male born in 1975, Ashish can access his super funds at age 60 and must ensure the savings will last him the 20 years until the average life expectancy of age 80. Employers are required to contribute a minimum of 9.5% of an employee's salary to their superannuation fund. NGS Super is recommended as the most appropriate fund for Ashish due to its focus on the education sector and low fees. Ashish further boosts his savings by having additional pre-tax contributions deducted from his pay and added to his super account.
The document discusses Ashish Banjit's superannuation (retirement) savings. It explains that as a male born in 1975, Ashish can access his super funds at age 60 and must ensure the savings will last him the 20 years until the average life expectancy of age 80. Employers are required to contribute a minimum of 9.5% of an employee's salary to their superannuation fund. NGS Super is recommended as the most appropriate fund for Ashish due to its focus on the education sector and low fees. Ashish further boosts his savings by having additional pre-tax contributions deducted from his pay and added to his super account.
The superannuation (a way of saving so an employee has some
money in retirement) is a scheme designed so that when employees reach their expected retirement age they can retire with enough money to survive and pursue their dreams before they die. We can calculate that because Ashish is male and was born in July 1975, that the earliest he can access his super (superannuation) is at the age of 60 (ASIC, 2015). Ashish on average will live to around 80 years of age (Australian Government, 2014) and so if he does choose to retire and access of his super at 60, he has to make sure that the money saved from super and other bank accounts can support him for at least the next 20 years. Every Employer has to contribute to their employees Superannuation fund a minimum of 9.5% of their wage or salary (Australian Government, 2014). If an employee is earning a salary of A$95,000, her employer has to provide her with a superannuation Guarantee of 9.5% to contribute to her super every year, giving A$9,025 contributed to her super and A$104,025 in total. There are many types of super funds that Ashish can choose to use however the most appropriate for him is NGS Super an industry super fund. NGS Super is the right one for Ashish because it focuses education and community-focused organisations providing members like Ashish with low fees and teacher benefits (NGS Super, n.d.). Ashish also boosts his superannuation savings by having his employer deduct extra money from his wages or salary (before tax is taken out) and contributing it to Ashishs super account (ASIC, 2015).