The more you save in your working life, the more you will have in your retirement.
Most employees leave this “forced savings” the 9.5% (2015) SGC to the employers however you can take control of contributing to your fund via salary sacrifice over a longer period of time.
The average lifespan in 1970 was 71 years of age, in 2015 it has lengthened to 82 years of age, so therefore nowadays you could live for at least another 17 years after you retire – we need to start thinking about this now and prepare for the future. The idea of wealth accumulation is one where you save when you are most productive so that the money will be there when you most need it at retirement or if its needed in the unfortunate situation that you are Totally and Permanently Disabled.
An accumulation fund accumulates contributions and earnings to provide a benefit for you. Your final retirement benefit is therefore dependent on the amount of contributions made and the earning rate of the fund. Accumulation funds provide greater control over the selection of investment options as well as greater transparency of the fund’s administration. In contrast to defined benefit funds, investment returns are not guaranteed. As a result, the investment balance of an accumulation fund can go up and down with movements in investment markets.
To find out more call (02) 8268 2900 and speak to one of our Advisors, obligation free.
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