Question about super

[NakedDeadGuy]

Gday all, my first post on the money board. I started work (and paying into super) in 1989, and have recieved annual staements that I've never taken any notice of since then. My redundancy/resignation benefit had gone up every year until about 1999, and it's stuck on the same fugure since then. Was there a change in law? My preserved benefit has gone up each statement, but the non preserved has stopped. Is this right?

When I first started as a 15 year old, they told me to average 5% over my working life into super - I've paid 10% since then - is this right as well? And by all rights, could I now pay nothing into super for 15 years and still get maximum employer benefit? I'm not planning on living past 50, so I see anything I'm putting away now as a waste.

 

[Frodo]

I don't really understand about redundancy/resignation benefit. What has it got to do with super?
All employer contributions are preserved. If you paid in post tax dollars they are non preserved. If you salary sacrificed they are preserved.

IMO a young person needs to secure a home then get into a positive cash flow position so they can invest, as soon as possible. Super has tax benefits but can and will be manipulated by governments as the tax burden for an increasing numbers of pensioners grows. I would, therefore, not top up super payments until at least 40.

 

[1jasonoz]

Your benefit is frozen as at the 1st July 1999, as ALL contributions, employer and employee, must be preserved until you reach retirement age, and access your superannuation.

Frodod the bit about not topping up super until you are 40 is not totally correct. I have had 18% super going into my super fund for the last 16 years(33 years old), and the wonders of compound interest mean that i now have a very large sum of money sitting there, which will only get bigger as it keeps compounding until i retire. But yes getting the mortgage paid of is the number1 priority for the young.

 

[Daniel28]

Originally posted by NakedDeadGuy
Gday all, my first post on the money board. I started work (and paying into super) in 1989, and have recieved annual staements that I've never taken any notice of since then. My redundancy/resignation benefit had gone up every year until about 1999, and it's stuck on the same fugure since then. Was there a change in law? My preserved benefit has gone up each statement, but the non preserved has stopped. Is this right?

When I first started as a 15 year old, they told me to average 5% over my working life into super - I've paid 10% since then - is this right as well? And by all rights, could I now pay nothing into super for 15 years and still get maximum employer benefit? I'm not planning on living past 50, so I see anything I'm putting away now as a waste.

Yes, there was a change in law the supranuation act of 1998. It clearly states that after the bank feel your benefits have rose over the past anums your super benfits will stay as per usual. Yes it is correct for this to happen, don't worry the same thing happened to my brother Zac.

I have always beleived that you should be saving 10% (if not more) of your total income at the end of every year. No you could not just pay nothing into you super for 15 years and still get mximum employer benefit, how could you even expect that?

 

[Mike33]

Lets get this straight....

You don't plan on living past 50, yet you are discussing your money on an internet message board? I think you're gonna have to rethink your prioraties......