Superannuation is a form of wealth accumulated for the primary purpose of providing financial support for members in their retirement. It is a special category of investment structure legislated in the Superannuation Industry (Supervision) Act, 1993 (the SIS legislation). Superannuation is not an investment product however, it is a very effective structure under which to accumulate wealth. These accounts operate under the SIS legislation with a Trust Deed as the founding document. Trustees under these deeds have very stringent duties and obligations – and their actions are subject to the review of auditors; and of ‘the regulator’. (In most cases the regulator is the Australian Taxation Office – the ATO.)
Continuum Financial Planners Pty Ltd has a team of advisers who are very experienced in a range of wealth management matters. We have skills and strategies that will help you to optimise the value of your nest egg as you accumulate wealth for your retirement. We offer our advisory services under our mantra, that…
‘we listen, we understand; and we have solutions’, that we deliver
in ‘personalised, professional wealth management advice’
What types of superannuation account are available?
Various formats under which your retirement nest egg can be accumulated include personal, employee, corporate and self-managed super accounts.
Personal superannuation accounts are more usually utilised by clients who are mobile in their careers. They generally suit the self-employed, or people who want flexibility and transparency surrounding their account. This type of super account is also popularly used to hold tax-effective life insurance protection.
ContinuumFP provides advice on employee superannuation accounts on behalf of employers who engage us to advise on the adoption of a ‘default fund’ for choice of super requirements. Employees benefit from the fact that in the event that they leave the employer’s service, their account can automatically convert to a personal superannuation account. In many such situations they retain the benefits established under the employer group.
Corporate superannuation accounts are less frequently encountered as public offer funds become more cost effective for employers. They were generally established –
- for the exclusive benefit of employees in particular entities; and
- in compliance with the employer’s superannuation guarantee obligations,
but required the employer to manage the investment process (including engaging employees in investment policy decisions); and in many cases, to fund the administration costs.
Self-managed superannuation accounts are used in a range of circumstances, by accumulators who have significant funds under superannuation, likely to be continuing to make significant contributions into the future and who are prepared to take an active role in the ongoing management of the account and its investment portfolio. There are significant trustee responsibilities – and additional administrative costs involved in this style of account; but the rewards can be well worthwhile if the circumstances are appropriate.