Employer super payments may be increased to 12%
Earn over $71 and they aren't entitled to any of the aged pension, is what I should have said.
Jul 10th 2010, 7:43 am
#32
Forum Regular
Joined: Jan 2010
Posts: 188
Re: Employer super payments may be increased to 12%
The official website:
http://www.futuretax.gov.au/pages/default.aspx
The 9% superannuation contribution is the MINIMUM which MUST be contributed.
For some time those under 50 can OPTIONALLY contribute up to a total of $25,000 per year at the concessional tax rate of 15%; those over 50 can currently and will continue after 2012/June/30 to be able to OPTIONALLY contribute up to $50,000 per year (after 2012/June/30 only if their super fund is worth less than $500,000).
These caps were halved by the Labor Government.
http://www.deewr.gov.au/Department/D...below_500K.pdf
A 35 year old starting with a zero balance contributing $25,000 per year into a superannuation fund yielding 8% per year and taxed at 15% on contributions and yield would have a balance of $1,416,132 at age 60.
With inflation of 3% per year the balance would be worth 46.7% or $661,297 in today's money and yield $104,485 per year or $48,792 in today's money.
(If the $50,000 concession persists the 60 year old's balance could be $1,747,999)
http://www.futuretax.gov.au/pages/default.aspx
The 9% superannuation contribution is the MINIMUM which MUST be contributed.
For some time those under 50 can OPTIONALLY contribute up to a total of $25,000 per year at the concessional tax rate of 15%; those over 50 can currently and will continue after 2012/June/30 to be able to OPTIONALLY contribute up to $50,000 per year (after 2012/June/30 only if their super fund is worth less than $500,000).
These caps were halved by the Labor Government.
http://www.deewr.gov.au/Department/D...below_500K.pdf
A 35 year old starting with a zero balance contributing $25,000 per year into a superannuation fund yielding 8% per year and taxed at 15% on contributions and yield would have a balance of $1,416,132 at age 60.
With inflation of 3% per year the balance would be worth 46.7% or $661,297 in today's money and yield $104,485 per year or $48,792 in today's money.
(If the $50,000 concession persists the 60 year old's balance could be $1,747,999)
As the funds have not averaged 8% annual growth yet ,why would they average 8% in the future.If you want to believe that the calculations of higher returns than they have achieved ,and lower inflation rates are true ,then give them your money.
Geordie Downunder
