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Superannuation Service: Know Its Basics For A Secure Financial Plan
One of the most essential part of financially planning your future is to save for retirement. The retirement fund or Superannuation is something that we should plan for if we are to secure a bright golden year ahead of us. Most countries in the world mandates that every employee should dedicate a percentage of their wages to their retirement fund or superannuation once they started earning at work.
Though the management of these funds are in your hands and can be decided depending on your needs and wants, these funds are not accessible until the age of sixty five.
The availability of Superannuation services varies from one to the other, and you will be able to choose which one suits your needs. The choice is yours on which Superannuation services you find more beneficial for you. Below are some of the Superannuation services that you can avail.
1. Industry funds – these are the funds that are being run by either an employer association or unions. These funds are dedicated for one purpose only, and that is for the benefit of the association’s members. These are the types of funds that does not have any kind of shareholders unlike wholesale and retail funds.
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2. Wholesale Master Trusts – A Wholesale Master Trusts commonly referred to as a retail fund, has a firm or financial institution managing it for the benefit of selected employees.
3. Retail Master Trusts – Retail Master Trusts are managed by firms and financial institutions to cater the needs of only a single individual.
4. Employer Stand-Alone Funds – Employer Stand-Alone Funds on the other hand are managed by the employers themselves for the benefit of their employees. The Employer Stand-Alone Funds are individually structured funds and employees may or may not share the funds between them.
5. Public Sector Employees Funds – Public Sector Employees Funds are exclusive funds made by the government for government employees only.
6. Self Managed Super Funds – Self Managed Super Funds or the SMSF’s is something that is created by a small group of individuals ranging from five or less people. The Self Managed Super Funds are following strict rules and they are being supervised by the taxation office of the country. A trustee is the common name for the Self Managed Super Funds members, which are also essential fund members. On the contrary, these Self Managed Super Funds are more convenient compared to the traditional superfunds as you will have the freedom to suit the circumstances you have as well as your lifestyle. The hard part is you have to do it within the regulations imposed by the government.
7. Small APRA Funds – The SAF’s commonly known as Small APRA Funds are those that are created by independent groups of individuals with five or less members. Although, unlike the SMSF, the Small APRA Funds has trustees that are not members of the funds.