Super is undoubtedly highly complex and ever-changing. Some of the most significant changes in recent times are those that were announced in the 2006 and 2016 Federal Budgets, and then legislated.
Financial success can hold a different meaning for all of us. Despite this, financial success is often linked to something we all tend to have in common, financial goals—our vision for the future. This vision can often centre on retirement (and our desired retirement lifestyle) and the accumulated wealth needed to support it.
The financial lifecycle model is a simple framework to help you understand wealth accumulation and cash flow generation—your progression from financial dependence to independence.
When it comes to retirement, ASFA estimates that the lump sum savings needed to support a comfortable lifestyle in retirement is $640,000 for a couple. Please note: This assumes a partial Age Pension entitlement.
When it comes to building and maintaining wealth, super is widely considered to be one of the most tax-effective investment structures available. This is particularly evident when considering the tax treatment of income and capital gains from assets held inside super, both in the accumulation and retirement phases.