The Australian super system is not just an incredible way to increase retirement savings, it is beneficial for super fund members too. It is still not a popular fact, but people are starting to know about it gradually. Therefore, if you have chosen the right type of super fund, you are most likely to benefit from the several helpful services and of course the freebies. This blog is all about it, and if you are looking for an online SMSF consultation, then that’s a great idea too.
What are the most common super fund perks that will improve your financial condition?
Here is a list of a few ways out of many in which you can benefit being a SMSF customer. Besides, your financial situation will undoubtedly improve when you get so many benefits, and that too without putting in much effort at all.
Reduction in income tax amount
For people who have done even the minimum research about SMSF, it remains no secret that with Super, it becomes easier to get income tax reduction on the total annual amount. If you can successfully arrange for a salary sacrifice set up with the employer, it is possible to swap the regular income tax figure with the reduced super tax rate which is 15% lower. However, if your employer does not approve your request, it is also possible to contribute personally and claim a tax deduction. Its according to a rule that was passed in 2017 that anyone below the age of 75 is eligible to claim tax deduction against personal contribution. You may check the latest figures to be sure about the rest.
Medical insurance is covered
If you have invested in one of the larger super funds, then it is most likely that it will cover any permanent disability or death amount. Why is it better than regular medical insurance? Simple! You don’t have to get a medical test done as a proof to recover the insurance protection amount at any time. This automatic coverage benefit is especially preferable for people who are unable to afford an annual premium beyond the super fund. Another factor that seems to be a major benefit is that unlike other medical insurance conditions, the super fund does not exclude coverage for pre-existing or chronic problems such as diabetes or cardiovascular issues.
You control where your money goes
Challenging super fund benefits is now becoming a very common phenomenon, especially due to disgruntled relatives and family members. Therefore, you must know what to do so that the amount you save only goes to the people you want, when you are not there. The best option to ensure the same is to sign the BDBN or the Binding Death Benefit Nomination. Besides, if you have signed a proper agreement, then the super fund team will ensure that your special wishes, if any, are also taken care of. Also, no disgruntled beneficiary will be able to claim the amount.
While the points mentioned above are just the primary ones, there are several other benefits that you are entitled to when you invest in super funds.