AYB240 Study Guide - Midterm Guide: Automatic Packet Reporting System, Wealth Management, Financial Planning Association
Document Summary
Topic 1- introduction to superannuation: personal contributions (salary. What is superannuation: form of savings and investment enabling people to save during their working lives to provide money in their retirement. Investment vehicle or structure holding assets accessed via membership of a superannuation fund: note: (cid:858)pe(cid:374)sio(cid:374)(cid:859) is the te(cid:396)(cid:373) used i(cid:374) (cid:373)ost other countries to refer to employment-related retirement savings. I(cid:374) aust(cid:396)alia, (cid:858)pe(cid:374)sio(cid:374)(cid:859) usuall(cid:455) (cid:396)efe(cid:396)s to the means-tested government- provided age pension (not employment-related) Retirement income policy: 3-pillar approach: mandatory contributions sacrificing or contributions when claiming a tax deduction, after-tax contributions (non- concessional contributions) Tax and other incentives to encourage individuals to save voluntarily: government-provided age pension. Social security providing a safety net (means tested) Why do governments have retirement income policies: ageing population. Longer life expectancy: fewer taxpayers, greater lifestyle expectations. A(cid:374) i(cid:374)defi(cid:374)itel(cid:455) continuing fund established as a legal trust in order to provide benefits to fund members or their dependants upon the sickness, death or retirement of the member.
