Superannuation for Generation Z Author: Jake Parma We’ve all heard how important super is. You may be asking, why should I be so concerned about money that I can’t touch for forty years? Here’s why: It forces you to save Saving isn’t easy. We all like to treat ourselves, but sometimes we overspend. The ‘superannuation guarantee’ contributions made on your employer’s behalf require special conditions to be released. There’s no better method of saving than forced saving! Moreover, the balance is invested based on the fund so you can relax and forget about it while it grows. You won’t depend on government welfare The availability of the age pension may make superannuation seem unimportant. But changes occur regularly – restrictions, changes to eligibility, and payments close to the poverty line. These are all reasons not to rely on the age pension alone. It can save you on tax Avoiding tax is illegal. Minimising tax is not. Once you have full-time work, voluntary contributions to super are taxed at 15% rather than your marginal tax rate. Despite forgoing part of your weekly salary, you are saving considerably in tax payable while accelerating the growth of your super balance. You can enjoy peace of mind in your golden years As you will be working the next 45 to 50 years, superannuation is too important to be overlooked. When you do retire, you’ll be able to look back and thank your younger self for making good choices regarding superannuation.     General Advice Disclosure: This document contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. If you decide to purchase or vary a financial product, your financial adviser, AMP Financial Planning and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/or a percentage of either the premium you pay or the value of your investment. Please contact us if you want more information.   Case Study Disclaimer: The Examples is illustrative only and is not an estimate of the investment returns you will receive or fees and costs you will incur.