How to manage your super while self employed
20 March 2023
Self employed? It’s even more critical to prepare for the future.
Working for yourself means you don’t have to make any contributions to superannuation, which makes it easier for people to neglect their future financial security.
And quite a percentage of self-employed people fall for that temptation. People working for themselves have low super balances compared with salary earners, reported The Association of Superannuation Funds of Australia in research from 2018. Many have no significant savings for retirement at all.
But there’s several compelling benefits, both for the future and in the present, that make superannuation contributions an effective tool for the self employed to manage their money.
KEY POINTS
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Don’t ignore your super. It’s an effective way to save for the future.
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Contributions up to $27,500 are taxed at 15% – below most tax rates.
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Super is expertly invested, generally achieving greater gains than regular savings.
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It’s easy to make contributions online.