Amazines Free Article Archive
www.amazines.com - Tuesday, May 26, 2020
Read about the most recent changes and happenings at Amazines.com
Log into your account or register as a new author. Start submitting your articles right now!
Search our database for articles.
Subscribe to receive articles emailed straight to your email account. You may choose multiple categories.
View our newest articles submitted by our authors.
View our most top rated articles rated by our visitors.
* Please note that this is NOT the ARTICLE manager
Add a new EZINE, or manage your EZINE submission.
Add fresh, free web content to your site such as newest articles, web tools, and quotes with a single piece of code!
Home What's New? Submit/Manage Articles Latest Posts Top Rated Article Search
Google
Subscriptions Manage Ezines
CATEGORIES
 Article Archive
 Advertising (133359)
 Advice (161073)
 Affiliate Programs (34739)
 Art and Culture (73727)
 Automotive (145702)
 Blogs (75112)
 Boating (9843)
 Books (17221)
 Buddhism (4126)
 Business (1328903)
 Business News (426348)
 Business Opportunities (366300)
 Camping (10965)
 Career (72749)
 Christianity (15847)
 Collecting (11638)
 Communication (115065)
 Computers (241959)
 Construction (39001)
 Consumer (49683)
 Cooking (17062)
 Copywriting (6580)
 Crafts (18205)
 Cuisine (7543)
 Current Affairs (20407)
 Dating (45786)
 EBooks (19689)
 E-Commerce (48211)
 Education (185289)
 Electronics (83505)
 Email (6398)
 Entertainment (159861)
 Environment (28941)
 Ezine (3039)
 Ezine Publishing (5447)
 Ezine Sites (1550)
 Family & Parenting (110917)
 Fashion & Cosmetics (196405)
 Female Entrepreneurs (11843)
 Feng Shui (130)
 Finance & Investment (310391)
 Fitness (106313)
 Food & Beverages (62900)
 Free Web Resources (7938)
 Gambling (30231)
 Gardening (25129)
 Government (10521)
 Health (629805)
 Hinduism (2205)
 Hobbies (44051)
 Home Business (91565)
 Home Improvement (251396)
 Home Repair (46159)
 Humor (4831)
 Import - Export (5453)
 Insurance (45142)
 Interior Design (29575)
 International Property (3485)
 Internet (190994)
 Internet Marketing (146382)
 Investment (22837)
 Islam (1167)
 Judaism (1356)
 Law (80563)
 Link Popularity (4593)
 Manufacturing (20843)
 Marketing (98841)
 MLM (14136)
 Motivation (18213)
 Music (27012)
 New to the Internet (9494)
 Non-Profit Organizations (4048)
 Online Shopping (129620)
 Organizing (7803)
 Party Ideas (11856)
 Pets (38078)
 Poetry (2234)
 Press Release (12681)
 Public Speaking (5632)
 Publishing (7524)
 Quotes (2407)
 Real Estate (126636)
 Recreation & Leisure (95330)
 Relationships (87567)
 Research (16163)
 Sales (80327)
 Science & Technology (110237)
 Search Engines (23468)
 Self Improvement (153122)
 Seniors (6235)
 Sexuality (35945)
 Small Business (49307)
 Software (82997)
 Spiritual (23471)
 Sports (116108)
 Tax (7659)
 Telecommuting (34068)
 Travel & Tourism (307694)
 UK Property Investment (3121)
 Video Games (13428)
 Web Traffic (11731)
 Website Design (56836)
 Website Promotion (36579)
 World News (1000+)
 Writing (35781)
Author Spotlight
MARVELL LAWSON

Marvell Lawson is an author, professional speaker, and communication coach who works with individual...more
ELLISEN WANG

I'm Ellisen, nice to meet you! Obviously you're here because you want to know who I am. Wel...more
JULIANA FOLEY

I am a single mother of a beautiful little girl. I like ghost hunter wednesdays. I love Oreo's dippe...more
S.M. AZIZUR RAHMAN

Hi,I am a freelance writer, blogger and digital marketing professional. To find my contents, please ...more
PANKAJ RATTAN

I am Pankaj Rattan. I am a B.tech student. I love to ride my bike and play cricket. And i also love ...more


The Shocking Truth about Super Co-Contributions by Rob Bourne





The Shocking Truth about Super Co-Contributions by
Article Posted: 12/05/2009
Article Views: 223
Articles Written: 37
Word Count: 672
Article Votes: 0
AddThis Social Bookmark Button

The Shocking Truth about Super Co-Contributions


 
Business,Finance & Investment,Investment
If losing money was a crime, there would be over 2 million Australians facing trial every year. That’s how many Australians are throwing money away by not participating in the government’s superannuation co-contributions scheme.

The scheme was introduced in 2003 and designed to help low to middle income earners build on their superannuation for retirement. It’s been well documented that the majority of people will not have sufficient savings at retirement to enjoy a ‘comfortable’ retirement. The Association of Superannuation Funds of Australia defines this as an annual income of around $51,000 for a couple or $38,000 if you are single. A ‘modest’ income is defined as approximately $28,000 for a couple.

Despite compulsory employer superannuation of 9%, many Australians will fall well short of being able to reach this type of income. Particularly low to middle income earners and people who may not work for many years of their lives while raising a family. Come retirement, these people will rely more on government support just to achieve a ‘modest’ income let alone getting anywhere near to a ‘comfortable’ retirement.

Hence, the government’s incentive to avoid this problem, by encouraging low to middle income earners to save more for retirement, by giving away free handouts. At least $1,000 every year if you earn less than $31,920. For every dollar you earn over that figure the co-contribution is reduced by 3.33 cents which means you can still receive a part co-contribution until your income reaches $61,920. All you have to do is save less than $3 a day into super and the government will match it. That’s a return of 100%.

And by 2015, the government will increase their contribution to $1,500. Where else can you get that sort of return on any investment? 150%!

And its government guaranteed. And yet so many Australians are throwing money away by not participating in the scheme. According to the Australian Bureau of Statistics there are approximately 10.8 million people in the workforce and included in that figure are approximately 3.2 million part time workers.

3.2 million part-time workers who would all, most likely, be earning less than $32,000 p.a. There are also many full time workers who would be earning under $32,000 p.a. Many 16 – 21 year olds would fall into this group. So we have at least 3.2 million people and probably closer to 4 million Australians who would qualify for the super co-contribution scheme and yet according to the Australian Taxation Office’s Co-Contribution Annual Report for 2008 only 1,278,957 people participated in the scheme.

That’s over 2 million people throwing away the opportunity of making guaranteed returns up to 150%. Let’s not forget also, that many of these people may earn less than $32,000 for many years and even more may never earn $32,000 in a year throughout their whole life.

If an 18 year old participated in the scheme until retirement at 65 (assuming they earned under $32,000p.a. throughout their life), they could end up with a super balance of $2,425,368.

Not bad, for less than $3 a day.

With a balance of $2.4 million you can afford a lot more than even a ‘comfortable’ lifestyle.

This assumes a saving of $1,000 a year and getting a net return of 8% p.a. plus franking credits as shown in the attached table.

So, if you think that low income earners cannot retire wealthy, then think again. The government superannuation co-contribution scheme is more than generous and a great way for the younger generation to build a substantial sum for retirement.

Rob Bourne has been involved in the financial services industry for over 35 years. As a practising financial adviser he focuses on the need for practical and down to earth financial education. The aim is to educate people through financial education so they can take control of their own financial future. Visit Rob's website here for more information on business opportunities, investing and financial education.

Related Articles - Superannuation co-contributions, government super co-contributions, super co-contributions, ,

Email this Article to a Friend!

Receive Articles like this one direct to your email box!
Subscribe for free today!

 Rate This Article  
Completely useless, should be removed from directory.
Minimal useful information.
Decent and informative.
Great article, very informative and helpful.
A 'Must Read'.

 

Do you Agree or Disagree? Have a Comment? POST IT!

 Reader Opinions 
Submit your comments and they will be posted here.
Make this comment or to the Author only:
Name:
Email:
*Your email will NOT be posted. This is for administrative purposes only.
Comments: *Your Comments WILL be posted to the AUTHOR ONLY if you select PRIVATE and to this PUBLIC PAGE if you select PUBLIC, so write accordingly.
 
Please enter the code in the image:



 Author Login 
LOGIN
Register for Author Account

 

Advertiser Login

 

ADVERTISE HERE NOW!
   Limited Time $60 Offer!
   90  Days-1.5 Million Views  

 

Great Paranormal Romance


STEPHEN BYE

Steve Bye is currently a fiction writer, who published his first novel, ‘Looking Forward Through The...more
LAURA JEEVES

At LeadGenerators, we specialise in content-led Online Marketing Strategies for our clients in the t...more
ADRIAN JOELE

I have been involved in nutrition and weight management for over 12 years and I like to share my kn...more
SUSAN FRIESEN

Susan Friesen, founder of the award-winning web development and digital marketing firm eVision Media...more
JOANNE IRELAND

Joanne Ireland, a 30-year veteran of the meeting and event planning industry, is Founder and Preside...more
GENE MYERS

Author of four books and two screenplays; frequent magazine contributor. I have four other books "in...more
JOANNA MORGAN

Joanna Morgan has a huge passion for making money online from home and enjoys traveling around the w...more
STEVERT MCKENZIE

Stevert Mckenzie, Travel Enthusiast. ...more
GITESH TRIVEDI

Working as Technical Lead in Dbametrix Solutions. Have an experience of 12+ years in Oracle domain. ...more
JASON NG

Jason Ng has a huge passion for the health and fitness industry as he strongly believes that having ...more

HomeLinksAbout UsContact UsTerms of UsePrivacy PolicyFAQResources
Copyright © 2020, All rights reserved.
Some pages may contain portions of text relating to certain topics obtained from wikipedia.org under the GNU FDL license