Going for superannuation is not at all a bad choice and as the amount in this fund is tax free or has less tax then it is highly recommended to employee as well as employers to invest the maximum upper limit in this fund scheme. The benefits of this scheme are unlimited and one can get the amount after being retired which is quite helpful for him in old age. People often talk about the advantages of this scheme and this is the leading advantage of the superannuation scheme. In addition to this the amount invested in this scheme has a lesser rate of tax on it. This tax is not same in all the countries but one thing that is sure is that it is always lesser than the general tax on the income that every citizen has to pay. Commonly there kinds of advantages of superannuation and they are:
Preserved advantages or benefits €” Generally what happen is that some of the employees withdraws their funds from their superannuation funds before the actual time and thus the preserved benefits are actually the benefits that are necessary to retained back in the superannuation fund prior to the preservation age of the employee. This condition is not applicable in all the circumstances and in some of the situations which are quite restricted. At present all the employee has to wait till they are having the age of 55.
Restricted non preserved benefits- These benefits are not preserved but cannot be accessed under any situation until the employee meets any one condition of release For example termination from the jobs.
Unrestricted non preserved benefits- These benefits don’t actually need a situation of release and most of the time accessed when the worker request for it. Worker often has lastly satisfied a situation of release and thus they decide not to access the money in the superannuation fund.
These benefits are same in almost every country which follows superannuation fund scheme. The employees have the option to change their superannuation fund to a superannuation fund that is better performing and they can change it any time. In addition to this when they see other superannuation fund with a low fee they can also switch to it anytime. The change option for Australian citizens was given on the first July 2005.
More information can be found on the internet as many sites reveal the actual facts and data.