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A Guide to SMSF for Self Employed Workers

Self Employed Workers

For a large number of workers in Australia, having a superannuation fund set up gives them certain financial security and solid base for the future, furthermore enabling them to continue saving for their retirement years, safely and most efficiently. A superannuation fund can offer a whole variety of benefits, including tax savings which can be easily managed and conducted by the means of superannuation fund contributions. Employed people have the additional benefit of the contributions to the fund, made from employers themselves which can raise the employees’ funds.

However, the future and the glimpse of financial security and control over it is not exclusive to people that are in a work relationship. The number of self employed people is great and many of them are willing to start securing their financial future and the retirement days. Regardless of the current employment situation, it is equally important for everyone to consider the issue hanging over our heads, since no one is able to go on working after a certain age hits and the productive energy is drained.

Self Employed Superannuation Facts

Below you have the most common dilemmas and question that arise when one is considering to start securing their financial future:

  • The uncertainty of whether one can get a super-fund set up if self employed should once and for all be resolved. The answer to this is – Yes. The additional question that naturally arises is whether there are certain specifications that have to be noted when the person lacks an employer. – One thing that needs to be taken into account in this case is the obligation of the such person to make compulsory contributions according to the Superannuation Guarantee, just as an employed person would do. Therefore, the contributions you will rely on need to be well chosen.
  • What are the perks of getting self employed superannuation? – It is logical to wonder whether one should opt for a super-fund if self employed. The answer to this question is positive, mainly due to the fact that any contributions can benefit from tax savings and that can add up to the retirement savings automatically.
  • Choosing just the right fund is not an easy task with all of those options made available nowadays from the banks, insurance companies and many other financial institutions. The most important steps you need to take when setting up your self employed superannuation are to take your time and get thoroughly informed about the administrative fees, the reliability of the financial institution you have chosen, and the insurance cover opportunities available to you.

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