Superannuation Assignment Example | Topics and Well Written Essays - 1000 words

retirement pension - Assignment ExampleAdam can use this option to increase his superannuation with $90,000 more than dollars so as to make the total come in of his superannuation funds to be $540,000. This option is only allowed for persons who are below fifty five historic period of age and Adam is eligible as he is fifty three years old.Employers are required to contribute 9.5% of their workers earnings to their superannuation funds. Adams is earning $35,000 and thus his employer is required to pay $3,325 towards Adam superannuation fund.The Low Income Superannuation Contribution reelect is applicable to Adam because he earns less than $37,000. This scheme is applicable to people who whose superannuation contribution is made by their employers and those that earn less thus $37,000. Adam meet these two requirements thus he is eligible for the scheme.The amount in dollars that will actually be invested in Adams superannuation fund is $3,325. This is because the Low Income Supe rannuation Contribution refund is a refund of the concessional tax levied on employers contribution. Thus considering this scheme, the total amount of employers contribution will be invested in Adams superannuation fund. benzoin should consider making personal contributions of $180,000 to his superannuation fund. Then if he is employed his employer will pay for his contributions where he will be eligible for the Low Income Superannuation refund thus the total employers contribution will be invested in his fund.The requirements in a SMSF investments strategy are considering business risks, the investment must give adequate gains to the fund members, the investments must be diversified sufficiently, the needs, employment and income needs of the members must be met by the investment and finally the fund has to be able to sustain the investment as well as pay member benefits.The considerations that have to be made while making an SMSF investment are majorly