Describe the nature and roles of superannuation funds, including the primary sources of superannuation funds and the
Question:
Describe the nature and roles of superannuation funds, including the primary sources of superannuation funds and the different types of fund.
Superannuation funds facilitate savings by individuals for their future retirement.
Types of superannuation funds include corporate funds, industry funds, public sector funds, retail funds, small regulated funds and self-managed funds. Sources of superannuation savings include employer contributions, employee contributions, compulsory superannuation contributions, personal contributions and eligible rollover funds.
Many countries are experiencing a demographic shift to an ageing population.
Some countries have introduced compulsory superannuation schemes to ensure people fund at least part of their own retirement. In Australia, employers must contribute the equivalent of 9.50 per cent of an employee's wage into a superannuation account in the name of the employee. The superannuation funds receive concessional taxation treatment.
A defined benefit scheme pays a superannuation amount on retirement based on a defined formula, while a defined contributionfund pays the accumulated balance. APRA is the prudential supervisor of most superannuation funds.
Question:
Superannuation savings for retirement is a growth area and represents a significant proportion of the assets accumulated in the financial system.
(a) Why has there been such growth in superannuation savings?
(b) Self-managed superannuation funds (SMSFs) are a popular choice among investors. Outline the size of the SMSF sector relative to other parts of the superannuation industry and list some reasons that may explain the popularity of SMSFs
Introduction To Health Care Management
ISBN: 9781284081015
3rd Edition
Authors: Sharon B. Buchbinder, Nancy H. Shanks