Is superannuation a good investment?

NO. Well not really no… superannuation isn’t actually an investment so the question doesn’t make sense. It is a common misconception that superannuation is an investment. It is though a place/entity where you CAN hold investments within. Superannuation is just another environment to hold investments just as you can hold investments in your own name, a company’s name or a trusts name.

When it comes to holding investments inside superannuation it does come with certain rules and regulations around it. These are but not limited to, restrictions on when you can access your money personally, rules around what you can invest in and how much you can contribute to the superannuation environment.

It is not all restrictions though, given these restrictions – it also then comes with tax concessions that are available to you when you are working and also in retirement. The general idea is that superannuation is there for the sole purpose of funding your retirement when you are 60 onwards - the government gives you these restrictions and also these benefits to help maximize what is actually left for your eventual retirement.

With the funds inside your superannuation, you do have control to a certain extent as to what you invest in – it’s important you get the right personal advice as to what is best for your individual situation.