Super hot cash rate
In an effort to get more people to put their cash into superannuation, AMP is offering their Flexible Lifetime super fund customers a new cash rate of 7.2 per cent per annum.
AMP director personal wealth management Andrew Hobern said superannuation is one of the most tax effective ways to save for retirement and that the new incentive rivalled the returns offered by bank deposits.
According to Hobern, people close to retirement age who opt into the deal will benefit from tax effective returns within their super.
“Tax savings translate to extra money to help people build for a better retirement,” he said.
“Significant savings can be made when investing cash in super due to a marginal tax rate of 15 per cent and if a person invests their spare cash now they’ll get a tax-free return at age 60.”
The deal also provides people turning age 60 access to their savings tax-free by converting their super into a special pension account.
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