Assessment 2Assessment Type: Assignment – 2000 words essay response and one analytical response - individual assessment.Purpose: This assessment will allow students to have experience in analysing...

Superannuation contributions in defined benefit plan or the investment choice plan
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Superannuation contributions in defined benefit plan or the investment choice plan
Introduction
Savings plays a crucial role in one’s life, people try to save financials for future as well as for different events and for the retirement as well. For this different countries have come up with different plans which has helped the people across the country to do several savings and investment plans. The Australian pension plan that is governed by the government is known as superannuation. It is one of the most important fund which has been made compulsory by the Australian government. The main aim of the superannuation plan is to provide financial benefits to the person at the retirement. The retired person is able to get necessary financial resources with the help of the superannuation financial plan.
In this report, we would be analysing about the superannuation contribution and the use of superannuation in defined benefit plan or the investment choice plans.
Superannuation fund is one of the most important fund of the Australian market which have experienced sustained growth over the decades particularly in the net cash flows. It has included compulsory employer contribution which is around 9.5% of the current salaries and gives positive investment return which has been growing at a rapid rate. Apart from the employer the employees are also required to make certain contribution to the fund, so as to ensure that the fund has enough returns.
The Australian superannuation industry provides an extent which helps in examining the extent of the scale economies which has been realised by the multi asset class of the investment funds. The Australian superannuation industry is the one industry which focus on providing an ideal setting to examine the economies of scale which is realised by multi-asset class investment funds. In the initial time, the funds management majorly focused on the fixed income and the equity funds.
With the large superannuation contributions done across the country, there are different companies which are taking care of the superannuation funds which includes the companies like Unisuper Limited. Unisuper limited is considered to be one of the largest companies of Australia which manages the superannuation funds and provides related services to the contributors. With the huge contribution from across the country, superannuation is one of the biggest mode of investment where an individual can analyze and decide on the form of investment which includes defined benefit plan or the investment choice plan.
Factors effecting the superannuation contributions:
There are different aspects which effects the contribution of the superannuation plans. These includes the regulations by the government, the age of the employees and the income group of the employees. With the old age, the contributions to the superannuation is usually high. With the high income, the contribution towards the superannuation is also high.
Risk:
The contribution and the inclusion of the superannuation is usually dependent on the investment plans and the risks that the individuals are able to take.
· Secured funds are the funds in which the...