How super works

What is super?

Super is a way for Australians to save money for retirement. Building a healthy super balance is one of the best ways to enjoy a comfortable lifestyle in later years, with the little luxuries and fun you’ve always dreamed of.

While working, your employer must pay a percentage of your salary into the super fund of your choice. This is known as the ‘superannuation guarantee’ (SG). The minimum SG is set at 12% of your ordinary time earnings (that is, your base pay and certain additional payments or allowances for ordinary hours worked). Visit the ATO website for more information.

When it comes to eligibility for SG payments, the rules are simple: your employer must pay super if you are 18 or over. Whether you’re a casual, part-time, or full-time employee doesn’t matter (some exceptions apply). If you’re under 18, employers must pay super if you work more than 30 hours per week. Generally, your fund holds your super until you retire from the workforce and have reached the ‘preservation age’ of 60 years old.

What do super funds do?

The trustee of your super fund is responsible for managing the fund in the best financial interest of members.

Super funds typically invest in various assets to help grow their members’ balances, including cash, shares, property and fixed interest. Each asset type has a different risk and return level – so it’s essential to review the various investment options available and decide what’s right for you.

How do I choose a super fund?

You generally have the right to choose your super fund. It’s a good idea to spend some time researching, as selecting the right fund can make a big difference to your balance when you retire.

It’s particularly important to look at the fund’s performance and fees and costs, as these will directly impact your savings. But you may also want to consider insurance, other services like financial advice and help, investment options, and the fund’s attitude towards responsible investment.

How can I grow my super?

The more you can do to maximise your super, the better your position can be when you retire. There are a few things you can do:

• Check your super balance.

• Consider making additional contributions

• Look into consolidating your super

• Consider your investment options

• Consider getting financial advice before you make a decision.

Wherever you are in life, your super is one of the best ways to set yourself up for a more comfortable financial future.

When can I access my super?

There are strict government regulations regarding when you can access your super. Visit our ‘Accessing your super page’ to find out more, or refer to the PDS for your account type.