Superannuation

Superannuation is a way to save for your retirement. The money comes from contributions made into your super fund by your employer and, ideally, topped up by your own money. Sometimes the government will add to it through co-contributions and the low income super contribution.

 

Over the course of your working life, these contributions from your employer add up, or 'accumulate'. Your super money is also invested by your super fund so it grows over time. When you retire, you will have money to live off - a nest egg. Super is a lifetime investment that has many benefits.

 

Things you should know:

 

  • Your employer is obligated to pay 9.5% of your annual salary in to the superannuation fund of your choice.

  • The general tax rate on concessional contributions into your Super account is 15%.

  • General concessional contributions cap each year. A temporary higher concessional contribution cap of $35k is available those aged 49 years or over on 30 June 2014 and 30 June 2015.

  • You can choose how your money is invested.

  • Most funds have a range of investment options to choose from.

  • If you don't make a choice, your money is likely to be invested in a ‘default investment option' which may not suit your needs.