What is super?
Superannuation is a percentage of your salary paid by your employer. It’s invested on your behalf and can be accessed when you retire. That way, you have money available to live off in retirement.
Keep in mind that super may be one of the largest investments you’ll make, so we’re here to help you all the way.
Contributions to your super
Generally your employer must pay 9.5% of your salary into a super fund (usually the fund you choose). This is known as the ‘Super Guarantee’ and it will slowly increase to 12% over the coming years.
You can also contribute to super yourself (voluntary contributions) or have your spouse pay contributions on your behalf. If you contribute to your own super, not only will you have more money when you retire, but you may also be eligible for Government co-contributions and tax concessions depending on your circumstances.
Growing your super
Your super is invested by your super fund on your behalf so that it earns interest between now and when you retire. Many super funds, including Sunsuper, give you options as to how you’d like your money invested. We have advisers who can help you decide on the best strategy for your circumstances.
One quick way you can grow your super now, is to find your lost super and combine it with your Sunsuper account.
Deductions from your super
To cover the costs of looking after your super, some fees come out of your account. The Government also takes out some tax and if you have insurance as part of your super, those premiums come out of your balance too.
Accessing your super
Once you’ve reached a particular age, you can then access your super. You can choose to withdraw a lump sum or to be paid regular payments each month (or do a bit of both).
Currently, this age is:
- Your preservation age 55-60 (depending the year you were born) if you are retired.
- 60 years old if you stop working with your employer after reaching this age.
- 65 regardless of your employment.
If you have reached your preservation age and are still working, you may be able to access some of your super with a Transition to retirement income account.
There are limited circumstances when you may be able to access your super early. These include suffering total and permanent disability, on compassionate grounds or if you are only a temporary resident and you leave the country. Find out more about accessing your super early.
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