1
What is superannuation?
It's your money and for most people, super is one of the central pieces in preparing for their retirement. Getting to grips with it early will give you greater control and the confidence to make the best financial choices for you.
Your money goes in
Your employer pays 9.5% of your salary into your superannuationThe general tax rate on Super Guarantee contributions into your Super accountYour concessional contributions
cap each year
Your money is invested.
Know your choices.
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.
Your money comes out.
Know when you can access your super.
Generally you can access your super at age 65, but in some cases you can access it earlier once you're no longer working and have reached your preservation age.
Super can be accessed before these ages but only in certain circumstances.
Questions to ask yourself: The five things you should know about your super
1.What is your super balance?
2.How many super accounts do you have?
3.How is your super invested?
4.How much are you paying in fees?
5.How much insurance do you have in super?
2
Check your Superannuation
Lost Super
You could have lost super if you didn't tell your super fund about the changes. Don't worry. We can help you track it down and combine it all into one account so you'll never lose track of it again. Easy!Retirement Income Calculator
Gives you a clear summary of your super and helps you find ways to make it work harder for you. Calculate now
MoneySmart Super Calculator (ASIC)
This calculator, provided by the Australian Securities & Investments Commission, helps you work out:- How much super you'll have when you retire
- How fees affect your final payout
3
An increasing Superannuation Guarantee rate
The Superannuation Guarantee (SG) increased from 9.25% to 9.5% on 1 July 2014. The government recently confirmed that SG will remain 9.5% for the next seven years. This means that the next SG increase will be in 2021/2022 to 10% and it will continue to increase by 0.5% from the following financial year until it reaches 12% in 2025/2026.| Financial year | SG rate |
|---|---|
| 2014-21 | 9.5% |
| 2021/22 | 10% |
| 2022/23 | 10.5% |
| 2023/24 | 11% |
| 2024/25 | 11.5% |
| 2025/26 | 12% |
Objective – your future
You don’t have to wait for SG to increase to increase your contributions to super.According to ASFA even just a few dollars extra a week could boost your retirement savings by thousands. This is especially true for younger people, who could end up with up to seven dollars more in retirement for every dollar they put into super before the age of 30.
Three small savings that can make a big difference in retirement *
- One less pack of gum ($2.50) a week = $12,000 extra savings in retirement.
- One less glass of wine ($10) a week at the pub = $48,000 extra savings at retirement.
- One less cup of coffee ($3.80) a day into your super = over $125,000 in extra savings at retirement.
Source: Small changes can make a big difference to your retirement: ASFA, 5 September 2014
Remember that limits apply to the amount you can contribute to super. For more information on these limits, speak to our Super Specialists on 132 135.
4
What are the main asset classes?
The majority of Australians have a large percentage of their super invested in shares, either knowingly or not. Generally, your super fund will allocate a percentage of your money to be invested across the four main asset classes. It's important to look closely at exactly how the fund allocates your investments.
Cash 
Bonds 
Property 
Shares 
Cash
Cash investments can help to manage risk in times of volatile markets through a range of cash strategies, including various types of money market and shorter dated fixed interest investments.
Fixed interest
Fixed interest investments can include a range of Australian or international fixed income securities, such as government and corporate bonds. Generally less volatile than shares, fixed interest may suit more conservative investors or those with shorter investment timeframes.
Property
Listed property securities involve buying interests in listed property trusts that are bought and sold on the stock exchange. It can allow you to invest in the property market without tying up a large proportion of your money directly in real estate. Returns from property may include income from rent and may include a capital growth component through an increase in the value of the property. Like shares, property securities can rise and/or fall in value.
Shares
Shares represent part ownership of a company. Listed shares can be bought and sold on a stock exchange. Investing in shares can provide an opportunity to benefit from the performance of businesses across a wide range of industries such as banking, health care and information technology.
5
Know your entitlements
If your annual salary is less than $49,488 and you make after-tax contributions to your super, the government will co-contribute $0.50 per dollar up to a maximum $500 if you are eligible. Refer to ato.gov.au/individuals/super for information about your eligibility for Government co-contributions.Government co-contributions:
| Annual salary | $100 After tax contribution | $250 After tax contribution | $500 After tax contribution | $1000 After tax contribution |
|---|---|---|---|---|
| $25,000 | $50 | $125 | $250 | $500 |
| $35,000 | $50 | $125 | $250 | $483 |
| $45,000 | $50 | $125 | $150 | $150 |
| $49,488+ | 0 | 0 | 0 | 0 |
*'Total income' is the sum of your assessable income, reportable fringe benefits and reportable employer superannuation contributions (generally salary sacrifice contributions or amounts that the employee could have otherwise chosen to receive as salary and wages).
Are you eligible? You may be eligible for government co-contributions if:
- You make an eligible personal super contribution by 30 June in the financial year into a complying super fund or retirement savings account
- Your total income is less than the higher income threshold for that year. This threshold is $49,488 for 2014/15
- You are less than 71 years old at the end of the year of income and do not hold an eligible temporary resident visa at any time during the year
- 10% or more of your total income is from eligible employment, running a business or a combination of both
- You lodge your income tax return for the relevant income year.
How can I grow my super?
The 9.5% Super Guarantee may not be enough to prepare you for a comfortable life after work. Fortunately there are tips and strategies to help you make sure you get the best out of your super.Retirement Income Calculator
Gives you a clear summary of your super and helps you find ways to make it work harder for you. Calculate now
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