Everything You Need To Know About Australian Superannuation
Australians have a world-renowned superannuation system. Superannuation often referred to as "super", is a form of savings plan that provides income in retirement. By contributing to a super fund while you are working, you may be able to retire with a larger nest egg than if you didn't have one. Employers must contribute a minimum amount into an employee's super fund and there are tax incentives for people to save for their retirement.
How does Australian Superannuation work?
Superannuation, or 'super', is a system of saving for retirement in Australia. All employees must contribute a percentage of their wages to a super fund, and employers must also contribute. Superannuation is administered by the government through several agencies, including the Australian Taxation Office (ATO) and ComSuper.
What are the benefits of Australian Superannuation?
Australian superannuation is a system of compulsory saving for retirement. It is a three-pillar system, made up of a government-mandated Retirement Savings Account (RSA), employer contributions, and voluntary contributions.
The benefits of Australian superannuation are:
- Employees do not have to worry about saving for retirement, as the government forces employers to contribute a percentage of the employee's salary into a superannuation fund.
- Employers receive a tax break for contributing to their employees' superannuation funds.
- Employees can access their superannuation savings
How can I access my Australian Superannuation?
If you have worked in Australia and paid into the Superannuation system, you will be able to access your Superannuation when you reach retirement age. The process of accessing Superannuation can be complicated, as there are many different schemes and accounts that may apply to you. It is important to familiarize yourself with the process well in advance of retirement, to make sure that you receive the funds that you are entitled to.
What are the different types of Australian Superannuation funds?
There are a few different types of Australian superannuation funds available. The most common are industry funds, retail funds, and public sector funds. Industry funds are offered by employers, retail funds are offered by banks and other financial institutions, and public sector funds are offered by state or federal governments.
Each type of fund has its benefits and drawbacks. Industry funds, for example, often have low fees and offer a wide range of investment options, but they're not available to everyone. Retail funds usually have higher fees but offer more personalised services. Public sector funds usually have lower fees than industry.
How often should I review my super fund?
You should review your super fund every 2-3 years to ensure the returns are tracking to helping you achieve your retirement goals.