Superannuation is a way of putting money aside now and saving for the future. And for most of us who are employed it's compulsory for employers to put money away on our behalf.
It may seem a long way away now, but when you retire your 'super' payout will be an important way of supplementing your age pension.
There are lots of different superannuation funds out there so keeping track of your money as you move from job to job is extremely important.
If you have moved from job to job and left your super behind, you can visit the Australian Taxation Office (ATO) to find your lost superannuation money (new window).
How does it work?
Amounts of money are collected from individual people and pooled into a large account, which is then invested into portfolios like shares, property, government bonds and cash deposits.
Who is eligible?
Nearly everyone with a job is required to join a government-approved superannuation fund.
Whether you are full-time, part-time or casual, if you're between 18 and 70 years of age and earning more than $450 in a calendar month your employer should be contributing on your behalf.
If you're paid under an award and earn less than $450 per month your employer may still be required to pay, although some people are exempt. Check out the Australian Tax Office's (ATO's) Superannuation Guarantee - Information for Employees page (new window) for more information.
How much?
If you're eligible your employer should be paying at least nine percent of your gross wage towards your super, which may include overtime. Sometimes employers do not pay the required amount.
You can contact the Australian Taxation Office on 131 020 to check that you are receiving the correct amount.
Can I choose my own fund?
There are fund rules that control what funds you can join. Depending on what industry you are in or what employment arrangement you have you may be able to nominate your own fund.
If you find you are able to choose your own fund, there are some important things to consider (new window).
Every fund must tell you about its main features, including:
- What benefits you get, including any death and disability benefits
- Who can make contributions and how to make them
- What fees you will pay
- Whether you can choose your own investment strategy
- The objectives of the investment strategy, its risks and returns, and
- What the fund earned for members in the last five years
How do I check my employer is paying?
There are ways to check that your employer is doing the right thing and contributing the correct amount towards your retirement. The ATO has a guide for checking to see if the right contributions are being made by your employer (new window).
Useful superannuation links
Australian Taxation Office (ATO) - Your Super Essentials
This should be your first step when it comes to learning about superannuation and is also the best place to check to see what information is correct.
Financial Information Delivered Online (FIDO)
This website is full of financial tips and information for investors and consumers of financial products, including superannuation.
The Source - The Big Decisions
An easy to understand Federal Government site that covers money matters, including an overview section on superannuation.
The Association of Superannuation Funds of Australia Ltd
This is the peak regulatory body for superannuation issues in Australia and includes useful things for consumers including a dictionary for all that super jargon!
Superannuation Complaints Tribunal
This is an independent tribunal set up by the Federal Government to investigate complaints about superannuation funds and savings accounts from consumers.
