AustralianSuper on understanding the basics of superannuation
Jan 12, 2024
Superannuation, or super, is like an automatic savings scheme, designed to help support your financial needs in retirement.
Your employer is usually required to pay an amount on top of your wages (or salary) into a super account on your behalf. Your super fund then invests that money for you to help it grow.
Can I get super?
If you’re under 18 you’ll need to be working more than 30 hours a week1.
If you’re 18 or older, in most cases your employer will need to start paying you super through something called the superannuation guarantee (SG). This includes full time, part time or casual work1. On 1 July 2023 the SG increased to 11% of your income.
Different types of funds
Most people will be with an industry fund or a retail fund. Industry super funds are known as ‘profit to member’ organisations. This means any profits go back into the fund for the benefit of members, not shareholders.
Retail super funds are usually run by banks or wealth management companies and need to return profits to their shareholders.
If you don't nominate a super fund when you start your first job, your employer will set you up as a member of their default fund.
There are different types of fees and costs you might be charged based on your investment option.
It’s important to check that you’re not paying costly fees or fees for services you don’t need. These can eat into your super savings and over time negatively affect your balance.
Find out more about super here.
1 For eligibility details, visit here.
This information may be general financial advice which doesn’t take into account your personal objectives, financial situation or needs. Before making a decision about AustralianSuper, you should think about your financial requirements and refer to the relevant Product Disclosure Statement available at australiansuper.com/pds or by calling 1300 300 273. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the TMDs at australiansuper.com/tmd.
Sponsored by AustralianSuper Pty Ltd, ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898