Superannuation is the primary means by which Australians save for retirement. While enjoying any benefits of good investment may seem to be in the distant future, your future self will undoubtedly be thankful for any improvements you may make to your investment strategy. Here are answers to a few of the most commonly asked superannuation questions.
Are you eligible for superannuation?
If you are over 18 years old and earning more than $450 a month then you are eligible for superannuation. It does not matter if you are a full time, part time, casual or even temporary resident in Australia. Australian employers are required to pay 9.5% in superannuation on top of your gross salary and wages.
How can I access my superannuation?
You can access your superannuation when you retire or leave the country permanently. You may be able to access your superannuation earlier:
- on compassionate grounds;
- if you are in severe financial hardship;
- if you have a terminal medical condition; or
- if you are temporarily or permanently incapacitated.
Please follow this link for more information.
Picking a superannuation account
Every employer in Australia is required to have a default superannuation account. As an employee, you can opt for that superannuation to be put into an account of your choosing or the ‘default’ account chosen by your employer.
While opting for your superannuation to be put in the default account may seem like less of a hassle, it’s important to consider the best fund for you. Small differences in fees or investment performance may result in significant material differences in your eventual wealth. The fees paid on your total superannuation balance may double between accounts and differences in potential returns may differ by 2%. While that may sound minimal, each 1% lost from annual superannuation return, whether that is from higher fees or worse returns, reduces your balance by about 20% over 30 years.
Follow the links below for more information on what superannuation accounts are best suited to your needs: