Superannuation

What is superannuation? It's money saved for your retirement over your working life.

How super works

Most people who work in Australia get super contributions from their employer. Your employer pays into your super account, and your fund invests it over time.

Here are 5 quick facts about super:

1. If you’re 18 or older, your employer must usually pay you super. If you're under 18, they must pay super if you work more than 30 hours a week.
2. Super is paid at 12% of your qualifying earnings. Qualifying earnings are what you earn for your usual hours of work, plus any commissions, overtime and irregular payments. Some employers pay more than 12%.
3. You can usually access your super at age 60 if you change employers or retire, or at age 65 whether you’re working or not.
4. Money invested in super is often taxed at a lower rate than money outside super. That can help your balance grow faster.
5. Your super balance can include:

• • money your employer puts in
  • money you add yourself
  • investment earnings over time.

What is a super fund?

A super fund invests your money to help it grow over time.

You can usually choose your own fund. If you don’t, your employer will choose one for you. 

You can also choose how the money is invested. If you don't choose, the super fund will decide for you. 

If you change jobs, you can keep your existing super account or open a new one.

Different super funds have different fees, investment options, performance and insurance. Choosing a fund that suits you can help save on fees and build your balance for retirement.

Find out more about choosing a super fund.

You can compare super funds using the ATO YourSuper comparison tool.

If you have more than one super account

If you’ve worked in different jobs, you may have more than one super account.

Combining your super into one account can make it easier to manage and may help you save on fees and insurance. Before you combine accounts, check that you won't lose any insurance you want to keep.

You can check how many super accounts you have and combine them for free through the ATO at myGov. You could even find super you've lost track of. 

Find out more about how to find lost super and combine super accounts.

Choose what to invest your super in

Most super funds offer a range of investment options.

Your fund will choose how your money's invested if you don't make a choice. You can change that at any time.

Each option has a different level of risk and potential return:

• Growth options aim for higher returns by investing more in shares. They can have higher risk of losses in some years.
• Balanced options invest across different assets. They aim for moderate returns and moderate risk.
• Conservative options focus on protecting your balance. They usually have lower risk and lower returns.

Consider insurance through super

Most super funds offer life, total and permanent disability (TPD) and income protection insurance.

The insurance can pay money to you if you can't work, or to your beneficiaries if you die.

You can choose whether to have insurance through super. The cost depends on things like the type of cover, how much you’re insured for, your age, and your occupation.

Your super fund deducts insurance costs from your super balance.

Find out more about insurance in super.

Your super to-do list

The super choices you make now can affect your future. To stay on track:

• Know where your super is and how many accounts you have. You can check through the ATO at myGov.
• Check your super regularly by logging in to your account or using your fund's app. This helps to see if your employer pays super. You can also check your payslip and super statement. 
• Review your fees and investment performance to see how your super is going. The ATO's YourSuper comparison tool can help.
• Check your insurance to see if it still suits you.
• Keep your contact details up to date with your super fund.
• Tell your super fund who should get your super if you die.