How does super work? Your questions answered

Not sure about super and how it all works? We can help. We’ve compiled a Q&A featuring some of the most common questions from our members.

Have a look, and start building a brighter future.

The Basics

Why do I need super?

Super is designed to provide you with an income in retirement. In other words, you’re saving for the future. The end goal being enough money to support yourself once you’re no longer working.

Super isn’t the only way to support yourself in retirement. The government provides an age pension for people who qualify. This is currently $24,551 per annum for a single person, which works out to be about $472 per week. For most people that’s only enough to pay for the basics.

The good news is your super and the age pension can work together. So even a modest super balance can help top up your age pension to provide you with a more comfortable lifestyle.

Where does the money in my super come from?

Good question. There’s this thing called a ‘Super Guarantee‘, or SG for short. It’s a law that says employers need to pay 9.5% of a person’s salary into their super annually.

So, if you’re applying for a job, and the position description says the salary package is $70,000 p.a. + super, that means you’ll receive $6,650 in super every year (9.5% of $70,000).

There’s all kinds of additional fine-print around the super guarantee, including the number of hours you need to work every week to qualify, etc. You can find those details here.

Can I choose where that money is invested?

Yes. But if you don’t nominate an investment choice your super will be invested in our default MySuper option. This is a low-cost investment option that adjusts for your age.

If you’re 50 and under we will invest your super into our Aggressive MySuper option, which is geared towards higher risk and returns, then gradually move your super to our Balanced MySuper option, which has a lower risk/return ratio.

But there are all kinds of investment options you can choose from. At a basic level we offer nine diversified options, from Conservative to Aggressive. Each of these options offers a different mix of investment risk and potential returns and is managed by our asset managers. For example, our Balanced options has returned just shy of 8% per annum over the last decade.

You can also invest in one of our sector specific options, like Overseas Shares, Australian Shares or Property. Or you can mix and match the above to find a combination that works for you.

Changing your investment options is easy, just login to your account and update your preferences.

/Public Release. The material in this public release comes from the originating organization and may be of a point-in-time nature, edited for clarity, style and length. View in full here.