Superannuation is a long-term investment. Those starting in the workforce today at 18 will have 47 years of superannuation contributions and investment returns ahead of them if they retire at 65. We often hear about the super returns for the latest month, or the top performing funds for the last year, but when looking ... Read more
How super works
A Super Guide
Compulsory superannuation has been around since 1992, but there is still a lot of confusion about its purpose and how it works.
Our Super Guide for beginners tries to answer everything you wanted to know about super but were too afraid to ask.
We also discuss super’s role in Australia’s retirement income system. We cover compulsory and voluntary contributions and how they are taxed, and how your savings are invested and taxed inside super. And finally, when and how you can withdraw your retirement savings and what happens to any super that’s left when you die.
Click on the following links to learn more about some of the fundamentals about superannuation:
- Latest super and retirement changes
- Super for beginners
- Super rates and thresholds
- Superannuation strategies
- Superannuation Guarantee rules
- Comparing super funds
- How-to Super Guides
- Superannuation Q&As
- Super Quizzes
Learn more about the aspects about how super works in the following SuperGuide articles:
Set out below are all SuperGuide articles that relate to How super works.
Asset sector performance: Returns over 1 to 15 calendar years (to December 2019)
In this article you can discover the investment performance for 12 asset classes over various timeframes. For all asset classes there is data for 1, 3, 5, 7 and 10 calendar years, and for most asset classes there is also data over 15 calendar years. Note: A calendar year covers 1 January to 31 December, whereas a ... Read more
Super fund performance over 27 calendar years (to December 2019)
In this article you can find super fund performance for 1, 3, 5, 7, 10 and 15 years, up to the latest calendar year and across five different investment options. We’re grateful to Chant West for providing the statistics in this article.See also Super fund performance over 27 financial years (to June 2019) Super funds ... Read more
Monthly super fund performance Reckoner: Monthly returns for 5 investment categories
In the reckoner below you can view the median monthly investment returns for 5 superannuation investment options. We’re grateful to Chant West for providing the statistics that power the reckoner. See also: Super fund performance: Monthly returns ImportantSuperannuation is primarily a long-term investment. While the ... Read more
Best performing super funds over the last calendar year (to December 2019)
Super funds finished the 2019 calendar year with bang, with the median growth fund delivering a return of 14.7%. This was almost twice the median return of 7.9% over the past decade and a massive turnaround after the 4.6% fall in the December 2018 quarter. Last year was unusual in that all asset classes apart from cash ... Read more
Annual super fund performance Reckoner: Annual returns for 5 investment categories
In the reckoners below you can view the median super fund returns for 1, 3, 5, 7, 10 and 15 years across five different investment options. There are two reckoners - containing returns for the last 5 calendar years and 4 financial years respectively. We’re grateful to Chant West for providing the statistics in this ... Read more
Asset Sector Performance Reckoner
SuperGuide’s Asset Sector Performance reckoner allows you to compare the investment performance of various asset classes over the short, medium and long term. The reckoner covers 12 asset classes over 1, 3, 5, 7 and 10 years and, where available, also over 15 years. The maximum performance timeframe available for each ... Read more
Super news for January 2020
This month we look at what support is available to Australians affected by the bushfires, changes to legislation allow high earners to opt out of some SG payments, warnings from the ATO and ASIC on early release of super schemes, the price of medications for pensioners has come down, FASEA's ethics rules are now in ... Read more
How does the First Home Super Saver (FHSS) Scheme work?
Saving a deposit to buy your first home is a tough task, and purchasing an affordable first home can be an even greater challenge. The First Home Super Saver (FHSS) Scheme developed by the Australian Government is one solution, but it’s not for everyone. To help you get your head around whether or not the FHSS Scheme ... Read more
Which are the largest super funds?
Superannuation is now very much super-sized. At September 2019 there was $2.9 trillion invested in super, up 7.1% in just 12 months. That’s significantly more than the $1.9 trillion combined value of all the stocks on the ASX. And with 9.5% of everyone’s wages being added each year, Australia’s superannuation system is ... Read more
How long you can expect to live, and what it means for your super
Ever wondered how long you’ll live? Or wondered what your life expectancy could mean for your super savings? Well the answers may surprise you, as it could be a lot longer than you think. Life expectancy is a complex topic, so SuperGuide has put together a straightforward guide to help explain the key concepts – ... Read more
2019 Year in Review: When risk paid dividends
Shares at record highs and interest rates at record lows. One of the defining aspects of 2019 was the flight to higher risk assets in pursuit of higher returns. And it certainly paid off. Despite the US-China trade war, the Brexit impasse and a slowing global economy, investors with a diversified portfolio finished ... Read more
How to review your super fund
Is your super fund a star performer or a lemon? It’s a question more Australians are asking after the Productivity Commission and the Hayne Royal Commission highlighted widespread overcharging and underperformance across the superannuation system. It often starts with niggling doubts. Fees that are above the industry ... Read more
Beginner’s guide to making super contributions
Building a sizeable retirement nest egg can take some effort, but a recent study by Roy Morgan found only 18% of employees with super currently have more than the compulsory 9.5% of their salary or wages going into their super fund account. This is a significant drop from 2009, when nearly a quarter (23%) of workers ... Read more
Do you know what your super fund is invested in?
With trillions of dollars tied up in Australia’s super funds, you’d think it would be pretty easy to find out where all that money is invested. But that’s not the case, with the investment assets of many super funds being far from transparent – both publicly and for fund members. It’s a situation the government has ... Read more