The latest super news in brief. APRA to rate super funds using traffic light colours ... 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.
What are lifecycle super funds, and how do they perform?
Click here to jump to the latest returns for lifecycle super funds. Close to 70% of Australians with super in one of the major funds are invested in their fund’s MySuper option, the default option for employees who don’t choose a super fund. If you are a member of a retail fund, this is most likely a lifecycle product ... Read more
Monthly super fund performance Reckoner: Monthly returns for 5 investment categories
In our 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 to July 2019 Important: Superannuation is a long-term investment. While ... Read more
Super fund performance: Monthly returns to July 2019
In this article you can discover the latest monthly performance for super funds over 5 investment options. We’re grateful to Chant West for providing the statistics in this article. For annual and long-term super fund performance see the following SuperGuide articles:Super fund performance over 27 financial years (to ... Read more
A short guide to platforms and wraps
If you’ve ever invested through an adviser, chances are they mentioned platforms or wraps. If you dozed off at that point, who could blame you. But if a small part of you would like to know what they were talking about, read on. After all, it’s your money that’s about to leave the station. What’s a platform? ... Read more
How ‘guaranteed’ is a rise in the superannuation guarantee?
Soon after the election Treasurer Frydenberg flagged there would be an inquiry into retirement incomes. Since then, no details have emerged.But there is gossip around Canberra there might be some action in the next couple of weeks on a review that would report before the end of 2020.This issue, with compulsory ... Read more
The pros and cons of investing your inheritance into super
Receiving an inheritance is usually a mix of emotions. Although you’re happy about the improvement to your finances, it’s often coupled with sadness about the loss of a family member or friend. It also brings lots of confusion about the best way to manage the bequest. While your first thought may be to pay off your ... Read more
Quiz: Super for beginners
Take the following 10 question quiz to test your knowledge on the fundamentals of superannuation.Don't worry if you don’t know the answer to a question. Have a go anyway and we’ll let you know the correct answer, as well as providing you with a link to a relevant article.Note: When you pick an answer the correct ... Read more
Retirement age calculator: When can you access your super or the Age Pension?
Although there is no ‘retirement age’ in Australia, there are two ages that are important to know for planning your retirement:Preservation age: This is the age when you can access your super funds provided you have also met a condition of release (such as retiring or turning 65). Age Pension age: This is ... Read more
How to select a retirement income calculator
Anyone who’s ever spent a few minutes popping numbers into their super fund’s online retirement calculator to find out if their retirement savings are on track knows it’s a confusing process.Calculators ask lots of questions and produce some great charts, but they’re only as good as the information you put into them, ... Read more
How reliable are retirement income calculators?
Nowadays you can expect just about every super fund website to provide an online retirement calculator, which can help members track how much money they are likely to have in their super account at retirement, and how long these retirement savings will last.If the calculator’s figures look good, most super fund ... Read more
How to read a super fund PDS
By the time you retire chances are that superannuation will be your biggest store of wealth outside the family home. Yet we tend to spend more time researching the best mobile phone plan or our next holiday than we do on our super.So even if you find super mind-numbingly dull and difficult to understand, it matters. ... Read more
2018/19 Year in Review
As we look back over the 2018/19 financial year, it was a year in two halves.Spooked by falling global growth and an escalating trade war between the US and China, financial markets slammed on the brakes heading into Christmas. Then, despite a lack of real progress on the economic or trade front, markets flicked a ... Read more
Asset sector performance: Returns over 1 to 15 financial years (to June 2019)
In this article you can discover the investment performance for 12 different asset classes over various timeframes. For all asset classes there is data for 1, 3 and 5 financial years, and for most asset classes there is also data over 7, 10 and 15 financial years. Note: A financial year covers 1 July to 30 June the ... Read more
Super fund performance over 27 financial years (to June 2019)
In this article you can find super fund performance for 1, 3, 5, 7, 10 and 15 years, up to the latest financial year and across five different investment options. See also Super fund performance over 26 calendar years (to December 2018) The 2018/19 financial year was a year of two halves. Concerns about the escalating ... Read more