As the name implies, an SMSF (also known as DIY super) is a private super fund that you manage yourself. So it’s no surprise that control is the number one reason people give when asked why they chose to fly solo. SMSFs give their members control over how their retirement savings are invested. Other reasons for ... 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 is the sole purpose test, and how does it work?
As superannuation goes under the microscope once again in the government’s Retirement Income Review, it’s worth pausing to reflect on the reason super exists. At the heart of all the super rules is the sole purpose test. All super funds must satisfy the sole purpose test to be eligible to receive the tax concessions ... Read more
How to grow your super: Know your risk profile
Want to add thousands to the account balance of your super when you retire? Then make sure the investment option you have selected for your super account matches your risk profile, as that single decision can make thousands of dollars difference to your eventual retirement savings. Don’t know what a risk profile is? ... Read more
What are unit pricing and crediting rates and why do they matter?
Understanding why your super balance goes up and down – and comparing the performance of your super fund with other funds – is about more than just checking fees, super contributions and insurance premiums. It’s also knowing how – and when – your super fund calculates and applies investment earnings to the balance of ... Read more
Who to turn to if you have a problem with your super or financial adviser
Knowing who to complain to when you need help resolving a problem with your super fund or financial adviser can be confusing. Whether it’s a concern about poor advice, problems with unpaid SG contributions, or questions about how your private data has been handled, there are a number of organisations that can help. To ... Read more
How accurate is your ‘retirement estimate’? 7 assumptions you need to understand
When opening their annual member statement, many super fund members see a comforting projection of how much their account balance is likely to be when they retire, and how much income it will provide in retirement. According to super industry researcher SuperRatings, 42% of super funds now provide retirement ... Read more
10 key super fund fees: What are they and why am I paying them?
Nobody likes paying fees, particularly when you can’t see what you’re paying for. So when it comes to your super fund, it’s worth learning a bit more about the fees you’re paying and why. Like most things in the super industry, the fees you pay depend on the type of super fund you are a member of, and how you decide to ... Read more
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
Super funds with the lowest fees for life and TPD insurance
Despite concerns that life insurance premiums inside superannuation are set to rise as a result of new legislation making insurance opt-in for members under 25, inactive accounts and balances below $6,000, there is little sign of this happening. But it is still early days. The ‘Protecting your super’ legislation only ... Read more
Super funds with the lowest fees for income protection insurance
Paying too much for Income Protection insurance inside your super fund can cost you dearly, eating into your retirement savings without necessarily improving your cover. Income protection (IP) insurance (sometimes called salary continuance insurance) is available through about a third of super funds as default cover. ... 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 to October 2019 ImportantSuperannuation is primarily a long-term ... Read more
Super fund performance: Monthly returns to October 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
Super news for November 2019
This month we look at the US investment giant setting its sights on Australian super, the launch of AFCA’s comparative reporting tool, ASIC flagging potential downsides of SMSFs, the risk of cyberattack for Australian financial institutions and the SMSF couples that are tracking well against lifestyle goals. Vanguard ... Read more
The agony of waiting: Group life insurers are pushing claimants to the brink
Many Australians are still stuck in insurance processing hell. Need to know Around 12 million Australians hold total and permanent disability (TPD) insurance through their super Lawyers working in the field say that super funds and insurers routinely delay and drag out claims Long processing times are known to cause ... Read more
3 steps to making a complaint about your super fund
Sometimes things go wrong. Whether it’s your super fund or its insurer, sometimes the decision about your super account or the information provided is just not the way it should be. But what can you do about it? And how do you go about making a complaint? SuperGuide has put together a simple explainer to help walk you ... Read more