\n <\/a><\/a>\n <\/p>\n<\/div>\n\n\n\n Superannuation is commonly called \u2018super\u2019. It\u2019s there to help support you financially when you stop work and retire, or when you\u2019re transitioning into retirement. Think of it like a savings account that you can\u2019t access, yet. <\/p>\n\n\n\n Knowing what to do with your super can feel difficult, but as an important part of your income entitlements and retirement savings, it could make all the difference to where your future could lead you. So if this topic is new to you or you\u2019d like to better understand where you stand, we\u2019ve compiled the essentials on superannuation and show you where to go for help.<\/p>\n\n\n\n When you earn money at work, your employer will pay money into the super fund of your choice. In Australia, this is a compulsory requirement for your employer. Alternatively, if you are self-employed or work as a contractor, you have the option to contribute voluntarily to a super fund yourself. <\/p>\n\n\n\n Over time, your super fund will earn interest and returns on investments and can be a potentially significant sum by the end of your working life. <\/p>\n\n\n\n When you retire and reach the age of 55-60, depending on when you were born, you can access your superannuation in the form of a regular payment or a lump sum.<\/p>\n\n\n\n Superannuation is a contributory system. This means that the amount of money you get out of it in retirement mostly depends on the amount of money that has been put into it over the course of your working life. So, people who have earned a lot of money during their careers will have a lot of money in retirement. <\/p>\n\n\n\n Unfortunately, the other side of this is also true \u2013 people who didn’t earn much may not have much super in retirement. This means that income inequality in employment continues into people\u2019s retirement.<\/p>\n\n\n\n This feature of the system disproportionately affects women. Women tend to earn less at work due to having lower wages on average than men. They also tend to take more time out of work due to parental leave, caregiving and traditional gender roles that see women take on more unpaid work around the home.<\/p>\n\n\n\n For people who don\u2019t have enough super or other income to get by in retirement, the Australian government pays an old-age pension. This is means-tested, which means the more income, super, or other assets you have, the less you receive in the pension. <\/p>\n\n\n\n When you\u2019re employed and receive pay, your employer makes payments to your super. All payments into your super are called \u2018contributions\u2019.<\/p>\n\n\n\n Employers must offer eligible employees a choice of super fund and a standard super choice form. When you move to a new job, you can move your existing fund across if you want to. So even if an employer recommends a specific fund to you, you can choose a fund that you prefer.<\/p>\n\n\n\n The government sets the minimum percentage of your wages that your employer must pay to your super fund, currently that rate is 10.5% and is set to increase<\/a> in the future. Some employers will pay above the minimum rate. <\/p>\n\n\n\n Super contributions form part of the compensation you receive for working. However, it is supposed to be in addition to the wages you earn, rather than being subtracted from them. <\/p>\n\n\n\n If you\u2019re self-employed or work as a contractor, then you probably won’t receive compulsory super contributions. <\/p>\n\n\n\n The short answer is yes. Over the course of your working life, it\u2019s important to keep track of what\u2019s happening with your super, that you know where your money is, and that your employer is paying your super correctly. <\/p>\n\n\n\n To learn what\u2019s involved, start with the resources from the Australian Taxation Office (ATO) on super<\/a>, employee rights<\/a>, and how to keep track of your super<\/a>.<\/p>\n\n\n\n You can check your existing super by logging into the MyGov website<\/a>. Or you can go straight to your fund\u2019s login. <\/p>\n\n\n\n There are different types of funds and different kinds of companies or organisations that run them. You could even manage your super yourself. <\/p>\n\n\n\n Most super accounts are accumulation-style products. Many of the defined benefit funds are now closed to new members. <\/p>\n\n\n\n The value of your super comes from contributions and the return on interest, and investments generated by that money.<\/p>\n\n\n\n The value of your super is determined by a formula rather than investments. Professional financial advice<\/a> is recommended before making a commitment. <\/p>\n\n\n\n Super investing is typically managed by someone else or is self-managed. There are alternative, less common options that could be available to you, which you can read about at Moneysmart<\/a>. <\/p>\n\n\n\n![\"Woman](\"https:\/\/studiokettle.com.au\/wip\/living-costs\/wp-content\/uploads\/Investing_v002.png\")
<\/figure>\n\n\n\nWhat is super?<\/h2>\n\n\n\n
Financial risks<\/h3>\n\n\n\n
Women at risk<\/h3>\n\n\n\n
Will you have enough? <\/h3>\n\n\n\n
How the industry works<\/h2>\n\n\n\n
You have a choice<\/h3>\n\n\n\n
How much do you get? <\/h3>\n\n\n\n
Who doesn\u2019t get super?<\/h3>\n\n\n\n
Should you look after your super?<\/h2>\n\n\n\n
Types of super<\/h2>\n\n\n\n
Types of funds <\/h3>\n\n\n\n
Accumulation <\/h4>\n\n\n\n
Defined benefit <\/h4>\n\n\n\n
Who manages super?<\/h3>\n\n\n\n
![\"A](\"https:\/\/studiokettle.com.au\/wip\/living-costs\/wp-content\/uploads\/plans_goals.jpg\")
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