How are super savings accumulated?
Your super is made up of employer contributions, personal contributions, super co-contributions, and earnings from the fund itself, less fees and charges.
Most of us start super when we start working, because our employer must pay contributions, called the Superannuation Guarantee (SG). The SG requires your employer to pay a minimum percentage of your ‘ordinary time earnings’. This percentage is currently set at 9.5%, however will increase progressively over the next few years to 12%. You can also choose to top up your super out of your own pocket.
Your super grows over the long term because your employer and/or you make regular contributions, your super fund invests your money, and your fund gets tax concessions that boost your earnings.Your super fund may also offer life insurance cover and disability insurance.
Your super is held for you until you:
- Reach preservation age and retire, if under age 60
- Finish working after age 60
- Reach age 65
- Become permanently disabled or die
- Meet eligibility requirements for severe financial hardship or specified compassionate grounds
- Commerce a transition to retirement pension
Your preservation age depends on when you were born:
|Date of birth||Preservation age|
|Before 1 July 1960||55|
|1 July 1960 - 30 June 1961||56|
|1 July 1961 - 30 June 1962||57|
|1 July 1962 - 30 June 1963||58|
|1 July 1963 - 30 June 1964||59|
|After 30 June 1964||60|
Types of super funds available
Superannuation benefit design
How much you receive from your super will depend on the type of fund you’re in and how they calculate your payment. Generally, funds fall into two main categories.
Some funds, called ‘hybrids’, are a combination of the two.
Other info you might be interested in
We're here to help
If you want to learn more or need help with making a decision about your super, you can get simple advice over the phone or face to face. It’s included as a part of your membership so there’s no extra cost.