In Australia your employer will pay a percentage (legislated by governement) of your wage into a superannuation (super) fund. This is currently set at 9.5% but is likely to increase in the future. You can also make regular additional contributions into a super account yourself or ask your employer to deduct money from your salary. The regular contributions add up over the years while you’re working, so the earlier you start saving for retirement, the better as your savings have a lot more time to grow.
Can you Choose your Super fund?
Most people can choose their super fund and you can either enquire at the Australia Taxation Office or ask your employer if you can choose a super fund or not. There are some cases if you are covered by industrial agreements or are a member of a defined benefit fund, where the fund will be nominated for you.
How to Choose the Right Superannuation fund
There are several things to consider to select the right superannuation fund. Look for one that offers a range of investment options, insurance cover, as well as benefits. The administration and fund management fees are also important when choosing the right superannuation fund. It is also a good idea to compare fund performance over time with your existing super fund. Compare several super funds based on these factors so you can choose the right one for you. It is always a good idea to seek advice from a licensed professional to help you in making the right decision.
Saving for retirement as soon as possible is one of the best things you can do. If you are new to retirement planning, make sure to know and fully understand how super funds work and how to select the right superannuation fund. Once you have the fund that is suitable for you, let time do the work for you. This gives you some peace of mind that you’ll have a secure and bright future.
For more information on Superannuation and retirement contact one of our alliance partners for assistance.