Super basic

Super basic

Superannuation is an important part of employment benefits. Super is, in part, a compulsory means to save for your retirement. The Government offers tax savings to make super an attractive way to save for your retirement. Most people have a right to choose into which fund their employer should direct their Super Guarantee (SG) contributions.

The way your super account works is quite simple. Your super is an accumulation style benefit. Contributions go into an account in your name. Investment earnings (which can be positive or negative) are allocated to your super account, based on the investment performance of your investment options. Insurance premiums, fees and taxes are deducted from your account.

Think about the type of lifestyle you would like when you retire. Relying only on the SG contributions your employer makes for you may not provide enough super to support your desired lifestyle. Making extra contributions to your super is a good way to build a bigger super benefit. There are different types of super contributions you and your employer can make to your super.

Super contribution limits for individuals
You can put as much money as you like into your super, but there are limits on how much you can contribute before you pay extra tax.

The different limits (known as caps) depend on the type of contributions made into your super fund. This document will assist you determining the limits that apply to you for the financial year 2014-15

Super withdrawals
Withdrawals from your super are generally restricted to your retirement age which is usually between 55 and 60, or if you meet a condition for early release.

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