What is Super and how does it work?
A guide to understanding the basics of super
Superannuation, commonly known as ‘super’, is money accrued and set aside while you’re working, so you’ll have money for retirement. Super is paid into your nominated fund, where it’s invested on your behalf by a trustee, to help you earn returns and grow your savings.
The amount of super you’ll end up with when you retire depends on a number of factors including:
· how much has been made in contributions
· how long you super’s been invested
· the type of investment option you’ve selected
· the investment returns your money has earned and
· the amount you’ve paid in fees and insurance premiums.
Many people think of their super as an investment that takes care of itself but the choices you make about your super and investments could make a big difference to your quality of life in retirement.