How super works The essential things you need to know about super.

What we will cover 2 What is super? Choosing a super fund Super contributions Super investment options Super fees Insurance through super Where to get more information

What is super? 3 Superannuation is a way to save for your retirement The money comes from contributions made into your super fund Your employer must pay 9.25% (increasing) of your earnings into your super fund Your money in super accumulates over time to give you a nest egg when you stop working

Choosing a super fund Any extra benefits? The lower the fees the better An investment option for you Performance over a 5-year period Insurance you need Good customer service 4

Super contributions 9.25% super guarantee (increasing) Extra super contributions: –After-tax contributions –Government co-contribution –Salary sacrificing 5

After-tax contributions Deposit your personal money into your super account Contributions from your after-tax income don't get taxed when your fund receives them because you have already paid tax There are limits 6

Free money from the government If you earn less than $48,516 Up to $500 per year, for $1,000 contributions Double your money instantly if you’re income is less than $33,516 7

Salary sacrificing An agreement with your employer Part of your salary is ‘sacrificed’ straight into super Reduces your income Increases your super Can create a tax advantage 8

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Super investment options 10

Which investment option? You want your super to grow and to keep pace with inflation. A growth or balanced strategy may suit you over the long term. Historically, over any 20-year period, a growth or balanced strategy gives better returns than more conservative investment options. 11

Fees A 1% difference in fees now could be a 20% difference in 30 years Pick a fund that charges lower fees Typical fees include: –ongoing administration fees –member fees –investment management fees –contribution fees –adviser service fees –insurance premiums 12

Insurance through super Life cover Total and permanent disability cover Income protection Benefits: Can be cheaper Tax advantage Easy to manage 13

Questions?

Where to get more info Go to where you can find lots of information, tools, calculators and booklets to download or orderwww.moneysmart.gov.au Ask your super fund directly, or go to their website Ask your employer 15

Online calculators Go to –Superannuation calculator –Super contributions optimiser –Super vs mortgage calculator –Employer contributions calculator –Retirement planner 16

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