Get to know your super

Your super is money you already have working for you.

If you’re employed in Australia, your employer will generally have to put super contributions into a fund for you. It’s money for retirement, not an everyday savings account.

The account: The super fund holds the account under rules about tax and when you can access the money.

The investments: Depending on your option, your super might be invested in shares, bonds, property and cash.

Main point: Super is your retirement money, invested through a fund. Shares mean owning part of a company; bonds usually mean lending to a government or business.

Not all super options are the same.

Two funds can invest differently and charge different fees. Even two options inside the same fund can be quite different.

Look at the option you are in.: Look up which option you’re currently in, what it invests in, what it costs and whether you’re paying for insurance. You don’t have to switch. Just understand what you’ve got first.

What does a super fee cost in dollars?

Imagine you have A$20,000 in super. Move the annual percentage fee to see what that might cost for one year, before fixed and other charges.

Real super fees can include fixed costs and other charges too. Check the current documents for your own fund.

Have a look before making changes.

You can learn plenty just by opening your super account and checking what’s there.

Fees and investments: Find your investment option and check its fees. The name alone won’t tell you everything.

Insurance and beneficiaries: See whether you have insurance and who you’ve nominated to receive your super if you die.

Main point: Check your investments, fees, insurance and beneficiaries before deciding whether to change anything.