Super Annuation
Oct 19th 2008, 7:00 pm
#1
BE Forum Addict
Thread Starter
Joined: Nov 2006
Location: Buderim, Qld, Australia
Posts: 1,072
Super Annuation
Hi, Hoping someone can help us understand.
My OH started work last week and his employer is paying the usual 9% super. Is super the equivalent to "state pension" back in the UK or is it a private pension and should we be contributing more?
Any advise appreciated. Thanks,
Lynn xx
My OH started work last week and his employer is paying the usual 9% super. Is super the equivalent to "state pension" back in the UK or is it a private pension and should we be contributing more?
Any advise appreciated. Thanks,
Lynn xx
Oct 19th 2008, 8:00 pm
#2
Worongary
Joined: Sep 2005
Location: GC hinterland
Posts: 10,288
Re: Super Annuation
Hi, Hoping someone can help us understand.
My OH started work last week and his employer is paying the usual 9% super. Is super the equivalent to "state pension" back in the UK or is it a private pension and should we be contributing more?
Any advise appreciated. Thanks,
Lynn xx
My OH started work last week and his employer is paying the usual 9% super. Is super the equivalent to "state pension" back in the UK or is it a private pension and should we be contributing more?
Any advise appreciated. Thanks,
Lynn xx
Oct 19th 2008, 8:06 pm
#3
BE Enthusiast
Joined: Jun 2008
Posts: 912
Re: Super Annuation
Basically all employers must put 9% of your gross salary into superannuation. There are lots of different funds though and you can choose within certain restrictions which fund you want your super put into.
You can also opt to "salary sacrifice" into super, which means putting an optional extra amount into the fund on top of the compulsory 9%. If you can afford to, it's a very good idea to do so because up to a certain point the government will contribute extra to your fund for every dollar you contribute (not sure if it's dollar for dollar but it's something like that).
You should opt for an "industry" super fund rather than a commercial one, because they have far lower fees.
It's a good system overall but the main failure of it is that if you change jobs, they make it extremely difficult to move your super over and as a result a lot of people loose track of all their super funds from various jobs they have had, and the money is eventually lost to them.
The other major problem is most funds do not keep you informed of how your super is performing. You have to go out of your way to find out your balance.
Keep records of your super fund and account number and make sure you follow up if you change jobs. It can be a major hassle but is well worth it in the long term.
Hope that helps.
You can also opt to "salary sacrifice" into super, which means putting an optional extra amount into the fund on top of the compulsory 9%. If you can afford to, it's a very good idea to do so because up to a certain point the government will contribute extra to your fund for every dollar you contribute (not sure if it's dollar for dollar but it's something like that).
You should opt for an "industry" super fund rather than a commercial one, because they have far lower fees.
It's a good system overall but the main failure of it is that if you change jobs, they make it extremely difficult to move your super over and as a result a lot of people loose track of all their super funds from various jobs they have had, and the money is eventually lost to them.
The other major problem is most funds do not keep you informed of how your super is performing. You have to go out of your way to find out your balance.
Keep records of your super fund and account number and make sure you follow up if you change jobs. It can be a major hassle but is well worth it in the long term.
Hope that helps.
