How super works

Superannuation (super) is a tax effective way of saving money for your retirement. For many Australians, super will be their main form of retirement income.

During your working life, your employer makes contributions to a fund of your choice and the earnings you receive are reinvested, building up in value over time.

Additional contributions can also be made by you, your spouse, your employer and in some cases the government. A key feature of superannuation is that tax concessions are provided by the government at various stages.

Generally, your superannuation benefits must remain in super until you satisfy a condition of release such as reaching age 65.

To find out more please talk to your financial planner.

What’s good about super?

Quite a lot, as it happens:

  • If you’re employed, your employer is required by law to put 9.5% of your salary into your super (this gradually rises to 12% by 2022)
  • Most people pay less tax in super than they would by putting cash in a bank savings account or investing directly in managed funds or shares
  • If you’ve got super, you’re an investor – and you have control over how your money is invested, and at what level of risk
  • Paying extra into your super is very easy – and usually tax-deductible
  • When you reach age 60 you can withdraw your super as a lump sum and pay no tax (though most people are more likely to convert their super directly into an ongoing income stream).

Get help, take action

For most of us, our super is likely to be the principal means by which we fund our retirement years. Our accumulated super will probably be the biggest financial asset we ever own, apart perhaps from the family home.


And what’s ironic about super is that with the right help at the right time, sorting out your super and getting it on track to give you the best retirement lifestyle possible isn’t so difficult.


A Fiducian financial planner will know the superannuation system inside out. They’ll thoroughly asses where you currently stand, and lay out an actionable road map to get you where you want to go. They’ll make the complex simple, cut out the irrelevant stuff and not blind you with jargon.


As part of the process of working with you on your super strategy, and depending on where you are in life, your financial planner might guide you through some of the following:

Your working years

  • How much super are you likely to need by the time you retire?
  • The best super fund for you (remember, you don’t have to stick with your employer’s super fund)
  • Should you be putting more into your super by tax-effective salary sacrifice?
  • Is your super money in the right investment option for you?
  • Should you combine multiple super accounts into just the one?
  • Make sure your super wealth would go to the right person if you died.

Nearing retirement

  • When can you get access to your super?
  • Taking super as a lump sum or income stream – and the tax implications
  • Strategies to transition to retirement by working part time without any reduction in your overall income
  • Pension or annuity?
  • Will you qualify for the aged pension?
  • Limits on how much money you can have in super.

We want all our Fiducian clients to have financial peace of mind and secure the best possible future for themselves and their families.


Talk to one of our financial planners, and let them show you how a bit of time spent on your super now can make all the difference in the world.