Read These Superannuation Facts and Your Older Self Will Thank You Later

Treat your future self.

‘Superannuation’ is that boring word you hear on TV commercials your parents still watch.

But learning about what it means now, rather than later, could mean you’ll have thousands more to spend on your retirement trip to the Bahamas.

Here are the facts you can use for financial freedom in your future—and if they help you out, be sure to check out our Real Money Talk course on Student Edge Plus to develop your financial foundations.

1. You can choose where your super goes.

If you’re working or about to start a new job, you usually need to complete a superannuation form for where you want your super to be paid.

New laws introduced in November 2021 will see your first or current active super account 'stapled' to you as you move from job to job. This means that if you’re currently with an underperforming fund, you will be stuck with them unless you take action to choose a good one.

And if you get stuck to an underperforming fund? Well, you could end up with less in retirement. So, when your employer asks where you would like your super money to go, its worth doing your research.

2. If you work part time, you can still get super.

Super often sounds like something older adults with high paying jobs are entitled to. But this is a huge misconception.

There is great news for those of us working in casual jobs. The 2021/22 Federal Budget scrapped the $450-a-month threshold for guaranteed employee payments into super, so as of 1 July 2022, eligible employees who earn under $450 per month will be paid super.

Currently, under the superannuation guarantee, “employers have to pay super contributions of 10% of an employee’s ordinary time earnings” when they’re paid $450 or more before tax in a month. You must be over 18 years, or under 18 but working 30 hours a week.

Know your entitlements!

3. A “Super Co-contribution” is available for low and middle income workers.

If you earn less than $56,112 in the 2021-22 financial year you could be eligible for a government co-contribution of up to $500 when you make a personal after-tax contribution into your super.

4. You can add to your super through “salary sacrifice” and other methods.

Your employer’s compulsory super contributions may not be enough for the retirement you want. In other words, if you wanna spend the latter years of your life in a mansion in some exotic place, you may want to add to your super.

One of these methods is “salary sacrifice”. It involves putting some of your income directly into your super before your employer calculates and deducts tax. It's a great way to rack up that coin!

Feeling a bit more cluey about all things super? It feels good to be empowered. Check out our Real Money Talk course on Student Edge Plus for more where that came from.

Before acting on any advice or information in this article, you should consider your money goals and financial situation to ensure it’s appropriate to you.