What is super?

Superannuation is a way to save for your retirement. The money comes from contributions made into your super fund by your employer and, ideally, topped up by your own money. Sometimes the government will add to it through co-contributions and the low- income super contribution.

If you are an employee, your employer must pay 9.25% of your salary into a super fund. This is called the Super Guarantee and it's the law. The Super Guarantee has risen to 9.5% by 2019.

Over the course of your working life, these contributions from your employer add up, or 'accumulate'. Your super money is also invested by your super fund so it grows over time. When you retire, you will have money to maintain your lifestyle - a 'nest egg'. Super is a lifetime investment that has many benefits.

Types of superannuation funds?

There are four main types of super funds available. It s important to consider which one best suits your individual circumstances.

These include:

• Industry Funds
• Corporate Funds
• Government Funds
• Retail Funds

Identifying the right fund for you depends on your personal goals and what you aim to achieve. Is it the one with the best insurance options, the best performance, the most flexibility or the lowest fees?

The vast majority of super funds in Australia exist because someone else usually your employer chose it for you.¹ Given that scenario, they will usually choose one that is easiest for them and as a result, your super fund probably wasn t chosen according to your personal needs.² Further, when a super fund is chosen for you, there s a good chance that your investments were chosen automatically, meaning most Australians end up in what s known as balanced funds , which in many cases don t meet your personal and individual needs.

If you don t understand super, wish to explore ways on how to make the most of it, or simply want to consolidate your existing funds, make an appointment to sit down with an AFPS adviser today. We can explain the benefits and potential pitfalls of your current super fund and showcase some alternative options that may help you achieve your financial goals in a more positive way.

Self-Managed Super Fund (SMSF)

Blending insurance with super

While the benefits of personal risk insurances are unquestionable, having the right cover AND making it affordable can be a challenge. The good news is that, under Australian superannuation law, the premiums for life, TPD and income protection insurance can actually be paid for through your super fund.

There are some consequences to having your insurances in your super fund, so it is important to take these into account when designing an insurance package and evaluating your superannuation investment options. Our team of advisers will investigate and showcase a range of options to help identify the best solution for your individual needs.