Australian Superannuation

Knowing how to get the most out of your super will help you save for your retirement and reduce stress. Retirement plans may be set up by employers, insurance companies, the government or other institutions such as employer associations or trade unions.

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 too.

Your employer must currently pay 9% of your salary into a super fund. This is called the Super Guarantee and it's the law.

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 live off – a nest egg.

Super is a lifetime investment that has many benefits.

Most people can choose which super fund they'd like their super contributions paid into. If you want to choose your super fund, tell your employer by filling in a Standard choice form from the Australian Taxation Office (ATO) or from your employer.

In some cases your employer will decide which fund your super is paid into. If you don't (or can't) choose your super fund, your employer will put the money into a 'default' super fund, a fund nominated under an industrial award or by your employer.

An example of the size of superannuation in Australia, and one of Australia's largest funds, AustralianSuper, currently has more than 1.5 million members, over 120,000 participating employers and over $32 billion in funds under management. Like many it is a broad-based, run-only-to-profit-members industry fund, catering for employees and employers from any industry or profession in Australia.

They offer high value services to employees and employers and utilise their size and financial strength to negotiate reduced fees for investment, insurance and other services.

If you retire and have reached your preservation age, you can withdraw your super. There are three ways you can get your super:

• As a lump sum
• As a retirement income stream (e.g. a monthly payment)
• A combination of both

If you choose to take your super as a retirement income stream, the money that you're not accessing continues to work for you and earn interest.