How will my new job contribute to my superannuation?

Congratulations on the new job! While you’re busy getting settled and learning the ropes, it’s also a perfect time to think about your superannuation – your nest egg for retirement. Here’s how your new job contributes to your financial future:

Super 101: Employer Contributions

Australian law mandates that employers contribute a specific percentage of your salary towards your superannuation. This contribution rate, currently 10.5% (as of May 2024), is called the Superannuation Guarantee (SG). Essentially, your new job means regular deposits into your super account, growing your retirement savings over time.

Taking Charge: Choosing Your Super Fund

In most cases, you have a choice about where your employer directs these contributions. Your new employer will likely provide a “Standard Choice Form” within 28 days of your start date. This form lets you nominate your preferred super fund.

Do I Have a Choice?

  • Yes, in most cases! You can choose an existing super account you already have, or select a new fund altogether.
  • No choice in some situations: If you’re covered by an enterprise agreement made before 2021 specifying a particular fund, or you’re in a defined benefit super scheme, your choice may be limited.

Why Choose Your Super Fund?

Not all super funds are created equal. Here are some factors to consider when making your choice:

  • Fees and charges: Compare the fees associated with different funds. Lower fees mean more money stays invested for your retirement.
  • Investment performance: Research the historical returns of different funds. This can give you an idea of how well they’ve grown their members’ money.
  • Investment options: Some funds offer a variety of investment options, allowing you to tailor your super to your risk tolerance.
  • Industry focus: Some funds cater to specific industries, potentially offering investment choices aligned with your career sector.

Don’t have a Super Fund? No worries!

If you’re new to the workforce or haven’t chosen a fund yet, your employer will likely direct your super contributions to their default fund. This is a perfectly acceptable option, but it’s also a good opportunity to explore your choices and potentially find a better fit.

Taking Control: Consolidation is Key

Many Australians end up with multiple super accounts from different jobs. This can lead to higher fees by having several accounts with smaller balances. Consider consolidating your super into a single account to minimize fees and simplify your super management.

Congrats on the new chapter! By understanding how your new job contributes to your super and taking an active role in choosing your super fund, you’re laying a strong foundation for a secure retirement.


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