June 5th, 2009 — Self Managed Superannuation
How to choose your superannuation fund? A guide
The first time you start contributing towards your superannuation fund you are likely to have many questions. Not least of them will be, what options do I have. If you know anything about funds you will know that they don’t all perform in the same way. Having the right to choose what kind of fund to choose will determine the profit, accessibility and efficiency of your superannuation fund.
The first question you need to ask yourself is:
Am I eligible to choose a super fund?
The answer will be yes if:
1) Your specific super is paid under a federal award called ‘notional agreement preserving state award’.
2) Your employment is under another award that doesn’t need super support or,
3) You are not employed under any other award or agreement.
As you can see the chances are that you qualify to choose your super fund if you are contributing towards it. It is probably more useful to ask when you are not able to choose your super fund.
The answer to that question is when you are paid under a state award or some other kind of worker agreement, or you have reached a particular level of benefit in a certain super fund. Some civil servants (federal and state public sector) are excluded from the choice of superannuation.
If you are able to chose your superannuation, what comes next?
If you are eligible to choose a superannuation fund your employer will or rather should give you a Standard choice form (NAT 13080) before 28 days of when you begin work.
This form will give you two main options:
1) Stay with the fund your worker is using or
2) Choose for yourself.
If you choose yourself you will have the option of investing your superannuation into lower or higher risk funds. Higher risk funds can produce higher profits but are obviously also much more likely to drop in value.
As usually is the case with financial matters your best weapon is information. This website has ample resources on understanding and choosing your superannuation fund. You can also visit www.fido.gov.au , the Australian Securities and Investment Commission website or call 1300 300 630. Your personal research and the advice of experts will help you make the best choice of superannuation fund for your personal circumstances.
However the truth is that you don’t have to choose a specific superannuation fund if you don’t wish to. If you take not specific action your employer will deposit your contributions into the fund of his choice. If you are just starting to pay towards your superannuation fund you can stick with your employers fund and choose to change later.
What is important is that you get the choice to choose your superannuation fund; it is your right as a worker. So what should you do if you are not given the choice? Your first step should be to ask for a Standard choice form. If you are denied one you can call 13 10 20 and inform the Tax Office.
June 4th, 2009 — Self Managed Superannuation
What Is Superannuation? An Overview.
Superannuation? If it is the first time you hear that term you might think it sounds more like the name of a super hero series with an unfortunate marketing consultant. Although as every Australian citizen knows or should know, superannuation is an excellent way of saving money.
What is Superannuation?
Superannuation is a government scheme where individuals and employers deposit money into a saving account that produces benefits for the worker. Individuals often hear about superannuation for the first time when they start working and their employer begins to pay towards their superannuation fund.
The money you save with your Superannuation provides you with benefits for when you retire, have an accident or in case you die benefits for your beneficiaries.
Superannuation helps you to save, making it easier and more productive to do so. Remember when Mom and Dad promised to give you a dollar for every dollar you saved, superannuation does something similar, just that instead of Mom and Dad it is your employer that complements your contribution.
Why is Superannuation important for you?
Today’s financial crisis has compromised most saving funds and pension funds are not exception. Many have much less in their saving plans than they used to and are finding it harder to continue saving. For those that are starting to work it is very likely they will not receive a pension as the population grows older and older and there are not enough young adults to pay the pension bill of the previous generation. Superannuation is a way of saving your own pension fund with your own savings and the contributions from your employer.
Who pays for your Superannuation?
You and your employer pay for your superannuation. As long as you qualify for it, your employer is obligated to contribute towards your superannuation fund. You also can contribute towards your superannuation fund. Your superannuation fund travels with you when you change jobs, are unemployed or take a year off. You can continue to deposit funds into your superannuation funds even when you are not working or your working contract does not qualify for employer contributions to your superannuation fund.
Make your Superannuation fund work for you?
It is hard work to save for the future. It is therefore a good idea to make the most out of the money you manage to save. This can be done by choosing the right superannuation fund. These funds are by their very nature long term funds. However it still takes care and research to choose the right fund for you and your superannuation fund. You should make sure you are doing your best to help your superannuation fund grow. In order to make the most of your savings it is a good idea to ask for advice from a professional. He will be able to help you understand the options at your disposal and which are the best choices for your personal circumstances.
This website contains many articles that will help you understand what Superannuation is and how you can make it work for you. Please feel free to browse our pages to get the information you need to make the most of your Superannuation.