Superannuation Basics

What is superannuation?

Superannuation or ‘super’ is an essential part of planning for your retirement. It involves money set aside by you and/or your employer during your working life to ensure you have financial support when you retire.

Super works like a dedicated savings account, specifically for retirement. The more you contribute and the better your investments perform, the more comfortable your retirement can be.

Here’s a quick guide to understanding superannuation, its benefits & how to manage it effectively -

Types of contributions

Employer contributions

If you're employed and receive a wage, your employer is legally required to contribute to your superannuation fund. This is known as the Superannuation Guarantee (SG).

The current mandatory contribution rate is 11.50% of your gross wage. This ensures that an amount on top of your normal earnings is set aside for your retirement, contributing to your financial future.

A key point to remember: this obligation applies regardless of whether you are causal, a part-time or full-time employee and irrespective of the number of hours you work each week. Your employee must make superannuation contributions based on your total earnings.

Voluntary contributions

In addition to the mandatory employer contributions, you can also make voluntary contributions to your superannuation fund.

This can be done through several methods and can significantly enhance your retirement savings.

Options for adding to your super:

Salary sacrifice with your employer

Making extra personal super contributions

Some contributions can be deductible, providing you with a tax benefit on your individual return.

Talk to the team at DS Financial Partners to learn more.

When are you eligible to access your superannuation?

Your super is designed to ensure you have financial support in retirement.

However, there are specific conditions under which you can access your superannuation funds, some of these being earlier than retirement.

Here’s a breakdown of when and how you can access your super:

Retirement age

You can access your superannuation when you turn 65, regardless of your employment status.

Alternatively, if you reach the preservation age of 60 and are no longer employed, you can also access your superannuation.

First home super saver scheme

If you're a first-time home buyer, you may be able to withdraw some of your superannuation savings to help with the purchase of your home.

This scheme allows you to use voluntary contributions made to your superannuation fund to boost your home deposit.

Financial hardship

In cases of severe financial difficulty, you may be eligible to access your superannuation. This includes situations where you are struggling to meet basic living expenses.

Your superannuation fund may allow early release of your funds under these conditions.

Compassionate grounds

You may be eligible to access your super for purposes such as medical treatment, funeral assistance and palliative care.

Eligibility is assessed individually based on criteria set by the Australian Taxation Office (ATO).

How to check your superannuation balance

To keep track of your superannuation balance, you can access your information through different methods:

MyGov portal:

Your superannuation fund’s website:

Most super funds have online portals where you can log in and check your balance. You can also contact them directly.

Annual statements:

Your super fund will send out an annual statement that details your balance and contributions.

It is never too early to start thinking about your super, even if retirement is decades away!

If you're looking to explore the benefits of superannuation contributions or are interested in managing your own super fund, the experts at DS Financial Partners are here to help.

Reach out to us for personalised advice and strategies to make the most of your superannuation and ensure a secure financial future.

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