5 most commonly asked questions about super
Superannuation can be a tricky topic to get your head around, particularly if you don’t have a Masters in Finance. That being said, if you’re not across certain aspects of superannuation, in many ways you’re putting your financial future at risk.
We’ve looked at five of the most commonly asked super questions. By understanding these issues you can be confident your finances are in a good position.
1. How can I track down lost super?
If you’ve changed jobs over the years you may feel as though you’re missing some of your super. The good news is that it’s relatively easy to track down these day. Equip has a useful SuperMatch service that helps you find your lost super and figure out how much superannuation you have in other funds. To learn more about SuperMatch click here.
2. How much super do I actually need?
This question is by no means straightforward and depends largely on the type of lifestyle you wish to lead after you retire. Figures from the Australian Prudential Regulation Authority (APRA) suggest that most people will need an income equivalent to about 60 per cent of their annual salary. It’s important to note that the current age pension rate is about 25 per cent of average weekly earnings, so the more you’ve got the better off you’ll be. That being said as Equip notes in this video, super should be seen less as a pot of gold at the end of a rainbow and more as a constant stream of income.
3. When can I withdraw my super?
Government restrictions means most people can only access super when they retire, but depending on your birthdate from age 55 you can access some of your super while you’re working as part of a transition to retirement strategy. There are also exceptional circumstances where you can access your super early on compassionate grounds or because of severe financial hardship.
4. What if a previous employer has not made compulsory contributions?
Employers are required to tell the Australian Tax Office (ATO) about contributions that have been made for employees. The ATO has power to audit employer’s accounts, and charge interest on any outstanding payments. So if you feel as though one of your past employers hasn’t been doing the right thing, you can ask the ATO to investigate.
5. Can I nominate a person to receive my super if I die?
Most super funds give you the opportunity to nominate a beneficiary. This is the person who receives your benefits, should you pass away. Nominations can be binding or non-binding, and if there is no nomination the trustee of the fund generally decides who the money should be paid to, based on certain rules and regulations.
How well do you feel as though you understand superannuation? Do you feel as though information could be more freely mad available?
Please let us know in the comments below.
Equip manages $7 billion of investments for members working across a wide range of Australian industry sectors. This superannuation fund has been providing strong investment performance and has been a reliable provider of retirement benefits for over 80 years.
Related links:
What the 2016 budget means for your retirement
Hidden costs to retirement village contracts
The costs involved with residential aged care