Choosing your first super fund

2 min read

An important part of joining the workforce is receiving compulsory employer-paid superannuation guarantee (SG) contributions.

It's your money

Retirement may be a long way off now but the compulsory SG contributions your employer makes is still your money – even if you cannot access it until you reached the eligible age. So it is worthwhile to think about how you would like your super invested.

Are you eligible for employer-paid super?

You will normally be entitled to receive SG contributions from your employer if you are 18 years old or over and earn $450 or more (before tax) in a calendar month.1 

You can also make contributions of your own to your super from your after-tax pay or pre-tax salary, known as personal contributions. With time on your side, even small regular personal contributions could make a difference to your super over the course of your working life. Your employer may also allow you to make extra contributions from your pre-tax salary, these are known as salary sacrifice contributions.2

Your finanacial adviser can review your situation and recommend ways for you to help grow your super.

Which super fund should you choose?

Your employer should be able to suggest a default super fund – meaning a super fund your work has chosen, if you don’t nominate a fund of your own. Most employees are free to choose their own super fund, and this is an area where your financial adviser can help, offering suggestions on the funds that may be suitable for you.

If you choose to accept your employer’s default fund, be sure to make a note of the super fund and your account number. This way you can take the same account with you when changing jobs – a way to ensure you don’t lose track of your super in the future.

What to consider when choosing a super account?

It can be tempting to choose your super fund based on past year’s returns but there is so much more to consider. Be sure to look at the fees your fund charges, the investment options you can select for your super, the availability of insurance such as life and income protection insurance, as well as the range of additional services that may be available to fund members.

Need help understanding your super options? Contact us or speak to your financial adviser

Salary sacrificing, also called salary packaging, is an agreement you make with your employer to forgo some of the wages you haven't earned yet in exchange for benefits of a similar value. To work, the agreement must be made before the income is earned.

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1 ATO website -
2 ATO website -

This information is current as at 15/08/2016.

This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs.

This information provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.

Generally, contributions to a superannuation fund are preserved. The government has placed restrictions on when you can access your preserved benefits. In general, benefits will not be able to be paid until a member is age 65, or has permanently retired and is above his/ her preservation age (i.e. 55 years up to 60 years depending on when the member was born). For more information, please refer to the ATO website.

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