Most people, especially those who are new to Australia, are stumped by information related to Super Benefits and the Superannuation Guarantee. Whether it’s related to entitlements, co-contribution rules, Super Refunds, super taxes, retirement and making extra contributions, the information is not easy to understand for a ‘beginner’. So, they would naturally find it a complex and mind-boggling task to utilize the fund in a way which would bring them the best benefits later in life.
So, here we give the preliminary steps which a beginner has to follow, which would help their future:
Find information about all your super funds.
You may have had different super funds under different employers, for instance. This involves different account numbers, and balances. You can decide whether to consolidate all these into one account, which is easier to keep track of. You may not know the names of all these funds, but this information is not difficult to find.
Learn about your super fund/s.
The majority of super funds provide useful information about how they work and the benefits you would receive.
Make sure all your super funds carry your tax file number (TFN).
If your super fund doesn’t carry your TFN, your employer’s contributions would attract extra taxes, and it won’t be possible for you to make any after-tax (non-concessional) contributions.
Make a choice.
If you decide to combine all your accounts into one super fund account, or have a primary account, decide which super fund that would be, and make arrangements for contributions to be paid into that account. Super benefits in other funds can also be transferred to this fund.
Take note of investment options within the fund.
Most fund members consider ‘balanced’ or ‘growth’ investment options which are designed for average fund members with over 10 years left to retire.
Related Superfund Articles: