The basics of super
|Our basics of super section covers the below topics:|
In the past 15 to 20 years superannuation has become a prominent part of the Federal Government’s Retirement Income Policy. This policy refers to how a government deals with the question of who provides for people once they retire. At one extreme, governments may provide a comprehensive level of support for retired people. At the other extreme, retired people may be expected to look after themselves with no government assistance.
The Australian Federal Government's retirement income policy lies in between these two extremes, and has four main elements:
- Compulsory superannuation - employers must contribute a minimum amount of superannuation on behalf of employees into an approved superannuation plan. Currently the minimum is 9% of your salary.
- Voluntary superannuation - employees are encouraged, through tax concessions, to supplement the compulsory superannuation contributions that employers make on their behalf.
- Super co-contribution - the government will contribute up to $1,000 each year depending on the level of personal (after-tax) contributions and income.
- The age pension - a 'safety net', designed to provide a minimum standard of living in retirement.
Superannuation is a convenient way for you to save for your retirement over a long period of time. If your savings are invested by experienced investment managers it can grow quickly.
Because the Federal Government taxes superannuation savings at lower rates than most other forms of savings, understanding how your superannuation works and planning for your retirement is therefore extremely important.
Catholic Super's investment options or Catholic Super’s Responsible Investing approach.
We offer three types of insurance cover to members:
- Death cover – your beneficiaries receive a benefit if you die
- Total and permanent disablement (TPD) cover – you receive a benefit if you become seriously disabled and are unlikely to ever work again
- Income protection – you receive an income stream for a specified period if you can't work due to temporary disability or illness.
As with other insurance policies, you will pay insurance premiums. They are deducted from your super account. New members are provided with a default level of cover. If that does not fully meet your needs, you can apply to increase your level of cover. You can also choose to either lower or even cancel the cover.
If you have your Member Number and password you can check your account online through Member Online right now. Not registered? No problem, you can register online.
Do you have more than one super fund? Learn more about consolidating them into one and paying less fees.
To work out whether you have enough for your retirement goals, check out our Retirement Modeller or read more about Retirement Planning and research done on the cost per week and annually in maintaining a modest or comfortable lifestyle in retirement.
financial advice to ensure you are fully aware of tax and other implications. It’s important to talk to your financial adviser before embarking on any investment strategy.
How Can Catholic Super Help? Catholic Super offers retirement and financial planning services to all members through its wholly owned subsidiary, Catholic Financial Services Pty Limited (AFSL 298046). Our professionally trained advisers provide financial planning services to all Catholic Super members.
Have more questions about superannuation? Contact Us or call 1300 655 002 (Mon-Fri 8.00am-5.30pm AEST).
* Vanguard Center for Retirement Research