Grow It

The aim is to have as much money in your super account as possible when you retire. When you retire, that means that you don't have income from work to pay for expenses or luxury items. So, the goal is to use your money in your superannuation account to live on.

First Nations Foundations is an independent company that provides an information service. The content on the website is not advice. There is no explicit or implied endorsement of any particular companies, products or strategies. The information on this site is educational and is intended as a general overview and no responsibility can be taken for any change in your personal circumstances of any persona acting on this information. You are advised to discuss your personal situation with your financial planner, accountant or other industry professional.

How much do I need?

The Association of Superannuation Funds of Australia (ASFA) recommends having $466,000 for retirement if you are single, or $640,000 if you are a couple. Remember that this money needs to last you 20 years to pay for all your expenses when you finish working.

Your boss pays you 9.5% of your wage into super, which will add up over the long run but you can elect to pay more into your super account to make it grow even quicker. Have a look at the two examples below. They both have the same income and same investment returns. Ed’s boss pays him the minimum amount of super required, while Jack pays an extra $25 per week. 

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This is Ed

Ed earns $50,000 per year. His boss pays 9.5% ($4,750) of his wage into his super fund every year. The fund earns 7% per year and Ed works for 30 years.

Ed could retire with a super balance of $250,806

This is Jack

Jack also earns $50,000 per year and his boss pays 9.5% ($4,750) into his super fund. But Jack adds $25 per week to his super fund using his own money. His fund also earns 7% per year and Jack works for 30 years.

Jack could retire with a super balance of $308,524

ch_jd_waves
Paying $25 per week now means that Jack could have an extra $57,718 when he retires!
Irene Smiling Face
Aunt Viv says the young ones should start early. Even just $25 a week could mean nearly $60,000 more when you retire. That could be the difference between having a real nice car or good holidays when you’re older.

How to choose a good super fund

Difference between 'retail' and 'industry' super funds

Retail Funds

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Retail Funds

Retail funds will offer a wide range of investments. The fees are generally medium to high. The company that owns the fund will aim to keep some of the profits.
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Industry Funds

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Industry Funds

Industry super funds generally have low to medium fees. They are not for profit meaning that the profits are put back into the fund to benefit their members.
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Irene Smiling Face
Aunt Viv says, when looking for a good super fund you need to look into performance, fees, insurance and their values.
Performance
Have a look at how well the fund has performed over the past 5-10 years. This will be shown as a percentage and refers to how much they make from investing.
Fees
The two main fees that super funds charge are admin and investment fees. An investment fee is what a fund gets for managing your money. Experts recommend aiming for a fee of under 1%.
Insurance
Super funds will offer a variety of insurance options. The main ones being life, disability and income protection. It's worth having comparing your funds insurance to others.
Aligned Values
There is an increase in the number of people that select a super fund that is aligned with their personal values. The funds that support this site for example, support Aboriginal people and communities.

Comparing funds

Below are a few different websites that compare super funds. Remember to look at for the four things that we mentioned above when deciding which fund you want to use.  While comparison sites can be useful, it is worth knowing that they may make money through link clicks and advertisements on their website.  

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