Confused about Superannuation?

Confused about Superannuation?

5 March 2019 - posted in Pre-Retirees by Brenton Miegel

It would be fair to say that if I had a dollar for every time I explained “superannuation” to someone over the past 20 years, I could be most comfortably retired!

Confused about Superannuation?

Here are my answers to my three most common questions!


It would be fair to say that if I had a dollar for every time I explained “superannuation” to someone over the past 20 years, I could be most comfortably retired!

The problem is that superannuation is such a complex area that the explanations provided would have been so wide and varied. I’m certainly not proposing in this article to explain superannuation and all of its nuances, more to offer some answers to 3 of the more common questions that I am asked.

It’s important to remember that superannuation is a very tax effective investment vehicle. Making smart decisions early in your working life can take advantage of the significant effect that compounding interest can offer over the long term. How your superannuation performs has a lot to do with the choices that you make and what action you take.

The three questions you should ask yourself are:

  • How much should I contribute and how frequently?
  • What is my superannuation invested in?
  • What super fund that should I choose?


How much should I contribute and how frequently?

The amount, and how frequently, you contribute to superannuation will have a very real impact on the performance of your fund. Salary sacrifice is a very tax effective way of building superannuation, but remember that there are contribution caps that apply. You can also add money to superannuation from your own savings, as non-concessional contributions. Either way, compound interest will work in your favour over the long term.

What is my super invested in?

How actively involved are you in decision-making with your superannuation? If your answer is “not very” then you are not alone. Many people rely on their employer to select a default fund, and leave it at that. This approach may mean that you end up with a portfolio asset allocation that does not suit your age/stage of life and therefore potentially not offer the best outcome for the long term.

Which fund should I choose?

There are a number of things to consider when assessing what super fund might be right for you. This can include fees and charges, the type and number of investment choices available, what insurance cover is offered, the ease of access to information about your fund and are you required to do much of the work? Industry super funds offer a simple and low touch service that can meet the needs of many investors. Self managed super funds are often set up by those people who are looking to be far more active in reviewing and monitoring their superannuation (and often have direct property assets invested within their superannuation). Retail super funds are the third option available for investors and are often have a broader range of investment options than industry funds, without the hands-on approach of a self managed super fund.


Ultimately, there is no one “right fund” that suits everybody! You are able to choose the fund that will suit your own individual circumstances. At Goldsborough Financial Services, our advisers are able to meet with you, assess your existing superannuation fund(s) and offer appropriate recommendations regarding what fund might be best for you after considering your overall financial position.


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