In its annual awards ceremony on 17 May 2023, Chant West named UniSuper as its Super Fund of the Year for the second year running. In 2022, its first year as a public offer fund, UniSuper won the top all-rounder gong awarded by both Chant West and SuperRatings.
Assume, for example, you will need 65 per cent of your pre-retirement income, so if you earn $50,000 now, you might need $32,500 in retirement.
Savings in super can do more
When you save money in a regular bank account, you're earning interest at a fixed rate. In super, you have access to lots of ways to invest your savings, giving you more options that could earn a better return and see your savings grow faster.
The balance in your superannuation account generally rises over time as you accumulate contributions from your employer. However, super fees and changing investment performance can lead to dips in your super balance.
The best super investment mix will usually have exposure to Australian shares, international shares, property, fixed interest, cash and possibly alternative assets such as infrastructure, commodities and private equity.
As a general rule, most people will need 70% of their take home pay to maintain their lifestyle in retirement. And since we're living longer, which is great, your super may need to last for 30 years or more after you retire.
Super guarantee (SG) increase
From 1 July 2023, the SG rate for employers to pay on behalf of eligible employees increases from 10.5% to 11%. Further increases of 0.5% are scheduled each financial year until 2025 when the rate reaches 12%.
The SG requires employers to pay 9.5 per cent of an employee's earnings into their superannuation fund. From July 1, 2021, the SG is legislated to rise in half per cent increments each year until it reaches 12 per cent of wages in 2025.
This obviously depends on what annual income you want to fund but if you want to be able to afford a comfortable retirement—which is an income of just over $48,000 a year for a single according to the ASFA Retirement Standard—then you need a balance of at least $500,000.
Investment option performance
The Balanced investment option, over the last 10 years to 31 December 2022, has delivered an average return of 8.76% each year for Accumulation accounts and 9.63% each year for Choice income accounts. AustralianSuper has a strong track record as a top performing super fund.
High-quality bonds and fixed-indexed annuities are often considered the safest investments with the highest returns. However, there are many different types of bond funds and annuities, each with risks and rewards. For example, government bonds are generally more stable than corporate bonds based on past performance.
Withdrawing some of your super early is a big financial decision that you shouldn't make lightly. It could leave you with less money for your retirement and impact your insurance within super. So before applying, stop and think about the potential consequences of accessing your superannuation early.
Adding more into super is not only a good way to invest your income, it also helps your retirement savings grow so that when you do retire, your money will still be worth something.
Super is generally held by your super fund. It may also be transferred to us as unclaimed super. If you've ever changed your name, address or job, your fund or the ATO may not have your current details, which can result in your super becoming lost or unclaimed. Super is your money.
Yes, provided you have reached the Age Pension age, you may be eligible for the Age Pension even if you have super savings.
You may be able to take your superannuation as a lump sum payment when you retire. This is usually tax-free from age 60.
Many people start using their super savings as soon as they retire and can access their super, but you don't have to. If you have other income sources or savings to live on, you could leave your savings in your super account. This means your money stays invested and could continue to benefit from investment returns.