Know where your money goes

2 August 2024

Your super is money that’s saved during your working life, to help support you in retirement. Your employer usually pays a percentage of your salary into your super account regularly. You might even make some extra super contributions along the way to top it up. But where does that money go once it’s in your super account?

Some people think of super as another bank account you get access to when you hit retirement age. However, with a standard bank account, you usually only get out what you put in (plus a little interest). Whereas with super, your fund usually invests your money in a range of asset classes (such as listed shares, property, infrastructure and fixed interest). These investments aim to grow your savings, along with your regular super contributions, to help you achieve the best financial position in retirement.

How money is added to your super account

On top of your employer’s contributions, you may also be able to add money to your super account.

Employer super contributions

Under the superannuation guarantee, employers are generally required by law to add a percentage of your salary to your super account. You should see the amount set aside to be paid into your super on your payslip from your employer. It can be worthwhile logging in to your super account and checking that the amount on your payslip matches the amount added to your super.

Each employer pays these super contributions at different times, so you could see it in your super account fortnightly, monthly or even quarterly. 

Personal super contributions

On top of any super contributions from your employer, there are other ways you can add to your super. You may be eligible to salary sacrifice – adding some of your before-tax salary to your super through an arrangement with your employer. You may also be able to add to your super from your after-tax income – your take home pay.

Before adding to your super, consider your financial circumstances, contribution caps that may apply, and tax issues. Consider getting financial advice before deciding what’s right for you.

LEARN MORE: GROWING YOUR SUPER

Your super fund invests the money added to your super

The money in your super doesn’t just sit in your account waiting for you to retire. Your fund can invest in various assets with the aim of growing your balance.

At AustralianSuper, members can choose how their money is invested. If you don’t make a choice, your super is invested in the Balanced option, our MySuper default option.

AustralianSuper offers a range of investment options that have the potential to grow your super balance over the long term. This balance can then be used to support your retirement income.

Investment markets move in cycles, so your super balance can fluctuate from time to time. Some years you may even see a negative annual investment return. For example, in AustralianSuper’s Balanced option, where the majority of members are invested, the Fund estimates there could be about 5 negative annual returns over any 20-year period. However, over the long term, investing in a diversified mix of assets, across many investment markets, has provided positive returns for investors¹.

AustralianSuper is a long-term investor. The Fund invests in assets that aim to deliver long-term returns to members over the course of their working life, and in retirement. We look through short-term market events to invest in assets that have growth potential over many years. In the Balanced option, for example, we invest in listed shares that have higher risk in the short-term, but have historically provided strong long-term returns¹.

How AustralianSuper invests to help grow members’ balances

AustralianSuper’s priority is to help all members achieve their best financial position in retirement. To do this we focus on generating strong long-term returns. This means thinking about investments over decades, not just years. For a 20-year old member, their super could be invested for more than 40 years and a member in, or close to, retirement could still be invested for another 20 years.

Each investment option has an investment objective which states the return objective or benchmark. Our team of experts invest your super in assets such as:

• Property and infrastructure – for example, airports, roads, logistics facilities and shopping centres
• Shares in companies such as Microsoft and Amazon internationally, and CBA and Woolworths in Australia.

AustralianSuper employs investment professionals who actively manage investments every day. Their job is to select assets to invest in that have the potential to outperform the market and deliver the best possible returns. The investment team selects external managers and directly manages assets in the portfolio. Our internal investment capability enables us to invest at a lower cost and gain access to high quality investment opportunities.  

EXPLORE AUSTRALIANSUPER’S INVESTMENT OPTIONS

2 tips to help stay on top of your super

1. Check your balance regularly

You can see your super balance on your annual statement. You can also log into your super account online, or on the mobile app.

LEARN MORE ABOUT: THE AUSTRALIANSUPER APP

2. Review your insurance

In case of serious illness, disability or death, you want to know you, your partner, or family is financially secure. A simple review of your insurance can give you peace of mind that you and your loved ones will be taken care of. Super funds, such as AustralianSuper, generally offer basic cover when you sign up². However, it’s important to make sure you have the right amount of cover for your needs – which might change over time.

DISCOVER MORE ABOUT: INSURANCE THROUGH SUPER

Comparing super funds

When considering which super fund is right for you, it’s important to know how the fund performs and any fees and costs charged.

LEARN MORE ABOUT: MEASURING SUPER PERFORMANCE

COMPARE SUPER FUNDS

Super fees and costs

All super funds charge fees and costs to operate. However, some charge higher fees than others and this can eat away your balance. So it’s important to understand any costs, the services you receive, and how they compare to other funds.

Below are the super account fees you might see on your annual statement if you chose AustralianSuper as your fund.

Administration fees and costs

All AustralianSuper members pay an admin fee. This admin fee pays the non-investment related costs of running the Fund including the administration of your account, general advice and education resources, the mobile app, the member portal giving you access to investment option switching, along with help from our contact centre over the phone, via email or chat.  

Insurance fees

These fees are known as your insurance premiums. They’re taken out of your super balance automatically for eligible members. The amount will depend on how much cover you have, your age, and the type of work you do. You can apply to increase, reduce or cancel your cover as you need. This will change the amount you pay for your insurance².

Investment fees and costs

These fees are charged to cover the cost of your fund managing your investments. They include:

• Investment fees and costs
• Performance fees
• Transaction costs.

READ MORE ABOUT: AUSTRALIANSUPER FEES AND COSTS