Superannuation Funds

Superannuation is an investment that is designed to provide money for your retirement.  When starting work most people begin their superannuation as their employer has to pay contributions.  You have the ability to top up the funds with your own money.   If you are self-employed they you have the option to choose whether or not you should have superannuation.

By compounding your superannuation investment over many years it can grow to a sizeable asset over your working life.  Over these years your superannuation work hard by being invested in certain areas and your money is usually taxed less than other forms of investment.   Your superannuation fund may also offer like insurance cover and disability insurance.

Types of Superannuation Funds

There are five main types of superannuation funds:

Retail Funds:   Open to the general public and run by financial institutions

Industry Funds:  Open to people in a particular industry or under a particular industrial award.   Some industry funds are open to the general public.

Corporate Funds:  Open to people working for a particular employer or corporation.  Many of the costs of operating the fund typiucally are covered by the employer.  Corporate funds generally are not open to the public.

Public Sector Funds: open to government employees, or are schemes established by law.

Self managed superannuation funds Must have fewer than 5 members.  All members must be trustess of the fund and responsible for its management.

Superannuation contributions may also be deposited into retirement savings accounts.  These are special accounts offered by banks, building societies, credit unions, life insurance companies and certain finanancial institutions.


Within these there are also two basic kinds of superannuation fund structures:

Accumulation Funds – where youre retirement benefit depends upon how much you accumulate over your working life, which will be the money paid in plus investment earnings less expenses.

Defined Benefit Funds – The value of your retirement benefit is defined by a set formula which may for example take into account your length of service and age at retirement.  Defined benefit funds are common in the public sector.  They are alos used by some large companies.


For further details visit:


Australian Securities and Investment Commission

Australian Taxation Office

National Information Centre on Retirement Investments

Association of Superannuation Funds of Australia

Simplified Superannuation – Govt

Self Managed Super Funds Strategies

Newcastle Financial Planners

Self Managed Superannuation Funds