Education
Types of Superannuation Personal superRetail super funds: This type of fund is open to the public and is offered by a fund manager. The fund manager must provide a product disclosure statement, which sets out investment choices and fees. Retirement savings accounts: This type of account is offered by most financial institutions and generally invests in low-risk assets, such as cash and fixed interest. Retirement savings accounts are a low-maintenance account and can be used by employers to meet employee superannuation commitments. They also may be used by individuals for depositing their personal superannuation contributions. Industry funds: Industry funds usually are made available to people who work in a specific industry, though some funds allow anyone to join. Industry funds typically have lower fees but also may have limited investment options. Employer superDefined benefit funds: This type of fund is used by employers for employees, but they are becoming less common because they are more expensive to run. In most cases, a defined benefit is a pension, a lump sum or a combination of both. Defined-benefit super funds usually have higher benefits accumulated than that of a normal accumulation super fund, so members often choose to remain and rarely rollover into other types of funds. Public sector funds: This type of fund is similar to an employer fund except that members are government employees or work for a government-owned enterprise or authority. Public sector funds generally have low fees and members often receive higher superannuation guarantee contributions than the standard 9%. Superannuation guarantee: Was introduced by the Australian Government to help Australians provide for their retirement. Many people dont realise that the minimum 9% employer contribution to superannuation is unlikely to be enough to support a comfortable retirement. Super choice: Enables eligible employees to choose the superannuation fund that their employer contributions are paid into. Super choice helps you to have better control of your superannuation. Self-managed super funds
These funds must have fewer than five members and are usually managed by self-employed people or those who want to manage their own super. The main advantage of a do-it-yourself fund is that you have greater control over how your funds are invested. Legal and accounting fees mean it is generally more expensive to manage a do-it-yourself fund, so as a general rule your fund balance should be $200,000 before you consider this option. If you are interested in starting a self managed superannuation fund, more information is available for you to download below
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