How super works

Whether you’re a full-time, part-time or casual employee, your employer is generally obligated to pay a percentage of your salary into a superannuation account in your name. For self-employed Aussies, you can voluntarily add super into an account of your choice.

After your employer makes super contributions for you, the super fund invests the money. It will accumulate in your super account for the duration of your working life and is typically available for you to access when you reach preservation age. It’s essentially required savings designed to support you when you retire.

Types of super funds

Depending on your role and industry, there are a number of options to choose from, including:

  • Industry funds: you can only join these types of funds if you work in a specific industry, like hospitality or construction. 
  • Retail funds: open to everyone, with a lot of options to choose from.
  • Public sector funds: available to those working in government. 
  • Corporate funds: open to people working for a specific company. 
  • Self-managed super funds (SMSF): you make the investment decisions for the fund and you're responsible for complying with the super and tax laws.

Choosing a superannuation account 

Most people are eligible to choose their own super fund, but if you don’t specify your choice to your employer, your super will be paid into their nominated super fund. Make sure you ask your new employer for a Superannuation Standard Choice form if they haven’t given you one when you start working. If you’re exploring your options for which super fund to choose, here are few things to consider:

Types of investment

Super funds tend to invest in a mix of cash, fixed interest, property, and shares. Most super funds give you the option to choose where your money is invested. It’s a good idea to learn more about the different super investment options, opens in new window and how they may impact your future.

Investment performance

There’s no guarantee that a fund that’s performed well in the past will continue to do so in the future. That’s why comparing your fund’s performance to another fund over a period of five years will give you a rough idea of what direction you may go.

Insurance options

Most super funds include life insurance, and many add total and permanent disability insurance and/or income protection also known as salary continuance. When comparing different insurance options, keep an eye on the rates, amount of cover, and exclusions that may affect your situation.

Flexibility

Most super funds offer some flexibility with what you can do with your money. Whether it’s allowing you to move your money into a different super fund or providing you with the option to take part in the first home super saver scheme, flexibility in your super fund is important.

Fees

While all super funds charge fees, it’s good to see how much they charge and how often. Lower fees are preferable, but do funds that have higher fees offer something more? You may also be eligible for discounts through your employer, depending on their preferred provider.

Safety

When choosing a super fund, look for funds that prioritise strong passwords, multi-factor authentication (MFA), passkeys, and regularly update their systems. It is also worth investigating if the fund has been involved in any previous data breaches. Find out more about protecting yourself online on our frauds and scams security hub.

Managing multiple super accounts

You can see all the super funds that are under your name by logging into MyGov, opens in new window. If you do have multiple superannuation accounts across different funds, you might want to consider consolidating them into one account as it will make it easier to track your super balance and potentially pay fewer fees and charges.

Keeping track of your super

Every so often, you should check your payslips and your superannuation account transaction records to make sure you’re getting the contributions you’re legally entitled to.

It’s also worthwhile paying attention to how your super fund is performing and whether it’s still the right fund for you. The ATO has a great Super Comparison Tool, opens in new window which can show you how your super fund compares to other funds when it comes to fees and net returns.

Making voluntary contributions to grow your super

One way to grow your super can be by making extra payments yourself. Even small amounts add up over time and may save you money that you pay in tax. Don’t forget that once you make contributions to you super, you won’t be able to access this money until you retire. Find out more about boosting your super to set yourself up for the future.

Related products and services

Savings accounts

Whatever you're saving for, our savings accounts can help get you there sooner.

Transaction accounts

Access your money with our everyday bank accounts with no monthly account fee.

Other life moments

Money saving tips to reach your goals

Learn how to make your saving plans succeed with our simple money saving tips.

How do credit cards work?

A guide to help you decide if a credit card is right for you and how to apply for one if it is.

Creating a retirement financial plan

The key to enjoying retirement life is careful and early planning. Read our guide to how to create a retirement budget to secure your future.

Important information

The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, NAB recommends that you consider whether it is appropriate for your circumstances. NAB recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.