Maximising your Super

Are you making the most of your super?

For many Australians, the two biggest assets we acquire in our lifetime are our home and our superannuation. That’s why it is important to know if you are making the most of your superannuation savings.

Understand your scheme

There are two main types of superannuation schemes operating in Australia. The first is an accumulation fund and the second is called a defined benefit scheme.

An accumulation style of scheme operates very much like your bank account. You have your own superannuation account into which you make pre tax and/or after tax contributions.Your employer may also be making Superannuation Guarantee contributions (SGC) into this account. The fund earns interest, charges are deducted and at the end of the day the balance of that account is yours.

A defined benefit scheme is different. In this type of scheme, the final benefit which could be paid as a lump sum and/or a pension is calculated using a formula. Each scheme tends to have its own unique formula, which may consider issues such as the employer’s and employee’s contributions, years of service and final salary.

Determining which type of scheme applies to your superannuation is very important. If you are a member of a defined benefit scheme, you need to have an understanding of how your benefit will be calculated to ensure you are making the most of your superannuation.

Want more information about your defined benefit scheme?

Your scheme’s trustee is the best source of information regarding how your benefit is calculated. The following links will take you to the website of the NSW and Commonwealth public sector defined benefit schemes:

NSW Public Sector Schemes

State Authorities Superannuation Scheme (SASS)
State Superannuation Scheme (SSS)
Police Superannuation Scheme (Police)

Commonwealth Schemes

Public Sector Superannuation Scheme (PSS)
Commonwealth Superannuation Scheme (CSS)