What is superannuation fund

Many times employees ignore this retirement benefit. In fact, many, may not even know that they have been provided with superannuation benefit as the contribution to the benefit does not go out of their pocket. Some may also be unaware of the superannuation amount they are entitled to at retirement. Given this, it becomes imperative to understand what the superannuation benefit is in order to help individuals have better financial planning and plan retirement efficiently.

A superannuation benefit is a retirement benefit offered by an employer to its working class. Superannuation is an organisational pension program created by a company for the benefit of its employees. It is also referred to as a company pension plan. Superannuation benefit is classified into the following in India based on the investment and benefit it offers:.

It may also be noted that employee may also voluntarily contribute an additional amount to fund in case of defined contribution plans. In case the employee changes his job, he has an option to transfer the superannuation amount to a new employer. In case the new employer does not have a superannuation scheme, the employee may either choose to withdraw the amount or retain the amount in the fund till retirement and withdraw as discussed above.

What is superannuation? How does it work? See when you can access your super here: When can I access my super? Reset How much super will you need? Retirement calculator. Plan your retirement Plan now. Compulsory super How does it work? Find out more about managing your super. Most people who work in Australia are entitled to have their super paid by their employer.

For more information, please refer to the ATO. If you're a sole trader or in a partnership, you don't have to make Super Guarantee SG contributions for yourself. There are also great government benefits to help you save for your retirement.

Find out more here. Your employer is required to pay your SG contributions to a super fund most of the time, your choice of fund at least four times a year, by the quarterly due dates. They have to use Ordinary Time OT earnings to determine the amount of your contribution. All employers must have a nominated default superannuation fund available for their employees. At the time you start a new job, your employer will give you the option to either select their default fund or the fund of your choice.

To choose a superannuation fund, you simply complete a standard choice form, which is issued by the ATO. How you invest your money is your choice. Most super funds provide a number of options including a range of asset classes that offer different rates of risk and growth. You can choose how you'd like your money invested, if you want to. To find out more about investing choices, see our investment options page.

You can also transfer your money to a different investment option within your fund, or to another super fund at any time. But take note of any fees when doing this. See below for more information on how your money is invested. You can also choose or change funds at any time - but your employer is only obliged to act on your choice once a year.

Be sure to keep an eye on your superannuation payments and balance to ensure your money is working as hard as it can for your retirement. It only takes a few minutes. Find out more. Send us your super enquiry today. We'll respond within 1 business day. This information is of a general nature only and does not take into account your personal financial situation, needs or objectives.

Please consider your own personal financial circumstances and consider the Product Disclosure Statement , Product Guide , Insurance Guide and Financial Services Guide before taking any action in relation to your superannuation, making a contribution, or asking your employer to contribute to Virgin Money Super for you. For further information about the insurance options refer to the Insurance Guide.

The Superannuation Fees described on the Fees page apply from 12 December Other fees and costs may apply such as insurance fees. These are retained by the fund and are not paid to Virgin Money or the Trustee.

Before you rollover or consolidate your superannuation, you should check to see if insurance or other benefits will be impacted or lost. Some funds may also charge withdrawal or exit fees. You should consider the relevant Product Disclosure Statement. Please note this information does not constitute personal financial product advice, and you may wish to consult your financial adviser before making a decision about whether Virgin Money Super fits your objectives, financial situation and needs.

If you are considering making voluntary contributions into your Virgin Money Super account, you should consider your personal circumstances, the impact of such contributions to your contribution caps, as well as associated taxation issues before making any decision on making voluntary contributions.

Concessional tax rates do not apply on contributions which exceed government contribution limits. It is very important to note that superannuation is generally a long term investment. Past investment performance is not a reliable indicator of future performance and should never be the sole factor considered when selecting a fund. For more information about Virgin Money Super, please refer to the PDS which is available free of charge on our website or by calling the Customer Care team on To earn and redeem Velocity Points, you must be a Velocity member.

Velocity is not responsible for the material in this document and does not hold an AFSL. Velocity membership and Points earn and redemption are subject to the Member Terms and Conditions, available at www. The information above is intended as a guide only.