How super works
Superannuation (super) is a mandatory system in which a portion of your income is put aside to save for your retirement. Super is designed so you accumulate savings while you’re working and have flexible income options as you transition to retirement and through retirement itself.
While you're working
During your working life, your employer will make mandatory super contributions (known as Super Guarantee Contributions) to your superannuation. These contributions, and any voluntary contributions you may make, are invested in your NGS Accumulation account.
You can choose how your super is invested, or you can leave it in the default investment option. You can access your super once you meet a 'condition of release'. Most conditions of release occur around the time of your retirement.
For many, super will be the main source of income in retirement. So, it's a great idea to get your super savings on track as early as possible.
To encourage you to invest in your retirement throughout your working life, super has been set up as a tax-effective environment. Investment earnings within your super account are taxed up to 15% and tax on your super contributions may be lower than your income tax rate.
Transition to retirement
Thinking about slowing your work life down but not quite ready to retire? Or looking for a tax-effective strategy to boost your retirement savings before you retire? Once you've reached your preservation age (60 if you were born after 30 June 1964, but lower if you were born earlier) an NGS Transition to retirement account can help.
A Transition to retirement account allows you to access part of your super as income payments. Many people use this option to reduce their working hours by supplementing their work income using super.
You can also use a Transition to retirement account to tax-effectively build up existing super in the years leading up to retirement.
In retirement
For many people, adjusting to life in retirement is much easier to manage if they continue to receive a steady income. Once you’re eligible, you can set up a regular income stream from your super by opening an Income account and receive:
- flexible payment options — choose how often and how much you'd like your payments to be.
- a wide range of investment options, tax-free income payments and investment earnings (unless you’re aged under 60)
Take our super quiz
6 ways to keep your super on track
It’s important to stay on top of your super now so you’re set up for your future. Think of it like a garden: put the care and consideration in now so that your super savings will grow and flourish. Don’t worry if you’re not sure what to do next – we’ve made it easy by providing all the tools you need just below.
Update contact details
Check your insurance cover
Nominate who gets your super
Consolidate your super
Make after-tax contributions
Start salary sacrificing
