Superannuation, or 'super', is money put aside by your employer over your working life for you to live on when you retire from work.
If you work for a company or organisation, your employer is required by law to pay money into a super account in your name, which is then managed by a super fund. Currently your employer must contribute 10% of your income.
The government has instated a change to the industry, now aiming to shrink it from 100 super funds to a meagre 5. As a result, war has broken out amongst the super funds. You may have noticed a major surge in the ads for these firms, and for good reason. With the shrinking of the industry, it is a matter of ‘eat’ or ‘be eaten’. Super funds are now having to become more sophisticated and create stronger investment strategies to attract more members and ultimately give them better returns. As well as this, super funds are taking over other funds to survive the industry cut and hopefully achieve supremacy in the Superannuation Industry.
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