What is superannuation

What is super? 

In simple terms, superannuation or ‘super’ for short, is money set aside during your working life to support you in retirement. It’s deposited into a fund, like AMP, where it’s invested to earn interest and grow over time.

Facts about super: 

  • Once you’re earning more than $450 per month, in most cases, your employer is required to contribute 9.5% of your before-tax income into a super fund - this payment is known as a super guarantee (SG) contribution. 
  • You can also add to your super through personal contributions. These can either be before-tax or after-tax, but there are limits to the amount you can contribute.
  • An annual cap of $25,000 applies to before-tax contributions to your super, which also includes the SG contributions made by your employer.
  • An annual cap also applies to after-tax contributions, but the cap varies according to your age and circumstances.
  • Your super balance grows due to both contributions and also how your super is invested. Most funds allow you to choose how your super is invested, if your super is with AMP you can do this by logging into My AMP or speak to your financial adviser for help choosing an investment option.
  • Your super account may also include a range of life insurance options.
  • Fees for the management of your super account are deducted from your account balance, as are life insurance premiums (if you have insurance through your super).
  • You usually can’t access your super money until after you’ve retired and have reached your preservation age.

Get to know super better by watching our video

  • How could super help you save for retirement?
  • Should you make a choice about where your super goes?
  • How can you compare different funds?

Choosing a super fund 

Check if you can choose your fund 

Most employees can choose their own super fund, to find out if this applies to you check with your employer or the Australian Taxation Office (ATO). If you can choose your fund, you’ll typically have a choice between your employer’s fund or your own. This could be a fund you joined with a previous employer or a self-managed super fund (SMSF).

If you’re a contractor, you may still be entitled to super from your employer and may be able to choose your fund - the ATO can help you determine this.

If you’re self-employed, you can choose whether or not you pay yourself super or opt for a different way to save for your retirement.

How to compare super funds 

There are a few things to consider when choosing a super fund. These include the fees charged, investment options, insurance cover available and its cost, and fund performance.

AMP has been helping our customers take control of their financial future for 160 years. Whether you’re after simple super or investments you can be heavily involved with, there’s an AMP super product for you.

To learn more about choosing a fund, visit our choosing your super fund online learning module.

What happens if you don’t choose a fund 

If you don’t choose a fund, your super guarantee payments will be made into your employer’s default fund. For more information, visit our choosing your super fund online learning module.

How to apply for a super fund

If you’re eligible to choose your own super fund, your employer will give you a standard choice form when you start working for them. The form sets out your options for choosing a super fund.

You can also request a standard choice form from your employer and change super funds during the course of your employment, although you can only request your employer change your fund once a year.

Learn more about our range of AMP super funds, to find one that’s suitable depending on your needs and financial goals.

  • If you’d like a super fund that can evolve with you throughout your life, AMP Flexible Super is designed for either self-employed, casual, part-time or full-time employees. It’s easy to take from job to job, offers a wide range of investments, insurance options and competitive fees, and can be managed simply online. Join now.

For more help

If you’d like more information about managing your super, including finding lost super or consolidating your super, check out our guide on how to take control of your super.

And for more help, contact your financial adviser. If you don’t have an adviser, you can use our online tool to find one in your local area or call us on 131 267.

For more useful info on super, you might like to check out the following:

Want to speak to a financial adviser?

Ready to take control of your super?

Find out more

Apply online for AMP Flexible Super

Manage your AMP super

Find out more

Important information

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 Any advice in this page is general in nature and is provided by AMP Life Limited ABN 84 079 300 379. The advice does not take into account your personal objectives, financial situation or needs. Therefore, before acting on this advice, you should consider the appropriateness of this advice having regard to those matters Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you.

AMP Flexible Super is issued by AMP Superannuation Limited ABN 31 008 414 104 and is a part of the AMP Retirement Trust fund ABN 73 310 248 809.

All information on this website is subject to change without notice. Although the information in this article is from sources considered reliable, AMP does not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any financial decisions. Except where liability under any statute cannot be excluded, AMP does not accept any liability for any resulting loss or damage of the reader or any other person.