Key takeaways
- If you're under 18 years old but work 30+ hours per week you're eligible to get paid super
- Choosing your super fund provides benefits such as greater control over your investments, potential for better returns and lower fees
- Choosing the right superannuation fund is a crucial step towards ensuring a comfortable retirement.
Compare super funds
Compare alternatives
We currently don't have a partnership for that product, but we have other similar offers to choose from (how we picked these ):
The information in this table is based on data provided by SuperRatings Pty Limited ABN 95 100 192 283, a Corporate Authorised Representative (CAR No.1309956) of Lonsec Research Pty Ltd ABN 11 151 658 561, Australian Financial Services Licence No. 421445. In limited instances, where data is not available from SuperRatings for a product, the data is provided directly by the superannuation fund.
*Past performance data and fee data is for the period ending September 2024
Why should you pick a super fund?
In Australia, choosing or not choosing a super fund is a significant financial decision. Most people are eligible for super, and their employers are required to contribute a minimum amount into a super fund.
You have the option to choose which super fund your employer pays your contributions to. If you don't choose, your employer will pay into either your existing super fund (stapled super fund) or their default super fund.
Choosing your super fund provides benefits like:
- Greater control
- Potential for better returns
- Lower fees
- The ability to tailor insurance and investments.
- Allows alignment with your ethical values.
In contrast, the default fund may not suit your goals or values. Therefore, this decision is essential for securing your retirement savings.
Who is eligible to get paid super?
Superannuation guarantee contributions are obligatory for nearly all Australian workers, regardless of their employment status.
You are eligible to receive super contributions, if you are:
- working full-time, part-time, or even casually
- under 18 years old but work 30+ hours per week
- receiving a super pension or annuity while actively working, including employees on a transition to retirement arrangement
- Temporary residents, such as backpackers, also qualify, as do company directors and family members working in a family business.
In essence, the vast majority of employees are entitled to super contributions, making it an essential component of your financial well-being.
How to compare the best super fund for under 18s
When you're just starting your journey in the workforce, securing your financial future may not be top of mind. However, choosing the right superannuation fund is a crucial step towards ensuring a comfortable retirement.
Let's walk you through the process of comparing super funds tailored to young individuals.
- Fees: Look for funds that have lower fees. Ideally 1% is something to consider.
- Performance: Examine the historical performance of the funds. Evaluate their returns over the past 1, 3, 5, and 10 years. Keep in mind that past performance doesn't guarantee future results, but it can provide insights into how well a fund has been managed.
- Customer service and accessibility: Assess the level of customer service and accessibility provided by the super funds. Consider factors like online account management, customer support, and user-friendly interfaces.
- Company reputation: Look at customer reviews and forums to find out other people's experiences with a super fund to get an idea of their reputation. Awards such as the Finder Awards can be a great place to get an idea of this, too.
- Consider personal goals: Your choice should align with your long-term financial goals. If you plan to retire early or have specific financial or sustainability objectives, choose a fund that supports those goals.
- Compare super fund rankings: Utilising resources like Finder, you can access detailed information and rankings of the best performing super funds, including their fees, performance, and features.
Want some more help choosing a super fund? Take a look at our top super fund picks for 2024.
Example case study: Alex finds a super fund
For instance, consider this example to understand it better — Alex, a 35-year-old marketing manager, had been diligently contributing to his superannuation fund over the years. He already had a balance of $30,000 in his super fund, but he noticed that the fund was charging high fees of 2.8%.
After conducting some research and considering his long-term financial goals, Alex decided to make a smart move. He switched to a different superannuation fund with significantly lower fees, at just 1.2%.
By making this strategic change, Alex is on track to boost his retirement savings substantially. At the age of 65, he will have an estimated $65,000 more in his super fund. Instead of ending up with $275,000, his super account balance is projected to grow to a more comfortable $340,000.
This decision to switch to a low-fee super fund has set Alex on a path to a financially secure retirement, ensuring he can enjoy his golden years with peace of mind and a more substantial nest egg.
Tips: To evaluate the best super fund for the under 18 age group, focus on three key factors:
- Low fees: Annual fees below 1.5% of your balance are generally considered to be on the low side.
- High returns: Look for high long-term performance returns over the past 7-10 years (10-year average returns over 7-8% p.a. are quite strong).
If you need a bit more help, our best super fund picks could be a good place to start.
What should I do if my employer has not paid super?
Recent research by Industry Super Australia has uncovered a concerning trend: Australian workers have missed out on a staggering $33 billion in unpaid superannuation over the past seven years. This equates to an annual loss of $4.7 billion in superannuation payments.
One key reason for this underpayment issue is the misalignment between superannuation payment frequencies and wage payment schedules. The law requires super contributions to be made at least quarterly, but most employees are paid on a more frequent basis (weekly, fortnightly, or monthly).
This mismatch makes it challenging for workers to detect underpayments, leading to a pressing call for government intervention to mandate super payments at the same frequency as wages. This change would ensure that workers receive their entitled superannuation contributions promptly and without complications.
Therefore it becomes even more important to check on your super contributions. If you are concerned you are not receiving your correct super payments or just want to make sure you're receiving what is owed to you, you check your payments by logging onto the ATO's online portal.
Finder survey: How familiar are Australians with the different types of super funds available?
Response | |
---|---|
I know some | 60.24% |
I know very little | 29.23% |
I know a lot | 10.53% |
Frequently asked questions
More guides on Finder
-
Compound growth: What is it and how does it grow your super?
Compound growth allows your super returns to be reinvested and generate their own returns, helping your balance grow much faster over time. Here's how it works.
-
What is superannuation?
Superannuation is the main way of saving for your retirement in Australia. Your superannuation is one big investment portfolio in your name that's managed for you by your super fund.
-
Conservative super funds
Conservative super funds are designed to protect your superannuation savings. These funds have more money invested in low-risk, defensive assets like cash, fixed interest and bonds and less money invested in shares.
-
High growth super funds — more risk, more growth
A high growth super fund invests more of your super into growth assets like shares, aiming for higher returns over the long term.
-
AustralianSuper vs Australian Ethical Super
Trying to decide between AustralianSuper and Australian Ethical Super? We've compared their fees, performance and investments to help you choose.
-
AustralianSuper vs QSuper
Trying to decide between AustralianSuper and QSuper? We've compared their fees, investment options, performance and extras side by side to help you choose.
-
AustralianSuper vs Australian Retirement Trust
Trying to decide between AustralianSuper and Sunsuper? We've compared their fees, investment options, performance and extras side by side to help you choose.
-
Salary sacrifice into your super
This guide explains how salary sacrificing into your super works, how to set it up and what to consider before going ahead.
-
Super co-contribution: What is the government co-contribution?
Find out if you're eligible for the government's co-contribution scheme, potentially receiving up to $500 for making personal after-tax contributions.
-
Super funds for temporary Australian residents
If you're a temporary resident working in Australia, you could be entitled to superannuation payments. Here's how it works.