Understand your super
What superannuation is, how it works, and how it benefits you
We’re here to make superannuation easy to understand, so that you can make informed decisions about your money.
In simple terms: superannuation (known as ‘super’) is a way to save money for your future. Each time your employer pays you, some of that money goes directly into your super account.
That money is then invested by your super fund so that it grows over time. When you retire, you can then access this money.
- Money paid into your super is invested. The investment grows over the long term, and you can then access it when you retire.
- Your employer must pay money into your super account if you are aged 18 or over, or if you are aged under 18 and work more than 30 hours per week.
- Your employer must pay at least 10.5% of your salary before-tax into your super account.
- For many people, putting money into super offers tax advantages because it is only taxed at 15%.
- If you change jobs, your new employer needs to know your super account details. Unless you open a new super account, your employer will need to pay contributions to your existing super account.
- Each super account you hold incurs fees and insurance costs. This is one reason why many people choose to keep all their super savings in one fund – it avoids paying multiple fees and insurance costs. (This is often called ‘consolidating’ your super.)
- Financial investments of all kinds can be affected by short-term changes in the economy, which means they can go up or down. Super is a long-term investment which is intended to grow over many years.
When you or your employer pay money into your super account, that money is then invested into assets. Your selected investment option dictates the types of assets that your money is invested in. (With Crescent Wealth, all investment options are Shariah-compliant.)
When those assets increase in value and produce income, these investment returns increase your super balance.
The investment returns you receive each year are then reinvested back into assets. Each year, you can get a return on the original amount in your balance (this includes any new contributions made that year), as well as on the investment returns of previous years.
Economic forces vary from one year to another, and no two years are exactly alike. This means your super returns will vary from year to year. Some years the investment returns are lower, and some are higher.
While your employer must pay at least 10.5% of your salary before-tax into your super account, you can also make additional contributions to boost your retirement savings. You can do this in a few different ways:
- Voluntary contributions (after tax)
- Salary sacrifice (before tax)
- Government co-contributions (after tax), if eligible
- Spouse contributions (after tax)
We explain these in more detail on our Grow your super web page.
Importantly, the Australian government has rules around how much you can contribute to your superannuation, depending on your individual circumstances. If you contribute too much, you may have to pay extra tax. Read more about additional contributions here.
Like most super funds, Crescent Wealth offers a range of investment options for you to choose from. These give you control over how your super is invested, depending on your investment risk tolerance, your age, and your values.
Our investment options provide differing levels of access to our unique and pioneering Islamic investment tools. You can pick one investment option or spread your super across several options. Whatever you decide, you can rest assured that, with Crescent Wealth, your super is invested in line with your Islamic values.
Crescent super funds are designed to grow over time so that you have money when you retire. You can access your super savings:
- When you turn 65 years old (even if you’re still working and haven’t retired), or
- When you reach your ‘preservation age’ (which is calculated based on your date of birth) or
- Under the ‘transition to retirement’ rules, while you are still working.
Early access to super is possible in certain circumstances (e.g. severe financial hardship, compassionate grounds). This is called an ‘early release of super’ and is possible when specific eligibility requirements are met.
If you’re considering accessing your super, we recommend discussing this with a licensed financial adviser so you understand the pros and cons. Depending on your circumstances,
Ask us anything
At Crescent Wealth, we’re happy to answer any questions you have about super and our investment products. We believe there should be no compromise between your ethics and strong financial returns.
So, we’re open and transparent about how and where we invest your super, and how our funds perform for members. We can give you the facts, freedom, and flexibility to make an informed decision about your super. Feel free to contact us any time.