Understanding how super works isn’t as difficult as you might think. And after all, super is your money to enjoy in retirement so it pays to get to know it better.

For most of us, our super grows from the compulsory contributions employers are obliged to make on our behalf. However, we can also contribute to our own super and there are often tax incentives for doing so.

Money goes in

You, your employer and your spouse can contribute money into your super account. You can also transfer super from other funds into your LGIAsuper account to keep all of your super in the one place. This can help you keep track of your super and save on fees.

If you’re an LGIAsuper member with a defined benefit your account works differently.

Some money comes out

All super funds charge fees to cover the costs of managing your super. Like most funds, LGIAsuper deducts administration and investment management fees from your account to look after and invest your super. You can be confident LGIAsuper’s fees are among the lowest in the industry and only cover the costs of running the fund.

If you have insurance cover your premiums also come out of your account.

Income in retirement

When you permanently retire after reaching your preservation age (which is between 55 and 60 depending on when you were born) you can access the super you’ve built up over your working life. Super may not be your only source of income in retirement. You could have investments outside of super and/or be eligible for the Australian Government’s Age Pension.

Tax benefits

Although the Australian Government takes tax from some super contributions and investment earnings, super is taxed at a much lower rate than other types of investments.

What’s more, after the age of 60, any money you withdraw from your super (as lump sums or regular income) is tax-free. Before then, it’s taxed in different ways depending on when and how you take it. Read more about superannuation tax.

Related links and downloads

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Flexible options to suit you

LGIAsuper offers a range of flexible accounts and features to help you manage all aspects of your super.

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Grow your super

The more money you put into your super while you’re working, the more you’ll have to enjoy in retirement.

Learn more