Superannuation 101

Introduction

Are these statements true or false?

  1. There’s no need to worry about superannuation until you’re old and about to retire.
  2. You have to be over 18 to have superannuation contributions paid by your employer.

If you think that they’re false, think again!

It might seem like a long way off, but the more superannuation you have, the more comfortable your retirement will be. You need to start early in order to maximise the amount of superannuation you have available to you in retirement! 

Also, as soon as you get your first job (and depending on how many hours per week you work if you’re under 18), your employer will be paying into your superannuation fund. So you need to start thinking about it now! 

Why is this important?

Your super is your money!

Superannuation can provide a comfortable income for your retirement. The money contributed to superannuation is invested so that it earns interest and grows throughout your working life.

Control and protect this valuable investment by learning how it works and how to manage it.  

Task

Understanding superannuation and taking steps to maximise the amount of superannuation you have available to you in retirement is something EVERYONE can, and should, do.

Your job in this WebQuest is to investigate what superannuation is and how it works. You will also examine a range of superannuation funds available to you in Australia and make some decisions on what type of superannuation fund best suits your needs.   

Process

Before you begin

Most people know superannuation exists, but very few understand what it is and how it actually works.

Did you know that if you’re an employee and 18 years old or over, or if you are under 18 and work more than 30 hours in a week, regardless of how much you earn, your employer MUST pay the super guarantee (12% at 1 July 2025) IN ADDITION to your wages?

To learn a little about the basics of superannuation before you get started on the tasks for this WebQuest watch this short video.

Task 1 – Superannuation essentials

Download and complete Task 1 worksheet – Understanding and managing super. Save a copy of your completed worksheet.

(Source:https://financialbasics.org.au/wp-content/uploads/2024/10/8_SUPERANNUATION_101_task1worksheet_understand_manage_super.docx) 
Evaluation

SUBMISSION

Submit your response to Task 1 to your teacher.

Your teacher will review your work and provide feedback.    

Conclusion

Because your superannuation helps ‘current you’ look after ‘future you’, you need to take very good care of it. The aim is to finish your working life by being ready to begin your best possible retired life.

Start taking steps now to maximise the balance in your superannuation fund.

  • Take an active role in deciding where and how your superannuation contributions are being invested.
  • Regularly review your superannuation fund to make sure that fees remain low and performance compares favourably with other funds. 
  • Always check that your employer contributes the correct amount to your superannuation fund.
  • Avoid excess fees by combining accounts.
  • Consider contributing extra funds to boost your superannuation account. Get advice on how you can do this without reducing your net income.

Want to learn more about superannuation? Ask your teacher to download the superannuation resources from www.financialbasics.org.au & sign you up for the ESSI Money Game.

Credits

This work is adapted by the content owners from the Financial Basics Foundation Operation Financial Literacy (OFL) resource Module 9: Financial planning - take charge of your future. Check out the original resource for more teaching and learning activities in this content area.                                               

Financial Basics Foundation resources are free for all Australian educators. You can access these resources here.                                                                                                                              

 

Other

Financial Basics Foundation Contact information

Connect with Financial Basics Foundation for more great resources and ideas, and become part of the #FinLit community!

YouTube: https://www.youtube.com/@financialbasics

Facebook: https://www.facebook.com/financialbasicsfoundation     

Twitter: @Financial_Basic

Email: info@financialbasics.org.au

URL: www.financialbasics.org.au    

Teacher Page

Why should your students do this WebQuest? Many of your senior students will have part-time jobs and may already be receiving superannuation contributions from their employers. Learning about superannuation and how it works puts them in a position to start taking control of their financial futures by playing an active role in managing their superannuation. This WebQuest has been updated to reflect the change in the superannuation guarantee rate from 11% to 11.5% on the 1st of July, 2024.

WebQuest Goal: This investigation into superannuation aims to deliver a basic understanding of the concept of superannuation and the significance of taking some responsibility in managing it.

Time required to complete this WebQuest: Approximately 80 minutes.

Solution: A solution for the Task 1 –  Understanding and managing super worksheet is available through the Financial Basics Foundation member portal. Login to your account or sign up here if you’re not already a member. Once you’ve logged in, check out all of our other WebQuests and Resources by clicking on the Teacher’s Toolkit menu.                                                                                                             

Suggestions from FBF:

  • Students complete the Task 1 –  Understanding and managing super worksheet electronically by typing their responses in the text entry fields. PDF software is required for this option. Alternatively, students can print and complete with handwritten responses.
  • The content and concepts contained within this WebQuest make it most suitable for senior students.
  • Tasks in this WebQuest have been designed for students to complete individually.
  • Register your students for Financial Basics Foundation’s ESSI Money Game to help them experience superannuation in a real-life gamified personal finance educational simulation. 
  • The commercially produced video What is Superannuation? https://youtu.be/Lkfs-iPCLH8?si=FOflEnm2oFqYeNr- (3:33) provides a thorough overview of Superannuation, and you may find it helpful for your reference. Financial Basics Foundation has no arrangement, commercial or otherwise, with the producer of this video.

Standards

The content and tasks in this WebQuest have been mapped to the following Australian Curriculum elements:

  • General Capabilities – Critical and creative thinking: Imagine, generate, develop and critically evaluate ideas (Technologies)
  • Economics and Business (K & U) - Elaboration: discussing the ways people who have retired from employment earn an income (for example, age pension, superannuation and private savings) (ACHEK020 & ACHASSK202). Elaboration: identifying employer responsibilities to workers and the government (for example, superannuation, paid parental leave, income tax, company tax or the Goods and Services Tax (GST))  (ACHEK042)