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Quiz results reveal some gaps in super knowledge: how did you fare?
13 November 2024
5 min read
Responses to our recent Super Quiz revealed many members have a good idea of what super is and how much of their money goes into it. But there are some gaps when it comes to the basics, such as when you can access it and how super is taxed. Read on for a run-down of the overall results and our cheat-sheet summary of ten top things to know about your super.
Many Australians know how much of their salary or wages their employer must pay in compulsory super contributions, according to your responses to our recent quiz on the basics of super.
But there’s a lot of confusion when it comes to critical information, such as the age at which you can access your super, how women fare on average within the super system, and how your super is taxed.
That said, two in five respondents scored 90% or higher (making them officially ‘super heroes’) in the quiz, which posed a range of questions about fundamental elements of the super system, including what super is, who is eligible to be paid super on their regular earnings, and who gets your super if you die.
A further two in five scored 70% or higher, while the remaining 20% of respondents potentially need a bit of help navigating some of the basics when it comes to super in our system.
ICYMI: How super-smart are you? If you missed our quiz on understanding your super, you can still test your super knowledge and take the 2-minute quiz here.
Spoiler alert: we’re about to reveal the answers in our cheat-sheet summary below, so if you haven’t done the quiz yet, read on at your peril.
Thankfully, pretty much everyone answered this correctly: Super is money put aside throughout your working life for you to live on when you retire from work.
The majority of quiz respondents (94%) correctly nominated 11.5% as the current proportion of your earnings that your employer must pay into super on your behalf, also known as the Superannuation Guarantee. This goes up to 12% on 1 July 2025.
Almost three in four respondents (73%) knew that the total taxable income a fund receives is taxed at up to 15% (including two-thirds of any realised capital gains). Did the additional detail give the correct answer away? We’ll never know.
However, despite a majority of correct responses, it’s clear there is some confusion around how super is taxed.
Interestingly, 14% of respondents believe the government gives you a ‘15% super saver discount’ off your usual marginal tax rate. Let’s be clear – we made that up.
A further 12% of respondents said there is no tax on super – instead, the government pays you 15% of your balance every year to encourage you to save. This is also not the case, although for those who selected this answer, we recognise it may have been more a case of wishful thinking than wrongful knowledge.
Happily, 96% of respondents were aware that full-time, part-time and casual employees must be paid the Superannuation Guarantee by their employer.
According to the Australian Government’s 2024 Status of Women Report Card, women generally retire with about 25% less super than men, as women are disadvantaged by a range of structural issues. These include that they earn less than men on average and are more likely to take time out of the workforce to have children or care for relatives.
Two in three quiz respondents selected the correct answer. While this may be somewhat confronting information – particularly if you happen to be a woman – it’s worth noting that women are also less likely than men to take the steps that will help set them up for financial success*. In particular, women are less likely to:
- make plans for their financial future
- set financial goals and create or stick to a budget
- invest money outside super
- read letters or emails from their super fund.
Knowledge is power, so have a look at some of the articles available on our website, learn more about super and investing specifically, and investigate the financial advice options that are available.
You can actually access your super from age 60 if you’ve retired from a job (and it’s tax-free). Only 44% of quiz respondents knew the answer to this question, with more than half believing you need to be older to access your super.
One in four believed super cannot be accessed until you turn 67 (which is the age you may be eligible to receive the Age Pension). A further one in four nominated age 65: this is when you can access your super without restrictions – even if you’re still working.
It’s worth noting it’s possible to access super under other circumstances: for instance, if you meet the release conditions related to experiencing financial hardship or if you’ve turned 60 and you want to keep working but you set up a transition to retirement pension.
One in two respondents nominated ‘around $600,000’ as the amount ASFA recommends, which is the correct answer. In fact, ASFA nominates $595,000 as the amount a single homeowner should have in their super when they retire to enjoy a comfortable retirement, rising to $690,000 for a couple.
Check out our retirement calculator to learn more about how much you might need.
Yes, there are a number of ways you can contribute extra to your super on a pre-tax and after-tax basis. Not surprisingly, nine in 10 respondents answered that correctly.
There are some limits to the amount you can contribute each year, also known as contribution caps, but making extra contributions can make a big difference to your super balance over time, as well as having the potential to reduce your tax.
Pre-tax, or concessional contributions are only taxed at 15% but you can only contribute up to $30,000 a year (including compulsory employer contributions). You may also be able to contribute more than this if you have not fully utilised your concessional cap in any of the previous five financial years.
After-tax, or non-concessional, contributions are capped at $120,000 a year. If you’re under age 75 any time during a year, you may be able to apply the 'bring-forward' rule. This may allow you to make up to three years' worth of non-concessional contributions at any point during a three-year period, depending on your total superannuation balance at the end of the previous financial year.
This is a bit of a trick question (though nine in 10 of you chose the correct answer, so maybe it wasn’t as tricky as we thought): Depending on the rules of your fund, your super can be paid directly to your beneficiaries or to the executor of your estate, to be paid in accordance with your will (or the laws of intestacy if you die without a will).
However, a common misconception is that super is automatically considered part of someone’s estate – in fact, it’s important to nominate who you want your super to go to. This is because super is ‘held in trust’ for you by the trustee of your super fund. Death benefit nominations work like a will, giving you a level of control over what happens to your super balance when you’re gone. If you don’t complete a benefit nomination, your super fund may decide who your super is passed on to.
Happily, 96% of you correctly selected all the options provided, which included:
check out the website of your super fund,
visit ASIC’s Moneysmart website for more information and calculators on super, and
contact a financial adviser for personal, ongoing financial advice.
To learn more about super and your personal circumstances, calculate how much super you might need for the lifestyle you want after you stop working or find out if you’re on track by comparing your balance to the average balance for someone your age.
What’s next?
* Source: CFS commissioned survey of 2,966 Australians and research, completed in March 2023.
^ ASFA Retirement Standard, June 2024.
Avanteos Investments Limited ABN 20 096 259 979, AFSL 245531 (AIL) is the trustee of the Colonial First State FirstChoice Superannuation Trust ABN 26 458 298 557 and issuer of FirstChoice range of super and pension products. This document may include general advice but does not consider your individual objectives, financial situation, needs or tax circumstances. You can find the Target Market Determinations (TMD) for our financial products at www.cfs.com.au/tmd, which include a description of who a financial product might suit. You should read the relevant Product Disclosure Statement (PDS) and Financial Services Guide (FSG) carefully, assess whether the information is appropriate for you, and consider talking to a financial adviser before making an investment decision. You can get the PDS and FSG at www.cfs.com.au or by calling us on 13 13 36.