Learn the jargon of superannuation! Here are a few terms that are important for you to know.
Accumulation funds - money is invested and the final benefit depends on the total contributions, plus earnings of the fund.
Annuity - like a pension. You receive regular periodic payments for either fixed amount of time or until you die.
Benefit - the money paid to you out of the superannuation fund or held on your behalf within the fund.
Contribution - the money paid into the superannuation fund by either you or your employer.
Defined benefit funds - the final benefit is paid on the basis of a specific formula, so the employer carries the risk if the growth of the fund does not cover the benefit.
Lump sum - money received in a single payment.
Preserved - money that you cannot withdraw from your fund until retirement or certain other events, e.g. reaching a certain age and leaving employment either temporarily or permanently. This includes money paid by your employer, interest earned on that money or contributions paid by a self-employed person which have been claimed as a tax deduction and any un-deducted contributions you make after 1 July, 1999.
Rollover - transferring money from one fund to another.