Superannuation and retirement quiz

Superannuation iconTake this quiz to see how savvy you are with your super. Test your knowledge.

There are ten questions. Select an answer to receive feedback. Your score is calculated at the end. 

Clock Estimated time: 5 mins

moneybags

Sue is 30 years old and has just changed jobs. Her new employer offers her a MySuper account as an option for her employer super. The MySuper account will charge her 1% less each year in fees and has similar returns and other features to her old account.

Sue earns $50,000 a year and already has $40,000 in super. Should she move her super into the MySuper account?

  • No, an extra 1% in fees hardly matters over the long term
  • Yes, an extra 1% in fees can add up to a lot over the long term

Correct. A 1% difference in fees could mean a 20% difference in what Sue has to retire on in 35 years.
 
Before switching funds, Sue should double-check whether her old account has other benefits that outweigh the extra cost.

Find out more about super fees  or use our super calculator.

Incorrect. A 1% difference in fees could mean a 20% difference in what Sue has to retire on in 35 years.
 
Before switching funds, Sue should double-check whether her old account has other benefits that outweigh the extra cost.

Find out more about super fees or use our super calculator.

piggybank on coinsAssuming you own your own home by the time you retire, roughly how much of your current income would you need to live the same lifestyle as you do now after retirement?

  • About 47%
  • About 67%
  • About 87%

That's right. If you live on an above average income and you own your home, you might need about 67% of your pre-retirement gross income to maintain your current lifestyle.

See our how much is enough webpage for more information. 

Incorrect. To maintain a similar lifestyle as you have now, you will need about 67% of your current income.

See our how much is enough webpage for more information.  

house on calculatorYou are entitled to be paid super by your employer if you're aged 18 or older and paid $450 or more (before tax) in a month.

If you are under age 18 you must also work more than 30 hours a week to get paid super.

What is the equivalent percentage of ordinary earnings your employer must pay into your super account?

  • 9%
  • 9.5%
  • 12%

That's correct. The super guarantee rate has been 9.5% since 1 July 2014 and will gradually increase to 12%.
 
See employer contributions for more information. 

Incorrect. The super guarantee rate has been 9.5% since 1 July 2014 and will gradually increase to 12%.
 
See employer contributions for more information.  

dollars and centsIf you do not meet the criteria for an age pension, are there other government concessions that you may still qualify for?

  • No, concessions are only available for pension recipients
  • Yes, there are other government concessions available

That's right! The Commonwealth Seniors Health card and the Seniors Supplement are just two examples of concessions you may qualify for even if you are not eligible for an age pension.

For more information see Over 55s: your money.

That's not right. While the pension is the most common benefit, there are other government concessions that you may be entitled to such as the Commonwealth Seniors Health card and the Seniors Supplement.

For more information see Over 55s: your money.

piggybank in cageSandra is 45 years old, earns $70,000 per year (before tax) and wants to top up her super. She decides to sacrifice $10,000 of her pre-tax salary into super. By doing this she is:

  • Reducing her take-home pay
  • Reducing her overall tax
  • Topping up her super
  • All of the above

Almost. By sacrificing $10,000 of salary to her super, Sandra is reducing her take-home pay. She will reduce the overall amount of tax she pays as the 15% tax on the $10,000 she sacrifices into super is lower than her top marginal tax rate, and of course she's boosting her super.

For more information see contributing extra to super.

Correct. As Sandra is sacrificing some of her income into super her take-home pay will be reduced. She will reduce her overall tax as the 15% tax on the $10,000 she sacrifices into super is lower than her top marginal tax rate, and of course she's boosting her super.

For more information see contributing extra to super.

piggybank brokenMick is 30 and has a few bills piling up. Can he access the money in his superannuation account to help with his finances?

  • Yes, he can access money in his super account
  • No, he cannot access money in his super account

That's right. By law, there are very limited circumstances in which you can access your super before retirement (called 'early release' of super), including severe financial hardship and compassionate grounds. You may also access your super early if you suffer permanent or temporary incapacity, a terminal medical condition, or are departing Australia permanently and are not an Australian or New Zealand citizen.

Read more about getting your super and superannuation scams.

That's incorrect. By law, there are very limited circumstances in which you can access your super before retirement (called 'early release' of super), including severe financial hardship and compassionate grounds. You may also access your super early if you suffer permanent or temporary incapacity, a terminal medical condition, or are departing Australia permanently and are not an Australian or New Zealand citizen.

Read more about getting your super and superannuation scams.

piggybanks stackedBarry, 25, earns $48,000 per year. If he puts an extra $20 per week from his take-home pay into his super fund earning 6.2% return, what sort of difference could that make by age 65?

  • Around $24,000 extra in super
  • Around $48,000 extra in super

No, Barry would probably end up with an extra $48,000 in his super by the time he turns 65. Our super contributions optimiser can show you the best mix of contributions to really boost your super. 

Read more about contributing extra to super or use our super contributions optimiser.

Yes, that's probably about right. Our super contributions optimiser can show you the best mix of contributions to really boost your super. 

Read more about contributing extra to super or use our super contributions optimiser.

leggo blocksA self-managed super fund (SMSF) is a do-it-yourself super fund. If it suffered a loss as a result of fraud or theft, does an SMSF member receive the same compensation as a regular (APRA-regulated) fund member?

  • Yes
  • No

That's right! Regular super fund members are eligible for compensation when they suffer loss as a result of fraud or theft but SMSF members are not.

For more information see self-managed super funds.

That's incorrect! Regular super fund members are eligible for compensation when they suffer loss as a result of fraud or theft but SMSF members are not.

For more information see self-managed super funds.

house on calculatorLisa and Leo are 70 and thinking of taking out a reverse mortgage of $50,000 on their house, with an 8% interest rate.

Assuming an establishment fee of $1,200 and ongoing fees of $10 a month, how much will they owe at age 80?

  • About $55,000
  • About $85,000
  • About $115,000

That's right! After 10 years Lisa and Leo would owe about $115,000.

For more information see reverse mortgages or use our reverse mortgage calculator.

That's incorrect. After 10 years Lisa and Leo would owe about $115,000.

For more information see reverse mortgages or use our reverse mortgage calculator.

coin stackBruce is 40 and self-employed. His business profit is $55,000 per year and he has no other income. He contributes $20,000 into a complying superannuation fund.

Can Bruce claim a full tax deduction for his contribution?

  • Yes, Bruce can claim a full tax deduction
  • No, Bruce cannot claim a full tax deduction

Correct. Bruce can claim a full tax deduction for his personal super contributions of up to $30,000 a year.

See super for self employed people for more information. 

That's incorrect. Bruce can claim a full tax deduction for his personal super contributions of up to $30,000 a year.

See super for self employed people for more information. 


Last updated: 26 Jul 2016