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Accumulation superannuation sees 9% of your income
put into a fund on your behalf by your employer.
So this here is money, and this one here is time.
The money that's in an accumulation fund
accumulates as it earns income and increases in value
and more of these 9% contributions are made by your employer.
So it starts off fairly small,
goes up and down
- bit of a stock market correction there,
goes up and you retire at this point here
and convert it into a pension
and hopefully you die somewhere before this point here.
The money you have in a defined benefit scheme
is based on a complicated formula which includes
how much you earn, how much the fund returns,
how much you contribute, how much your employer contributes
and how long you have been a member of that fund.
If you're a public servant and member of the PSS Defined Benefit scheme
you really need to get along to one of the seminars that's run by ARIA.
Because you're encouraged to contribute to this fund
you need to know how much money that you should be putting in.