You'd be forgiven for tuning out whenever you hear someone bring up that dreaded, finance-y word: superannuation.
It often comes alongside other fun words like 'investing' and 'retirement', and I can barely plan what's for dinner tonight, please don't ask me how my long-term savings are going.
Looking out for a future self just doesn't come naturally to most people, and for good reason. Who knows what the future holds?
Watch: 5 money lessons your parents told you, that you should probably forget... Post continues below.
But please, allow me to convince you to invest (geddit?) a few minutes of your time in this article, because superannuation is a pretty important concept to get your head around, and it could literally make you hundreds of thousands of dollars.
This week on Mamamia's money podcast, What the Finance, Melissa Browne and Pallavi Sharda sat down with Melinda Howes from BT Super, to chat all things superannuation.
Here are some of the key takeaways from that chat:
What is Superannuation?
Superannuation, otherwise known as 'Super' is money that is set aside while you're working, so you'll have some money to live off when you retire.
If you work in Australia, your employer sends 9.5 per cent of your salary to your super fund each payslip.
It's a pretty seamless process, and many Australians don't even realise it's happening!
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What are the types of Super funds?
Industry super funds are typically the default super funds for someone entering the workforce.
They invest in ETFs, aka exchange-traded funds and are usually the cheapest, most automated option. Plus, it leaves all the investment-minded thinking up to someone else.
Self-managed funds are, as the name suggests, taken care of by yourself.
These funds are great as you can align your values closely to your investments, although they take about 100 hours a year to run, and you must keep up to date with any and all superannuation law changes.
Working out which fund to go with will mean prioritising what matters most to you. If you don't like to surrender control of your money to someone else, and are relatively financially savvy, maybe a self-managed fund would work for you.
If you don't have much time and cash to spare, Industry super funds could be a safe and reliable option for you.