The majority of superannuation funds are in accumulation phase based on contributions and their subsequent earnings.
In an accumulation fund your account balance is determined much like that of a bank savings account. Your account balance will include all contributions, earnings (positive or negative), less any expenses, insurance premiums and tax. As a result it is difficult to pre-determine what your final benefit will be.
It is important to be aware that with an accumulation fund you take responsibility for the underlying investment of the fund, a key difference to a defined benefit fund where the risk is borne by your employer.
Like defined benefit funds fund members of accumulation funds can usually elect to take either a lump sum or a pension in retirement or a combination.
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