Superannuation bonds are more suitable if you do not intend to make further contributions, or only intend to make large additional contributions. You can withdraw non-preserved money at any time, but only at irregular intervals. Withdrawals may be subject to tax.

Approved deposit funds are trusts set up for the investment of ETPs. You must either withdraw, or roll over, your money to a regular income stream product by age 65. You can withdraw non-preserved money at any time, but only at irregular intervals. Withdrawals may be subject to tax.

Some rollover investments have fixed term options that operate like a term deposit: they offer a set rate of return for set period of time. Withdrawals may be restricted during the fixed term.

The advantages of rollovers

• Your money and the earnings accumulate for use when you retire.
• You don't pay tax until you make a withdrawal. The tax payable reduces significantly after age 55, and may be deferred indefinitely in some cases.
• Rollover funds pay tax at a maximum rate of 15 per cent on their earnings.

Tips for investing in rollovers

• Read the customer information booklets carefully to see where your money will be invested.
• Make sure you understand the level of risk involved.
• When choosing your fund, think about more than just the level of fees. Look at other features to ensure that it meets your needs.
• Get expert help from a licensed financial adviser or accountant if you are not sure about how rollovers would apply in your circumstances.
• Make sure you fully understand the implications of rolling over before committing your money.

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