When an employee makes regular contributions equal to 7% of their salary and their employer also contributes the equivalent of 14% of salary to a superannuation fund that is an accumulation scheme:

Question

Quizplus · Accepted Answer

In an accumulation scheme, the final payout benefit is not predetermined and depends upon the investment performance of the fund. The regular contributions made by the employee and the employer are invested, and the final payout depends on the accumulated value of these investments at the time of retirement.

When an Employee Makes Regular Contributions Equal to 7% of Their