Superannuation: Your Path to Retirement Savings

Superannuation is a compulsory savings system designed to help Australians save for retirement. Employers are required to contribute a percentage of your earnings to a super fund, and you can also make voluntary contributions to boost your balance.

Why Superannuation Matters

Superannuation plays a vital role in ensuring financial security in retirement. Key reasons why superannuation matters include:

• Provides financial security in retirement.
• Offers tax benefits, such as lower tax rates on contributions and earnings.
• Encourages long-term savings and investment growth.

Key Features of Superannuation

Employer Contributions

Known as the Super Guarantee (SG), your employer must contribute at least 11% of your ordinary time earnings (as of July 2023) to your super fund.

Voluntary Contributions

You can choose to add extra money to your super. These contributions can be used to boost your retirement savings and may allow you to claim tax deductions.

Investment Growth

Super funds invest your money in a variety of assets, such as shares and property, allowing your savings to grow over time.

Understanding your super fund and keeping track of your contributions is key to maximising your retirement savings.

FAQs

Q: How much should my employer contribute to my super?
A: Employers must contribute at least 11% of your ordinary time earnings to your super fund. This is called the Super Guarantee (SG)

Q: Can I access my super early?
A: Super can usually only be accessed after reaching your preservation age and retiring. Early access is allowed in limited circumstances, such as financial hardship or severe illness.