How does superannuation work?

Superannuation is an investment vehicle designed to provide money for your retirement. You benefit from:

  • You save regularly over many years
  • Your savings are invested to help your money grow
  • Your money is generally taxed at a lower rate than other forms of investments.

Industry funds focus on keeping fees and charges to a minimum and maximising your savings so you can do all the things you've dreamt of in your retirement.

Employer contributions
Your employer will pay superannuation contributions on your behalf unless you are exempt or self-employed. This contribution is called the superannuation guarantee. If you are eligible, your employer's compulsory contributions must be equivalent to at least 11% of your earnings.  For example, if you earn $60,000 a year, your employer will put at least $6,600 a year into your superannuation.

Personal contributions
You can also make personal contributions to your superannuation. If you make contributions from your after tax income, you may be eligible for the Government co-contribution. 

Read about how workers won the right to superannuation.

Superannuation funds not only manage your super while you're working, they can also help manage your money once you retire. Super funds have products that can provide you with a retirement income stream and keep your savings in a low-fee and tax-effective environment.

Transition to Retirement
ransition to retirement accounts may suit you if you are still working but want to reduce your work commitments while maintaining your income level.

Provided you comply with certain criteria, you may be able to convert your superannuation to a transition to retirement pension. This enables you to receive regular payments from your super savings to supplement your other income.

Account Based Pension
Account based pension accounts allow you to invest your superannuation benefits to create a regular 'pay cheque' paid weekly, fortnightly, monthly or even quarterly, half-yearly or annually.