Superannuation is a way of saving for retirement by putting away sums of money through your lifetime and accessing these upon retirement.  Under Australian Government Superannuation Guarantee an employer has to put money in to a superannuation account for every employee, with compulsory 9% contributions required. You can also make voluntary additional contributions to your fund or make salary sacrifice arrangements with your employer to see a higher contribution paid into your fund.

Your nominated Superannuation Fund invests your money through the fund, to generate interest.  On retirement your lifetime contributions and interest through investment growth is available.  There are a range of investment vehicles funds use such as the stock market, property and bonds to name a few. Each carries a varying element of risk and should be fully discussed with your Superannuation provider prior to committing to a specific Superannuation investment product.

Superannuation is a good way to save as it allows you to save a little bit over a long period of time as everyone starts accumulating superannuation from their very first casual employment.  Your investment then combines with everyone’s contributions into a much larger investment fund that can often attract better investment rates.  Because superannuation is not taxed at the same rate other investments you reap the rewards of a lower tax rate.