The basics
Why is super important?
It could be your largest asset!
Superannuation is the way that most people save for their retirement. For many people, their super is likely to become their largest asset other than the family home, so it’s an important investment.
You can’t rely on the age pension
Our ageing population adds weight to the importance of super. With people living longer and retiring earlier, the balance between working people and people who are on the age pension is changing. With less workers paying tax to support age pension payments, the Government may not be able to maintain the same level of age pension support in the future. Qualifying for the age pension is likely to become more difficult, so providing for your own retirement is something the Government encourages.
It’s your money
Your super may not be available to you yet, like the money in your bank account, but it’s still your money. And there are some simple ways you can take control and make it work hard for you along the way. Whether it’s putting your own money towards your super, making an investment choice or taking out additional insurance cover, there are many ways you can take control, and it’s quite simple to do so.
It’s a long-term investment
Generally, you won’t be able to access your super until you reach your preservation age and retire. This is a Government rule that stops you dipping into your savings along the way and it means your savings enjoy super’s tax favoured treatment over a longer period of time.
How super works
Your employer makes payments into your super account on your behalf (Superannuation Guarantee contributions) and you can also put your own money into your super account if you wish. The money in your account is invested during your working life and your account balance (the money that has been paid in, less any fees and other costs, plus investment earnings) is generally payable to you when you reach your preservation age and retire. At that time, you can choose how to take it: as a lump sum, as an income stream (a superannuation pension), or maybe keep it in super until a later date.
Tax advantages
Super’s special tax treatment means it offers tax advantages that other types of savings do not offer. For more information see our Tax section.
Insurance through super
The insurance cover provided through your super fund will help to protect your savings if you have to stop work because of accident or illness, or if you die. Group insurance cover through a super fund is often cheaper and easier to arrange than an individual policy. For more information see our Insurance section.