Superannuation – What Is It and What Do I Need To Know?

Super isn’t just for boomers

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Superannuation (super) might not be the most exciting thing to think about when you're young, but it’s actually one of the most important parts of your financial future.

Here’s what you need to know to stay on top of it from early on.

What is superannuation (super)?

Superannuation (or super) is money put away while you’re working by your employer.

It’s invested on your behalf to support your financial means once you are retired.

 

It is a long-term investment that grows over time.

Super is paid on top of your wages, not taken out of them.

So think of it like bonus money your future self will thank you for.

How do I start earning super?

Once you are 18 and working or under 18 and working at least 30 hours per week, your employer is required to contribute a minimum of 11.5% of your pre-tax income (increasing to 12% on 1 July 2025) to your nominated super account.

You can also make voluntary contributions into your account.

How do I choose my super fund?

It is important that you do your own research regarding super funds.

You don’t have to stick with the default fund your employer signs you up to.

You can pick a fund that better matches your needs, values, or future goals.

Make sure you consider fees, performance (how well the fund has grown over time) and investment options (sustainable investing, technology) when choosing your super fund.

To help you compare superfunds, check out YourSuper comparison tool, Moneysmart or Canstar.

When can I access my super?

Your super isn’t like a savings account you can access whenever you want.

You can’t withdraw any amount of money from your super until you turn 65, or until you’ve reached your ‘preservation age’ and retire, which for anyone born after 1 July 1964, is 60 years old.

There are a few early access exceptions, but they’re only granted in very specific situations, like severe financial hardship or medical conditions.

Do I need to keep track of my super?

Keeping track of your super is always a smart idea.

If you’ve had a few casual jobs, you might have multiple super accounts (and be paying multiple fees).

You can easily check and combine your super accounts through myGov.

You can also check that your employer is actually making their required super contributions.

Your super fund may have an app or website you can log into to check your balance and contributions.

Super is your long-term savings for retirement, and it starts with your very first job.

Choose a fund that works for you, check in now and then, and give your future self a head start.

This article does not constitute personal financial advice. Before acting on any information in this article, you should consider your money goals and financial situation to ensure it’s appropriate to you.