Superannuation: What It Is, How It Works, Types of Plans
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- Superannuation is Australia’s retirement savings system. It allows workers to save money during their careers to support themselves after retirement.
- Employers contribute to super through the Super Guarantee (SG). As of July 2025, employers must contribute 12% of an employee’s salary to their super fund.
- Individuals can boost their retirement savings through personal contributions. These include before-tax (concessional) and after-tax (non-concessional) contributions.
- Super funds invest contributions to grow wealth over time. Investments may include shares, property, bonds, and cash to generate long-term returns.
- There are different types of super plans and funds. Common options include accumulation funds, defined benefit funds, industry funds, retail funds, and self-managed super funds (SMSFs).
- Superannuation offers significant tax advantages. Contributions and investment earnings are taxed at lower rates, and withdrawals after age 60 are often tax-free.
- Understanding and managing super early helps secure retirement. Professional guidance from firms like Global FPO can help individuals and businesses optimize their super strategy.
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Book a Free ConsultationIt’s the percentage of your salary your employer must pay into your super. It’s currently 12% (as of July 2025).
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