What is Superannuation (Super)?

Superannuation? A love-hate relationship for many Australians. They love it because it's for when you retire and hate because many don’t know how it works but we are here to help you!

So what is Super?

Super was introduced in the 1980s as a way of people funding their retirement.  Superannuation is there to build up funds to fund your retirement. That’s solely what it’s there to do.

Is Super an investment?

Although super funds invest your money in many things, such as shares, property and managed funds. They may also offer different types of insurance, such as income protection.

But, superannuation is not an investment. Superannuation is a tax structure, first and foremost. From there, you then place money into investments. So they are two completely separate issues. 

How does it work?

Your employer will make regular contributions into your fund, equivalent to at least 9.5% of your salary, and you can also make extra contributions. The money is invested by the super fund so account holders can earn a return on their money.

When can I access all this money that has been taken out of my salary?

Normally Aussies can’t access their super until they hit retirement age. However, there are some government schemes, such as the First Home Super Saver Scheme, which was introduced on July 1 2018 and allows eligible account holders to withdraw their super to go towards a home deposit.

To learn more about Superannuation or if you need any advice on your super, contact us at (08) 9248 9991 or email us at admin@kdaaccountants.com.au.

We are here to help you!