How Australia’s super system works for you

For over 30 years, Australia’s world-leading super system has helped Australians save more for their retirement. Learn how the super system works and how you can get the most out of it.

Australians have built up more than $3.9 trillion of retirement savings1, making our super system the 4th largest in the world2 and one of the best3. However, most Australian workers today weren’t in the workforce when the Superannuation Guarantee was legislated in 1992, so understanding of super remains low. It is important to know how super works and how it benefits you. That way you can make sure you’re getting the most out of it.

 

Why super in Australia is so super

The Australian superannuation system was built on the foundations of universality, compulsion and preservation, ensuring that everyone has the right to receive superannuation, that they contribute regularly and that they keep their savings until retirement. These three central tenets of the system work together to provide additional income and financial security above that covered by the government Age Pension, allowing retirees to enjoy an improved standard of living, now and into the future.

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What is superannuation?

Superannuation (or ‘super’) is money set aside while you’re working to support your financial needs in retirement. Your super is invested in a range of assets to help grow your balance so you can have the best possible retirement outcome. We cover the basics of how super works and why you need it.

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Four ways to make your super even more super

Learn more about superannuation

Super across generations

AustralianSuper’s latest research into how people feel about the superannuation system finds that Australians overwhelmingly see the benefit of super.

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Compounding and how it can grow your super

Compounding is often referred to as one of the great wonders of investing. Learn how it can help you.

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Net benefit and why it’s important to your super

Net benefit is the number that really matters when it comes to assessing how your fund is performing.

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  1. APRA Quarterly Superannuation Performance Statistics, June 2024

  2. Organisation for Economic Cooperation and Development (OECD), OECD Pension markets in focus: Preliminary 2022 data, September 2023, p225

  3. Mercer CFA Institute Global Pension Index 2024 ranked Australia’s superannuation system 6th out of 48 retirement systems

Do you know your super balance?

Most Australians check their super balance at least every few months – more often than they check their insurance or their mortgage and less often than their household bills. Retirement may be a way off, but it’s worth checking to ensure everything’s in good order.

Do you know where your money goes?

Over three quarters of Australians say their super is either their first, second or third largest asset. Some people think of super as another bank account you get access to when you hit retirement age. However, with super, your fund usually invests your money with the aim to grow your savings to help you achieve the best financial position in retirement.

Superannuation Guarantee

Only 30% of Australians think they would be able to save for their retirement if they didn’t have super. The superannuation guarantee is an important part of the superannuation system. It was introduced to increase the financial security of Australians once they are no longer working.

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