What is superannuation?
Superannuation is a retirement savings plan in Australia. It is a long-term investment vehicle that is designed to provide you with an income when you retire. Contributions to superannuation are made by your employer and, in some cases, by you as well. The funds in your superannuation account are invested in a variety of assets, such as stocks, bonds and property, with the goal of growing your savings over time.
Superannuation is a mandatory part of the Australian tax and welfare system, and employers are required to make contributions on behalf of their employees. The purpose of superannuation is to provide financial security for individuals in retirement and to reduce the burden on the government to provide for the retirement needs of its citizens.
There are several different types of superannuation funds in Australia, including industry funds, retail funds, and self-managed superannuation funds (SMSFs). Each type of fund has its own unique features and investment options, and you can choose the one that best meets your needs and goals.