What is Superannuation?

Superannuation or ‘super’ is the money that is kept in a special account called a ‘super fund’ for when you retire.  The money comes from contributions put into your super fund by your employer.

Your employer legally has to pay at least 9.25% on top of your wage into a super fund. This is 9.25% is called the ‘Super Guarantee’.

How does it work?

It’s important to know that super is paid on top of wages for your work. It should be paid to full-time, part-time and casual employees.

You can only use the money when you reach retirement age or if you are experiencing severe financial hardship. In the meantime your super will be used by your super fund for investments. Check out our article on investing your super for more info!

Are you entitled to super?

If you are paid over $450 (before tax) per month at work, you are entitled to superannuation. The Fairwork website will help you to figure out what you are supposed to be receiving.  The amount is based on what type of job you have and what is the minimum amount you should be paid (called the award wage).

The Fairwork website also provides information on how to approach your employer, if they aren’t paying you the right amount of super.

What if I have super in more than one fund?

Lots of people have super in multiple funds from when they’ve changed jobs or moved interstate. One of the challenges can be to find your super in different places and move it all into the one fund.

The first step is to find it where it is, Findmysuper will help you to track down your lost super and Money Smart also has a handy guide about moving your super into the one fund.

Why worry about it now?

Retirement is a long way off, but to make sure you get a good start it’s helpful to make sure a few things are in order.

  • Find out if you are being paid the right amount of super
  • Make sure you know which super fund you are with
  • Confirm that  your superannuation fund has you tax file number
  • Check up on your super with SuperSeeker