Superannuation, or ‘super’, is money saved now, for you to enjoy in your retirement. Super is a tax effective and long term savings plan, designed to give you an on-going source of income in retirement. It works like a bank account that is continuously being added to by your employer, and yourself!
How does it work?
Your employer must contribute 10% of your salary into your super fund. This is called The Superannuation Guarantee (SG). Contributions made to your super accumulate during your working life and are invested in a range of investment assets, such as shares, gold, property and alternative investments.
Profits from these investments, both income and capital growth, are reinvested to increase the value of your super.