Superannuation in Australia

 Make Sure You are Relaxed and Have Super Fun When You Retire with Superannuation

Having a tiresome routine at work, 24/7, all day long, and eagerly wishing for a cosy, relaxed and tension- free life after the retirement? Then do spend a little time learning about the superannuation fund, which is surely a breeze of fresh air for every Australian national. This super fund is not only just an account for saving money; rather this deal is highly beneficial in so many other ways too that only the superannuation fund members get to avail. Depending upon the type of your employment, your employment status, and your income, there are various benefits that the super fund members receive from the government after the retirement.

money jar with word retirement

Let’s see superannuation in detail, what it actually is? Where will your money go? When can you receive your savings? And of course the benefits you get out of it. You’ll learn everything about superannuation here.





  • What is superannuation?

Superannuation is a Government organized effective pact of arrangements that enable the people of Australia to save money from their income, to be used after retirement. To simply state, this is similar to having a managed fund, in which a specific amount of your money is pooled with the same amount of other members’ money, and your money is invested and managed in this fund through some professional fund managers.

Superannuation is partly compulsory, recommended by the Government of Australia, and the members are benefited concerning different taxation. Generally, the members are unable to access this saved money until their day of retirement. There are different ways to save the money. Firstly your company’s employer contributes to your superannuation fund (employer superannuation contributions). Then you can also increase the savings with your own savings (personal superannuation contributions). And if your earnings are not sufficient enough to be eligible for the superannuation fund, then the government will make contributions on your behalf (bonus superannuation contributions made by the government/ co-contribution).

  • What is done with Super Money?

You are not only saving your money rather there are different investment options available through which you can invest this money. You can opt for single sector investment opportunities such as buying shares or becoming a stakeholder by investing in larger firms.

  • When Can You Access Your superannuation Money?

The superannuation fund is fundamentally made to benefit you after your retirement. You can easily access all your money after you have reached preservation age and are retired. This is like a savings account in which all of your money remains intact, and you get to use all of it when you are no longer employed and can enjoy and be relaxed.

Here the following table will let you know about the time (year) you can access your superannuation money.

Date of Birth (DOB)

Preservation Age/ Age when You can Access your Money

From July 1st, 1961- June 30th, 1962


From July 1st, 1962- June 30th, 1963


From July 1st, 1963- June 30th, 1964


From July 1st, 1964



  • Benefits of Having superannuation

    There are numerous benefits of saving your money in the super fund, apart from the obvious of saving it for after retirement. Here, take a look at some of the most remarkable features of super funds that you might not know about.

    Payment of Low Taxation Rates After Retirement

    To attract more and more people to take part in this old-age benefiting super find, the Australian government has designed the whole set up of superannuation fund in a way that makes an Australian national self-sufficient after his/ her retirement. For the encouragement of people to make contributions to this fund and save an excessive amount of money for their old age, the members can avail a series of a low percentage of tax rates.


    retirement plans

  • Self Managed Super Funds

    One thing that you can do in Australia has a self-managed super fund (SMSF). An SMSF allows you to be in complete control of your own superannuation and often avoids unnecessary costs and interest rates.


  • Salary Sacrifice Benefits

    Other than saving a particular amount in the super fund, those who opt for cutting down their salary and utilizing the salary sacrifice option get a lot of benefits about the decrease in the taxes. The incomes of these people are taxed at the rate of as low as 15%. This is surely a huge deal and a lot of savings, especially for those who came under the tax umbrella of 45%.


  • Protection against Bankruptcy

    In an unfortunate case of you being bankrupt, your super funds will remain intact and protected from the creditors. Holding your savings in the government regulated superannuation fund is, of course, the most secure and protected way. This thing is particularly important for those of you who own a small business or are professionals. But superannuation funds that are transferred right before bankruptcy, deliberately, are certainly not protected, and there is a set of special rules devised for such circumstances.


  • Death Benefit Nomination

    Challenging of different terms of the will for their own benefits has become really common by the discontented family members. But under the death benefit nomination (DBN) under the superannuation ensures that after your death, your saved money goes to those people to whom you wanted to give this money after your death.


    benefit of superanuation

  • Investment Chances within Bigger Assets

    By making personal contributions to a bigger super fund, you’d be able to pool your saved money with other members of this fund, which otherwise is nearly impossible for an individual to access on his own. Therefore, with the super fund, you can get your hands on large and more beneficial investment opportunities. These bigger pot opportunities include taking stakes in an office tower, a motorway or investing your retirement savings in a wholesale investment like corporate bonds. This surely is a great benefit for individual investors, which otherwise cannot avail such enormous opportunities that easily.


  • Tax-free Pension

    By contributing to the super fund during your employment, you’ll be able to receive your pension as is, without any deduction of taxes, and you can also have the lump sum amount of your pension right away. As per new rules, implemented recently from July 1st, 2017, the retirees will be able to save $1.6 million in their tax-free super fund account.



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