What is Superannuation?
Supperannuation, often called Super, is a long term savings system designed to help Australians fund their own retirement. During your working life, money is paid into a super fund and invested on your behalf. Over time, these investments grow, helping you build financial security for when you stop working.
Your super account is usually managed by a super fund. These funds invest across different assets such as shares, property and bonds, depending on your chosen investment option. Most Australians are free to choose their super fund, though many simply use the default set up by their employer.
Super is not accessible until you reach what is known as the preservation age. The current preservation age is set to 60 (at the time of writting this mini article), however you should search to make sure that is still up to date and relevant. This ensures that the money saved is specifically for retirement. Over decades, the combination of regular contributions and compound investment growth can make super on of your most valuable long term assets.
Those who are looking for more control over where the funds are actually invested should check with their super fund, as they often have customisable options.