What is superannuation? How super works

New to super - superannuation explained

Your super can be one of your biggest investments when you retire. It's important to understand what superannuation is, how super works, and how to get the most from it.

What is superannuation?

Super basics - what is superannuation?

Superannuation is a compulsory scheme that helps Australian workers save for retirement. Basically you put away money while you're working so you have money to live on when you retire.

How does super work?

Generally, your employer must contribute a percentage of your salary to a super fund on your behalf if you meet one of the following conditions:

• aged over 18 years, or
• under 18 years and works more than 30 hours per week on a full-time, part-time or casual basis.

The current superannuation employer contribution rate is 12% of your ordinary time earnings (OTE).

 You also have the option of adding extra to your super while you're working through voluntary super contributions to help boost your income when you retire.

What are the benefits of superannuation?

Super is considered one of the most tax-effective ways to save for retirement. Taking steps early on could make a big difference to your retirement and securing a stable financial future.

If you have any further questions about what superannuation is or you’d like to know more about the super investment options offered by Prime Super, call us on 1800 675 839 between 8am and 8pm AEST Mon–Fri.