Superannuation in Australia facts for kids

Superannuation, often called "super," is a special savings plan in Australia for people who work. It's a way to save money during your working life so you have an income when you stop working and retire.

When you work, your employer has to put a certain amount of money into your super account. This money is extra, on top of your regular pay. The idea is to help you build up savings for your future.

How Super Works in Australia

The Australian Government decides how much money employers must put into super accounts. This amount is a percentage of what an employee earns. For example, this percentage has slowly increased over the years and will keep going up until it reaches 12% in July 2027.

You can also choose to add more money to your super account yourself, if you want to save even more for retirement. Some people even arrange for a part of their pay to go straight into their super, which is called a "salary sacrifice."

Important Things About Super

One common problem with super accounts is when people have more than one. If you have multiple super accounts, you might be paying fees on each one, which can add up to a lot of money! It's better to combine them into one account if you can. The government is working on ways to make it easier for people to do this.

You usually can't take money out of your super account until you retire. However, there are a few special situations where you might be able to access your super earlier, like if you have a very serious illness or a permanent disability. Since 2018, there's also a special program called the First Home Super Saver Scheme. This allows people to save money for their first home inside their super account and then take it out when they're ready to buy.

Australia's Super Savings

Australia has a lot of money saved in superannuation! As of June 30, 2018, Australians had about AU$2.7 trillion in super assets. This makes Australia one of the biggest holders of pension fund money in the world. By June 30, 2019, this amount had grown to AU$2.9 trillion.