Superannuation - The Basics

Superannuation is a very important tool to plan for your retirement. I understand this could 40+ years away, but when you retire you will be glad that you had planned for it - and you can enjoy your multiple yachts. And now is the time to look into it.

Superannuation is a compulsory fund that your employers must put an additional 9.25% of your wage into. If you're under 18 you must work at least 30 hours that week to be eligible, and if you're older than 18 you must earn more than $450 a month before tax.

If you've worked at somewhere like McDonald's or a supermarket during your school years it's likely that you already have a fund set up, if not there are a few links of high rated Super Funds below.

SunSuper
HostPlus
REST Industry Super
AMP Super

The Super fund that your employer may have set you up with is possibly not a high performing super fund. It's important to do some research into your fund, and whether there would be any benefit in rolling over your super into a different fund.


There are estimates that a couple will need about $700,000 to retire comfortably. A 20 year old, currently earning $40,000 with an expected raise of 3% a year will earn approximately $357,000 in superannuation until an expected retirement age of 65. When you factor in inflation, it is obvious that it is very important to begin organising an investment plan now, not in 20 years time.