What is superannuation in Australia?
Superannuation, often called super, is Australia's compulsory retirement savings system. Employers must pay a percentage of an employee's wages into a super fund, which is invested and can usually be accessed after retirement.
Compulsory superannuation was introduced in 1992 under the Keating government. The amount employers must pay, called the superannuation guarantee, has increased over time and reached 12 percent of ordinary earnings in July 2025.
Super funds invest the money in shares, property, bonds and other assets. Over decades, this helps the savings grow.
Accessing super
People can generally access their super when they reach their preservation age and retire. There are limited exceptions, such as severe financial hardship or terminal illness.
Australia's superannuation system holds trillions of dollars, making it one of the largest pension pools in the world.
Many Australians also make extra voluntary contributions to boost their retirement savings. The system works alongside the Age Pension, a government payment for older people with limited income and assets. People can choose their super fund or use the default fund nominated by their employer.