Superannuation is a retirement program, fund, or scheme that provides retirement income. It is a type of pension fund that is commonly used in Australia. Superannuation funds are created by companies to benefit their employees, and funds deposited in a superannuation account will grow through appreciation and contributions until retirement or withdrawal.
There are two types of superannuation funds: defined-benefit funds and accumulation funds. Most super funds are accumulation funds, which means that the money you and your employer contribute is invested and the final benefit you receive depends on the investment returns.
Superannuation funds can be categorized into four types: retail, industry, public sector, and corporate. Retail funds are usually run by banks or investment companies and anyone can join. Industry funds are profit-for-member funds that began as super for a particular industry. Public sector funds are for government employees, and corporate funds are created by employers for their employees.
Superannuation is an employer-sponsored retirement account used in Australia. It is similar to U.S. annuities or defined benefit plans in which the employer contributes to the employees retirement account. Superannuation is something that Australians have control over, and they can choose not only the fund but also the type of investment.
