Superannuation is a tax advantaged way of saving for retirement and makes up two of the three “pillars” of the Government’s retirement income policy.
The three pillars are:
- Government funded means-tested age pension
- Compulsory superannuation contribution (i.e. the Superannuation Guarantee)
- Voluntary superannuation contributions Superannuation is often simply referred to in everyday conversation as “super”
The Australian superannuation sector has grown to become one of the largest private pension funding arrangement in the world with assets exceeding $2.6 trillion as at December 2018.