What is superannuation?
Superannuation (or super, as we like to call it) is simply money – YOUR money - put away for your retirement.
A super fund, like HOSTPLUS, invests the money in your super account for you, so it can grow over time.
Because your super account is built over your entire working life, it’s likely to be one of the largest investments you’ll ever have - for some people it’s almost 50 years of saving!
What the Oxford Dictionary says: su·per·an·nu·a·tion / soōpərˌanyoōˈāSHən / noun.
- regular payment made into a fund by an employee toward a future pension
- a superannuation fund
- a pension of this type paid to a retired person
- the process of superannuating an employee
How does the money get into my super account? Does it come out of my pay?
Your super account is made up of compulsory contributions (sometimes called Super Guarantee contributions) that your employer makes for you by law when you’re working and are eligible.
This money comes from your employer and it’s in addition to your salary – it doesn’t come from your pay packet.
Super Guarantee law was created to ensure all Australians have some kind of savings in retirement – the government knows that not everyone would save for their future if it wasn’t compulsory and that relying on the age pension probably won’t be enough for most people.
You can also add extra money to your super account yourself.
Who gets super?
Generally, all employees aged between 18 and 70, who are paid $450 (before-tax) or more in a calendar month are covered by the SG legislation, whether you work full-time, part-time or on a casual basis.
You may be excluded from receiving an SG contribution if you earn less than $450 in a calendar month are under age 18 and work less than 30 hours a week, are over age 70 or are paid to do work of a domestic or private nature for less than 30 hours a week.
How much super should I get?
The amount of your employer’s contributions is required to be at least 9% of your ordinary time earnings (ie. 9% of your salary).
If you don’t think you’re employer is paying your super, or is paying enough super, the ATO has some advice about what to do here.
Why do I need to worry about super? Won’t I get a government pension payment when I retire?
For most people, the age pension won’t be enough to maintain your current lifestyle or the kind of lifestyle you'd like to have when you retire.
Even the Government knows that the age pension won’t be enough for most people, so they encourage you to maximise your retirement savings by providing generous tax advantages for extra super contributions you make and through initiatives like the co-contribution scheme.
More about the benefit of increasing your 9% contribution
If super is my money, why can’t I withdraw it now? I could use the money to buy a house, or invest it myself.
By law, you can’t access super until you retire, so it’s a great way to save for your future, knowing that you can’t dip into it for anything else.
Generally, your super money is preserved in a super or rollover fund until you retire from the workforce on/or after reaching your preservation age, which varies between 55 and 60 years of age, depending on your birth date (see below). If you are born after June 1964 your preservation age will be 60.
| Date of birth | Preservation age |
| After June 1964 | 60 |
| July 1963 – June 1964 | 59 |
| July 1962 – June 1963 | 58 |
| July 1961 – June 1962 | 57 |
| July 1960 – June 1961 | 56 |
| Before July 1960 | 55 |
Why is my super with HOSTPLUS? I don’t remember joining. Can I choose which super fund my money is with?
Super Choice law gives eligible employees the ability to choose the fund that their super contributions are paid to.
Employers are also obligated to choose a ‘default’ super fund, for employees who don’t make a choice, so HOSTPLUSmay be your employer’s default super fund.
Choosing the right fund now can make a lifetime of difference.
You may want to compare super funds online using the Applecheck tool provided by independent ratings agency, Chant West. ASIC’s MoneySmart website also has some great tips for choosing a super fund.
For information on Super Choice, including eligibility, talk to your employer or call 1300 HOSTPLUS (1300 467 875), 8am – 8pm, Monday to Friday.
Why choose HOSTPLUS?
For full details about super with HOSTPLUS, refer to our Member Guide.