What is the difference between superannuation and other forms of investment?

When it comes to saving for retirement, superannuation is specifically designed to help you accumulate funds in an easy, tax-effective way.

Unlike other investments, superannuation is compulsory for most Australians. This is to ensure that people save some money for retirement. In 1992 the federal government introduced the Superannuation Guarantee making it the law for employers to make contributions to their employee’s super funds.

People who are not entitled to compulsory super are employees who are:

  • Paid less than $450 per calendar month (this exemption only applies in relation to the particular month)
  • Under 18 years of age and working 30 hours per week or less
  • Employed for domestic or private work for 30 hours per week or less
  • Covered by a bilateral super agreement. This is for people working temporarily in other countries.


Even though compulsory super is intended to help fund your retirement, it may not provide you with enough money in retirement for the lifestyle that you want. To boost their retirement savings, many people chose to make additional contributions to their super over and above the compulsory employer contributions or they might invest in other areas such as property or shares.

Your financial adviser is available to discuss your retirement planning options with you to ensure your needs are met. Why not schedule a meeting with your financial adviser now?


Information current as at 23 April 2015

The advice is general in nature only. Before acting you should consider the appropriateness of the information having regard to your personal objectives, financial situation and needs. You should read the relevant Product Disclosure Statement (PDS) and Policy Document before making any decision about a product.