Pension type fund.
ramble81@lemm.ee 6 months ago
For the non-Aussies, what’s a superannuation?
BrikoX@lemmy.zip 6 months ago
Ilandar@aussie.zone 6 months ago
To be clear, the percentage of your income paid in superannuation is in addition to/on top of your regular wage. So you don’t lose access to money you’ve earned through super, it’s like a bonus payment your employer makes to an investment fund that you can access at retirement. The basic idea is that the payments and interest build into something that can replace the age pension in retirement, which reduces financial pressure on the Australian government.
Historically super has been a very hands-off investment with strict rules about who can access it and when. People cannot be trusted to use the money wisely and so it is locked away for our own benefit. In 2020 the conservative government in power at the time allowed people in “financial stress” to withdraw their super early. There have been reports that this completely fucked some people who, unsurprisingly, completely wasted all their super on nothing of long-term value. In 2022, the conservative government promised in the lead up to the election that people buying their first home would be able to withdraw up to $50,000 of their super to spend on a deposit. Thankfully they lost the election.
bfg9k@lemmy.world 6 months ago
Kinda like americans 401(k)
ag_roberston_author@beehaw.org 6 months ago
401k, RRSP, etc.
Retirement investment account.
zero_gravitas@aussie.zone 6 months ago
With the key difference that it’s compulsory to have one and contribute 11% of your income to it.