I also posted this to r/Adulting and they referred me here. I’ve heard the term before and I’ve tried looking it up but I still don’t get it. I think I need a proper explanation.
In: Economics
A part of your income.gets sent to super so when you retire after youre 67 (Australia’s new retirement age) the government doesn’t have to pay you a pension.
The super fund invests the money and earns extra (Or loses depending on the investment of course) and then after you retire you live off of the super rather than a government pension.
It can be subsidised with a pension if you don’t have a certain amount of super.
Usually a company pays super on top of your pay, it’s mandatory here in Australia for an employer to pay super.
Basically it’s just a retirement fund.
“Superannuation” can mean a couple of things. Going on the context of your other post, your employer giving you a superannuation means basically that you’ll be able to elect to contribute so much of your income to a tax-advantaged retirement/pension fund, and they will match your contribution up to a certain amount. Either or both of those are superannuation; your employer *giving* you superannuation implies the latter to me.
The term I am more familiar with to refer to this is “401k matching” or “employer matching”; you can read about this concept [here](https://smartasset.com/retirement/how-does-401k-match-work), but I suggest you also speak to your HR department or more senior employees.
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