Superannuation
A superannuation is a form of pension. Groups of people pool their money and invest them for a certain length of time. By the end of the investment period and by the time that people reach their so-called preservation age, the pooled money should have increased and is ready for the group members to retrieve as pension.
Who are eligible to have a superannuation?
The people who are eligible to have a superannuation are the following:
- New graduates. These are the ones who have just been hired into their first jobs or are earning in their first jobs.
- Long-time employees. These are the people who have been working for longer periods of time. Similarly, those who are almost near the retirement age may be involved in a superannuation fund.
- Self-employed workers. These are the people who work for themselves or run businesses that they own.
- Part-time or casual workers
Who chooses the superannuation fund?
There is no restriction as to who is entitled to choose which superannuation fund to become involved in. Anyone, as long as he is in the work force, is entitled to research about and choose the superannuation fund he wants.
Who pays for the superannuation?
- Employers. All employers are required by law to provide the Superannuation Guarantee (SG) to their employees. The Superannuation Guarantee states that the employers to pay for the superannuation of their employees if they are eligible.
- The self-employed. Self-employed workers must pay for their superannuation as they have no employers.
- An employee. When circumstances call for it, an employee may choose to pay for his/her spouse's superannuation through his salary
What characteristics make an employee eligible for superannuation?
- If an employee falls in the age bracket of 18 to 70
- If the employee has earned 450 dollars in the minimum
- If an employee is working on a part-time, casual, or full-time basis
