Retirement probably feels a lifetime away, especially if you haven’t even earned your first payslip yet. But understanding how super works now, and making a few smart choices early, could shape what your life looks like decades from now. The money that lands in your super account during your teens and early twenties has more time to grow than any dollar you’ll earn later in life. Here’s some superannuation basics to get you thinking.
What is super and who pays it?
Superannuation, or ‘super’, is Australia’s system for saving money for retirement. If you live somewhere else, your country may have a similar pension scheme with different rules. Think of super as a savings account you can’t touch until much later in life. Your employer pays into it, you can choose to add to it, and your fund invests the money so it grows over time.
The amount your employer must pay is called the super guarantee. Since 1 July 2025, it has been 12% of your earnings. So if you earn $300 in a week, your employer should pay at least $36 into your super on top of your wages.
There’s one catch for younger workers. If you’re under 18, you only get super for weeks when you work more than 30 hours. Once you turn 18, you get it no matter how many hours you work or how much you earn. That applies whether you’re full-time, part-time or casual.
What’s new in 2026?
The biggest change this year is Payday Super. From 1 July 2026, employers must pay your super each time they pay your wages, rather than once every three months. That means your money starts being invested sooner. It also makes it much easier to spot if a payment is missing.
A really simple but great habit to build is when you check your payslip, check your super account too. The two should line up. If they don’t, ask your employer about it, or contact the ATO if it isn’t sorted.
Voluntary contributions: topping up your own super
Your employer’s 12% is the minimum. You can also add your own money, and these extra payments are called voluntary contributions. There are two main types.
After-tax contributions come from money you’ve already been paid, such as a transfer from your bank account. Pre-tax contributions, often called salary sacrifice, are where you ask your employer to send part of your pay to super before tax is taken out. These are generally taxed at 15%, which may be less than the tax on your wages.
If you’re on a lower income, the government may also chip in. In 2026–27, if you earn $49,293 or less and put in $1,000 of your after-tax money, you could get up to $500 extra. This is called a super co-contribution. You don’t need to apply, it’s paid automatically after you lodge your tax return, as long as your fund has your tax file number, and you meet all of the eligibility requirements.
How this could help you retire earlier or live better
Money added into your super during your teens and early twenties has 40 or more years to grow. Each year, your fund earns returns on your balance. The next year, it earns returns on those returns too. This is called compound growth, and time is what makes it powerful.
If you added just $20 per week to your super fund between the ages of 19 and 67, it could make a big difference:
A bigger balance gives you more choices later. Having more saved could mean you’re able to stop working at 60 rather than working longer. Or you might retire at the usual time with more money to live comfortably, for travel, hobbies, or helping family.
One thing to weigh up before you commit to voluntary contributions, is that your money in super is locked away for decades. So if you’re saving for a car, studies, or your first home, those goals may need to come first. Even so, a small top-up now and then will still make a difference.
Simple ways to look after your super
You don’t need to be a money expert to take care of your super. A few small habits go a long way.
- Give your fund your tax file number. Without it, you may pay extra tax and miss out on government top-ups.
- Keep one account. Your super fund now generally follows you from job to job. If you do end up with more than one account, combining them means you only pay one set of fees and gain more in interest.
- Look at fees and performance. Small differences in fees add up over 40 years. Moneysmart’s guide to choosing a fund walks you through what to compare or you can
- Check your investment option. Most funds let you choose how your money is invested, including options that match your values.
- Watch out for scams. If someone you don’t know calls about your super, hang up. Never feel rushed into switching funds, take your time and do the research.
Start small, start now
You don’t need to have everything figured out. Start by finding out which fund your super goes into, then log in and check your balance. From there, think about whether a small top-up fits your budget. Your future self will thank you for every step you take today.
Want to build more money confidence? Explore our managing money articles for tips on budgeting, tax and saving.
