Once Upon a Dime

Superannuation – Saving the Economy, Saving for Retirement

We work to sustain a living, to provide for the basic needs of our family and to be prepared for the future. We work to earn and earn to get secured. But the strength and good health we have now will soon fade until we reach retirement. Retirement is what a lot of people are worrying about especially those who are not earning enough to save for the future. This matter is just one of the concerns that can be addressed by the government, thus the terms pension and superannuation are born.

Superannuation is a pension method formulated due to the projected peak in the retirement age in line with the population boom in the western countries in the 1940’s to 60’s. This pension scheme is applied in Australia where nine percent of an employee’s wage is contributed into a superannuation fund which can be accessed by the employee only when he retires or some other valid reasons. The law behind this is made for the welfare of both the country’s economy and the seniors. With superannuation, the economy will not be burdened with too much pension expenses while the retired citizens still receive something for themselves after contributing to the economy of the country.