Superannuation (or super for short) is a compulsory savings scheme where your employer contributes part of your salary (11.5%) into a fund of your choice which you can only withdraw when you retire at age 67, unless you have any other special conditions.
The rate is 11.50% as of 1st July 2024
The main purpose of this is to encourage employees to save for their retirement.
The fund is then invested over time, so that when you retire, the total amount is huge and can fund your retirement (or slightly). You can choose what and how to invest in the Superannuation fund.
For example, you can go 30% into property, 40% into shares and 30% into term deposits.
Over the course of your career, you might have various jobs. It is highly recommended to consolidate all your superannuation accounts into 1 single superannuation fund scheme. This can reduce the amount of administration fees being paid, and simplify the overall process.