If you're like most young Australians, your superannuation account is probably one of those things you know exists but rarely think about… Like your Facebook profile picture, or that Ottolenghi cookbook you got a few Christmases ago. 

Despite this, new research from AustralianSuper shows 90% of young women are determined to improve their money management skills, compared to 77% of young men. 

For many of us, super will become our biggest financial asset, but how many young people actually know which fund they’re with, or how their money is being invested?

Today, we're cutting through the jargon and answering your biggest super questions.

Just before we dive in, a quick note: Today's newsletter is sponsored by AustralianSuper, but this newsletter has gone through our normal editorial process.

Superannuation (“super”) is money set aside for retirement from your pay. Generally, you can't access it until you turn 60 and have retired. 

Employers in Australia are legally required to make super contributions for their eligible employees. Currently, that's 12% on top of your normal earnings.

You don't see this money in your regular pay. It goes straight into your super fund, where it's invested and (ideally) continues growing until you retire.

The system is designed to provide Australians with financial security in retirement

When you start a new job, your employer must offer you a choice of super fund. That doesn’t mean you’re required to go with that fund, though.

Before something called ‘super stapling’ was introduced in 2021, if you didn’t nominate a super fund, your employer would create an account for you with their default fund. Over time, this often led to people holding multiple super accounts across different jobs, and paying multiple sets of fees and insurance premiums as a result. 

Thanks to stapling, your existing super account is now ‘stapled’ to you and follows you from job to job. When you start a new role, your employer will generally pay your super into that same fund unless you choose a different one. 

However, because stapling is a relatively recent change, many young Australians could still have multiple super accounts from jobs they held before 2021, without even realising. If you suspect you might have more than one account, it’s easy to check through your myGov account by linking to the Australian Taxation Office (ATO). 

But not all funds are created equal. Fees and insurance options can vary significantly. Over a working lifetime, those differences add up. A fund charging 1% more in fees could cost you tens of thousands of dollars by retirement.

According to data from Deloitte, here's what the average super balances look like for young Australians:

The gender super gap continues to widen as Australians get older. Men retire with one-third more super than women, on average. 

One reason for this is that women are more likely to work part-time than men, and more likely to take time out of the workforce to care for children and elderly relatives. With fewer super contributions going in, many women miss out on the returns on returns - the powerful compounding growth that builds over decades.

There's also the broader gender pay gap to consider. On average, women earn around 22% less than men. 

AustralianSuper research shows 62% of young women feel overwhelmed by money matters, compared to 48% of young men. Young women are also 15% less confident when comparing financial products, but they’re also more determined to build their financial literacy. 

Understanding your super and making informed decisions early can help you maximise your retirement savings.

Most super funds offer multiple investment options, typically ranging from conservative to high growth (or “aggressive”). Here's what that actually means.

Conservative options are considered more stable because they typically include assets that are considered ‘lower risk’, generally delivering more modest returns over time.

High-growth options invest more in growth assets, which are typically considered ‘higher risk’. They can be more volatile in the short term but tend to deliver higher returns over the long term.

Only you can decide what investment option is right for you, and how you want your money invested.

While market dips might be concerning for someone near retirement, young people have the benefit of time on their side. That’s why financial experts may suggest younger workers consider growth-oriented options.

Beyond the mandatory contributions paid by your employer, you can also make voluntary contributions to your super account. You should also consider your financial circumstances, eligibility and contribution caps that may apply. 

There are a few key reasons voluntary contributions are worth considering:

Once money goes into super, you generally can't access it until you reach retirement age. So that’s something you need to be comfortable with before you make a voluntary contribution.

You should also consider your financial circumstances, eligibility and contribution caps that may apply.

How much super is “enough” depends entirely on the lifestyle you want in retirement.

The Association of Superannuation Funds of Australia (ASFA) estimates that for a “comfortable” retirement, a single person needs around $595,000 and a couple needs $690,000 (as of 2025 figures). A “modest” retirement requires significantly less.

But these figures will change by the time you retire, adjusting for inflation and cost-of-living changes.

The good news: even small actions today can make substantial differences later, thanks to compound growth (earning returns on your returns).

A simple way to understand compounding growth is to imagine a snowball rolling down a hill. It may start small, but the longer it rolls, the bigger it gets. That’s because it’s adding layer after layer. The snowball represents your balance, and the layers represent the compound returns. 

That’s why starting with any amount, as soon as you can, gives you the best results by retirement.

Here are four practical steps worth considering:

1. Check which fund you're with, and if you need to consolidate your super. Check your super fund, or log onto myGov and link your ATO account to find out what super you have.

2. Review your investment option. Research your fund’s options and consider whether a different allocation might better suit your current life stage. 

3. Explore the government co-contribution. If you make voluntary after-tax contributions to your super, the Government may even chip in extra money if you're eligible.

4. Download your fund's app. Just like tracking your savings, being able to see your super balance and contributions can make it feel more real and help you stay engaged.

Super might feel distant, but it's very real money that's working (or not working) for you right now. You don’t need to become a financial expert to understand the basics, but the decisions you make in your twenties could literally be worth thousands by retirement.

This newsletter contains general information only and doesn't consider your personal situation. Read your super fund's Product Disclosure Statement and consider seeking financial advice if needed.

Retirement might feel a long way off, but taking a few minutes to check in on your super now can make a big difference later. 

Your super could end up being one of your biggest financial assets - so it’s worth more than a ‘set and forget’. 

As Australia’s largest super fund, AustralianSuper has a range of easy digital tools to help you stay on top of it. A good place to start? Try the Super Snapshot - it’s quick, simple, and gives you practical steps to help you get more from your account.

Everyone’s super situation is different, so consider what’s right for your personal circumstances and seek advice if you’re unsure.

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