Australia's superannuation system is one of the most innovative and effective retirement savings systems in the world. Unlike traditional social security programs that rely heavily on government-funded pensions, superannuation is a mandatory, tax-efficient savings system designed to provide Australians with financial security in retirement.

Superannuation is so unique and successful that it deserves its own dedicated discussion separate from Australia's social security system. Its structure ensures that more Australians become self-funded retirees, reducing dependence on government pensions. This model, established in the 1980s, has transformed the retirement landscape and now manages over $4.2 trillion in assets (as of 2025).

This booklet explores how superannuation works, its tax benefits, why it is superior to the 401(k) system in the U.S., and how it has positioned Australia as a leader in global retirement savings.