SUPERANNUATION FUND Meaning and
Definition
-
A superannuation fund refers to a specialized retirement savings vehicle or investment fund that is designed to accumulate and provide income for individuals during their retirement years. Also known as a pension fund or a super fund, it is established and managed by employers, trade unions, or government authorities to help individuals save for their retirement.
Superannuation funds work on the principle of regular contributions made by employees, usually through salary deductions, which are then invested in various financial assets such as stocks, bonds, and property. The earnings generated from these investments, along with the contributions, are accumulated over the years to build a retirement nest egg that can provide for the individual's financial needs after they have stopped working.
Superannuation funds often come with tax advantages, such as contributions being made with pre-tax dollars, allowing individuals to enjoy potential tax savings. Additionally, these funds are generally subject to regulations and oversight to ensure that they are managed in the best interest of the fund members.
Upon reaching the age of retirement or meeting certain eligibility criteria, individuals can access the funds accumulated in their superannuation account. Typically, this can be done through various payment options, including lump sums, regular pension payments, or a combination of both.
Overall, a superannuation fund serves as an essential tool for individuals to save and invest for their retirement, providing them with financial security and stability during their golden years.
Common Misspellings for SUPERANNUATION FUND
- auperannuation fund
- zuperannuation fund
- xuperannuation fund
- duperannuation fund
- euperannuation fund
- wuperannuation fund
- syperannuation fund
- shperannuation fund
- sjperannuation fund
- siperannuation fund
- s8perannuation fund
- s7perannuation fund
- suoerannuation fund
- sulerannuation fund
- su-erannuation fund
- su0erannuation fund
- supwrannuation fund
- supsrannuation fund
- supdrannuation fund
Etymology of SUPERANNUATION FUND
The term "superannuation fund" derives from two Latin words, "super" meaning "above" or "over" and "annus" meaning "year". The word "superannuation" was initially used in the late 17th century, referring to the act of retiring on a pension after reaching a certain age or completing a particular number of years in service.
In the context of a "superannuation fund", the term refers to a pension fund or retirement savings plan where contributions are made by an individual or employer over a person's working life. The accumulated funds are then accessed upon retirement to provide income or support during the individual's later years. The word "fund" simply signifies a sum of money set aside for a particular purpose, in this case, retirement.
Infographic
Add the infographic to your website:
