Meaning of Word
Superannuation refers to a system or arrangement for saving money for retirement, typically involving regular contributions to a fund that will provide income once a person stops working. It can also refer to the act of retiring or the benefits received upon retirement.
Definitions and Meaning in English
- Superannuation (noun): A regular payment made to someone after they retire from work, often based on a pension scheme or retirement fund.
- Superannuation (noun): The system of saving for retirement through contributions to a retirement fund, often managed by an employer or government.
- Example: “He is relying on his superannuation to support him after retirement.”
- Example: “The company provides a generous superannuation plan for its employees.”
History and Origin
The word “superannuation” comes from the Latin superannus, meaning “over the age” or “too old,” which is derived from super (meaning “above”) and annus (meaning “year”). It originally referred to someone being too old to continue working, thus retiring. Over time, the term evolved to encompass the practice of setting aside funds during one’s working years to provide financial support in retirement. The concept became formalized in the 19th century with the introduction of pension plans and retirement savings systems in many countries.
Detailed Explanation
Superannuation is a common term used in many countries, particularly in Australia and the UK, referring to retirement savings plans or pension schemes. It is designed to provide income to individuals once they reach retirement age, typically after having worked for several decades. Contributions are usually made regularly during a person’s working life, often deducted from their salary and sometimes matched by the employer or government.
In some regions, such as Australia, superannuation is mandatory for workers, meaning employers must contribute a percentage of the worker’s salary to a retirement fund. The funds in these accounts are then invested, with the goal of providing a secure income in retirement. In many cases, the system includes tax advantages to encourage saving for retirement.
Example Sentences
- His superannuation fund grew steadily over the years, ensuring a comfortable retirement.
- The company offers a competitive superannuation plan with matching contributions.
- Many employees rely on superannuation to fund their post-retirement lifestyle.
- She contributed a portion of her salary to superannuation every month.
- The government has introduced new regulations to improve the superannuation system.
- He plans to access his superannuation when he retires at 65.
- Superannuation funds are typically invested in a range of assets to increase returns.
- The superannuation scheme is one of the key benefits offered by the company.
- It’s important to start contributing to your superannuation early to maximize returns.
Synonyms with Short Explanation
- Pension: A regular payment made to a person after retirement, typically from a government or employer.
- Retirement fund: A financial account set up for saving money to provide income after retirement.
- Annuity: A fixed sum of money paid to someone each year, typically for the rest of their life, as part of a retirement savings plan.
- 401(k): A specific type of retirement savings plan in the U.S. where employees contribute a portion of their salary, often with employer matching.
- Endowment: A financial fund or investment that can provide ongoing income, often used in the context of retirement savings.
Related Words with Short Explanation
- Retirement: The action or process of leaving one’s job and ceasing to work, usually due to age.
- Investments: The act of putting money into assets, such as stocks or bonds, with the expectation of earning income over time, often linked to superannuation plans.
- Contribution: A sum of money given regularly to a pension or superannuation fund.
- Savings: Money set aside for future use, particularly for retirement or long-term goals.
- Income: The money earned, typically from employment, investments, or retirement funds, to support living expenses.
More Matches with Short Explanation
- Trust fund: A legal arrangement where assets are held by a third party for the benefit of another, often used in retirement planning.
- Tax-deferred: A status of certain retirement accounts where taxes are postponed until funds are withdrawn.
- Benefit plan: A program that provides financial support, such as healthcare or retirement income, to employees or individuals.
- Superannuation scheme: A structured plan that outlines how funds are managed and paid out in a superannuation system.
- Withdrawals: The act of taking funds out of a superannuation account, typically after reaching retirement age.
Antonyms
- Unemployment: The state of being without a job and, by extension, without income or a pension plan for retirement.
- Debt: Financial obligations or money owed, contrasting with saving for retirement in a superannuation fund.
- Short-term savings: Money set aside for immediate needs, as opposed to long-term savings for retirement.
- Spending: The act of using money for immediate consumption rather than saving for retirement.
- Financial instability: A state of having insufficient financial resources, which can prevent saving for superannuation or retirement.
