SUPERANNUATION Meaning and
Definition
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Superannuation is a noun that can be defined as a system wherein individuals save and accumulate funds during their working years to ensure a stable and secure retirement income. It is often referred to as a pension plan or retirement savings scheme. The main purpose of superannuation is to encourage individuals to save for their retirement and reduce the burden on government-funded pensions.
Employers usually contribute a certain percentage of an employee's salary towards their superannuation account. These contributions, along with any additional voluntary contributions made by the individual, are invested in a variety of assets such as shares, property, and fixed income securities. The accumulated funds grow over time through capital appreciation and income from these investments.
Superannuation funds are typically managed by financial institutions like banks, insurance companies, or specialized superannuation fund managers. Individuals have the flexibility to choose the investment options within their superannuation fund based on their risk tolerance and investment goals.
Access to superannuation funds is typically restricted until retirement age, which is usually determined by the government. At retirement, individuals can access their superannuation as a lump sum withdrawal, as regular income streams, or a combination of both, depending on the rules and regulations governing the superannuation fund.
Superannuation is an important component of financial planning as it helps individuals accumulate wealth for their retirement years, providing them with financial stability and independence during their post-employment period.
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State of being too old for office or business.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
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Other Common Misspellings for SUPERANNUATION
Etymology of SUPERANNUATION
The word "superannuation" has a Latin-based etymology. It comes from the combination of two Latin words: "super" meaning "above" or "beyond", and "annus" meaning "year". The Latin term "superannuare" was used to refer to the act of setting aside or retiring something after a certain number of years. Eventually, this term evolved in English to become "superannuation", which refers to the act of setting aside money or assets for retirement or old age.
Similar spelling words for SUPERANNUATION
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