What does superannuation mean?
Superannuation means a pension or retirement benefit paid to someone after leaving employment, especially under an occupational scheme. The word is most common in British and Australian English and is less frequently used in American English, where pension is the usual term. Its senses overlap: historically, superannuation could denote both the benefit received by a retired person and the process of retiring an employee. Australian usage has developed a broader financial sense, in which superannuation refers to a retirement-savings scheme, the contributions made into it, or the superannuation fund itself. These savings are generally invested until retirement and may later provide income through a pension or withdrawal. In documents discussing employment benefits, occupational superannuation commonly refers to a retirement arrangement provided through an employer or an industry superannuation fund.
nounA pension or retirement benefit payable to an employee after retirement. In Australian English, it also refers to a retirement savings scheme or the accumulated funds intended to provide retirement income.
- A pension, retirement allowance, or other benefit paid to a person after retirement.
- The action or process of retiring an employee or former employee.
- In Australian English, a superannuation scheme or the retirement savings held within one.
"After thirty years with the company, her superannuation provided a modest income in retirement."
"The company contributes to the employees' occupational superannuation."
"In Australia, she invested part of her salary through a superannuation fund."
"The board approved the superannuation of two long-serving employees."
The plural is used when referring to separate retirement benefits or arrangements.
"The two superannuations were substantially different."
In Australia, superannuation is not merely a pension: it is the entire retirement-savings system built for life after work.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does superannuation come from?
The word comes through Latin and French rather than Old English. Its Latin base combined the prefix super-, meaning beyond or above, with annus, meaning year, in a formation referring to being beyond a certain age or period of service; French superannuation developed from that root into the modern sense of retirement or pension.
Related word forms
How superannuation is actually used
The term is used chiefly in British and Australian English and is less common in American English, where pension or retirement benefits is normally preferred. In Australian financial contexts, superannuation often denotes the wider retirement-savings system, including contributions and investment funds.
Easily confused with superannuation
Superannuity is a less common noun for a superannuation payment or pension, while superannuation is the standard term in British and Australian usage.