Superannuation for under 18s

If there’s one thing I could tell my younger self, it would be to consider joining a super fund as soon as possible. The earlier you begin building your super, the more time you have for your nest egg to grow for your retirement. But what are the superannuation options for those workers aged under 18?

Can I earn super if I’m aged under 18?

Yes, you can earn super if you’re aged under 18, but there are some differences to how it works for adults.

If you’re 18 or over then the Australian Taxation Office (ATO) says your employer must contribute an amount to your super fund, based on a percentage of your earnings, known as the Superannuation Guarantee.

If you’re under 18 and employed then the ATO says you also need to work more than 30 hours in a week. This applies whether you work casual, part-time or full-time hours.

You should make sure your employer knows the details of your super fund. If you’re not already with a super fund then you can compare super funds with Canstar to help you find one that might best suit your needs.

The Fair Work Ombudsman says you should also check the minimum age you can start work in your state or territory, especially if you’re still at school.

You can check to see that you’re being paid the super you’re owed by looking at your pay slip. By law, an employer must include both the amount of super you’re paid, the date it was paid and the name of the account into which it was paid.

You can also check your super balance through your fund’s website or app, or over the phone, to make sure you’re being paid what you are owed.

What should I do if I’m not being paid any super?

If you think you aren’t being paid any or enough super, and you’re working at least 30 hours a week, then first try talking to your employer. If that doesn’t work, you can contact the ATO online or phone 13 10 20.

If you work for a few different employers, if they’re required to pay you any super contribution, then they should check to see if you have what’s known as a stapled super account.

If no checks are made then you might end up with multiple super accounts. This can impact your total super savings as you’re likely paying fees for each individual account, costing you money. If you’re not sure if you have other super accounts you can easily check for any lost super.

You could consider consolidating multiple accounts into a single account to help reduce any fees you pay. But not all providers allow you to consolidate and you’d need to check you wouldn’t lose out on any benefits by closing an account.

As a teen, it’s early days in your super journey, and you’ve likely not grown much of a nest egg. Still, it’s a good idea to keep on top of what you’ve got and make sure it’s working in your best interests.

Can I make extra contributions to my superannuation if I’m under 18

As a young worker you’re likely on a low income which could make you eligible for government contributions to your super. For example, if you make an after-tax contribution to your super you may be entitled to a co-contribution from the government of up to $500 a year, paid into your super fund.

You don’t have to do anything to claim this extra payment as, if you’re eligible, it will apply automatically so long as your super fund has your tax file number.

That’s a good early lesson on how you can get help to boost your super from an early age.

As a teen, retirement may seem a long way off, but a bit of extra work in your early years can pay dividends later in life.

Cover image source: Monkey Business Images/Shutterstock.com