How compounding can help super grow

ClubCOLLECTIVE November 2025

If you're eligible, when you’re working your employer needs to contribute a minimum of 12% (from 1 July 2025) of your pre-tax income to your super account to help fund retirement. This is known as the Superannuation Guarantee.

How compounding and super works

Compound interest is the process where interest earns interest over time, which can help savings or investments grow faster. It’s like a snowball rolling downhill, it starts off small but grows bigger with time. 
In super, compounding happens when returns are earned on the whole balance. As a super fund reinvests those returns, it helps the balance grow.

Investing for the long term

Super is a long-term investment. While markets can rise and fall, over time they tend to grow. The longer money stays invested, the bigger the effect that compounding can have on retirement savings.

Read more about compounding 

Contact Information
Name: Shane Skeen
Title: Partnership Manager 
Mobile: 0417 248 628
Email: sskeen@australiansuper.com 
Website: https://australiansuper.com

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