{"id":702518,"date":"2026-07-21T00:55:10","date_gmt":"2026-07-21T00:55:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/702518\/"},"modified":"2026-07-21T00:55:10","modified_gmt":"2026-07-21T00:55:10","slug":"how-to-give-your-child-a-75000-superannuation-head-start","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/702518\/","title":{"rendered":"How to give your child a $75,000 superannuation head start"},"content":{"rendered":"

It’s never too early to start saving for\u00a0retirement<\/a>,\u00a0and the good news for parents who want to give their children a head start is that, yes, it is possible to set up a superannuation fund for your children. <\/p>\n

\"Young<\/p>\n

Image source: Getty Images<\/p>\n

Superannuation fund selection is the first step<\/p>\n

Depending on your child’s age, you might need to shop around to find a fund that allows you to set up accounts for children.<\/p>\n

UniSuper, for example, only allows funds to be set up for people aged 15 and above.<\/p>\n

Student Super, on the other hand, allows a fund to be set up at any age and charges no administration fees for balances under $1000.<\/p>\n

The fund’s Golden Goose Gifting program<\/a> was specifically set up to make it easy for parents and grandparents to put money into a child’s superannuation account. <\/p>\n

Student Super Chief Executive Officer Andrew Moloney says in a video on the fund’s website that Australians generally set up a super fund at about the age of 20, but by setting up a fund early, the benefits of compound interest<\/a> can accrue for around two decades longer.<\/p>\n

In order to set up and contribute into a superannuation fund<\/a> for a child, it’s necessary to set up a tax file number (TFN) for the child also.<\/p>\n

Student Super’s website says, “Once the child’s TFN is added to their account, the parent or guardian will be able to access the details to make a contribution to the child’s super account”.<\/p>\n

The magic of compound interest<\/p>\n

And the benefits are significant. $1000 contributed when a child is born, compounded over 20 years at 8%, turns into $4661, as calculated on the Moneysmart compound interest calculator<\/a>. <\/p>\n

If $1000 more is added each year, this figure grows to $50,423.<\/p>\n

And this isn’t counting the contribution that the Federal Government will make to your child’s super account.<\/p>\n

The government makes a co-contribution to superannuation for low-income earners of $500, as long as $1000 in non-concessional (after tax) contributions are made.<\/p>\n

As the ATO says:<\/p>\n

You don’t need to apply for the super co-contribution. When you lodge your tax return<\/a>, we will work out if you’re eligible. If your super fund has your tax file number (TFN), we will pay it to your super account automatically.<\/p>\n

If $1500 is compounded at 8% over 20 years, the result is $6991; if $1500 is contributed each year for 20 years, the result is a whopping $75,634.<\/p>\n

That’s quite the head start, and while super is usually tied up until retirement age, the personal contributions can be withdrawn and used to buy a home under the government’s First Home Super Saver Scheme<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"It’s never too early to start saving for\u00a0retirement,\u00a0and the good news for parents who want to give their…\n","protected":false},"author":2,"featured_media":702519,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,4233,4176,4174,4175,56,54,55],"class_list":["post-702518","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-editors-choice","tag-finance","tag-personal-finance","tag-personalfinance","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/702518","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=702518"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/702518\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/702519"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=702518"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=702518"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=702518"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}