amitsinha Started The Discussion:
Hello everybody what i want to know this time around is whether there is any difference between SUPERANNUATION and Retirement or are they one and the same thing Regards Amit Kumar
Dear Amit,
Superannuation is retirement from the service on attainment of specific age. The competent authority(central or state govt.) decides on the age limit for different posts. Currently this is 58 years for many states. Superannuation is retirement on attaining specific age.

On the other hand retirement can take place at any age. Any employee can choose to retire anytime in his career. People working in defence retire very young and earn pension also. VRS/CRS are retirement schemes. So, retirement can be compulsory but superannuation is always automatic and predictable.

Hope this will be useful to you.

I B Mahapatra
I am not sure if this is correct. Superannuation seems more like a cummulative part of salary given after a period of time to improve retention in companies. I do not think it is the same as retirement/loyalty bonus etc.

Superannuation is fixed by the respective companies. Some may have 5 years, some may have 8 years. After such period if a employee resigns he/she is eligible of Superannuation which my be taken monthly or partial and partial by month or even full can be withdrawn. Whereas retirement age is only 58/60 again this is dependes on the company rule.

To my knowledge this is is the one. I do not know anyway if this is correct.

Superannuation is a form of savings where money is set aside by you and/or your employer and invested for your retirement. It is generally an ideal way to invest money for your retirement. Many funds also pay benefits if you die, or if an illness or accident makes you unable to work.

Your retirement savings grow because money is paid in regularly and invested at a concessional rate of tax. Tax concessions and other government benefits currently make superannuation one of the best long-term investments.

Contributions paid into a complying superannuation fund are typically invested in a range of assets, such as property and shares.

The key features of superannuation are:
your employer must contribute 9% of your earnings base to your fund
money from your superannuation account can usually be taken out only at retirement, and it is generally taxed at a lower rate compared to other forms of investment.

A retirement savings account is a superannuation account offered by a bank, building society, credit union or a life insurance company. Retirement savings accounts differ from other superannuation funds because they donít have a trust structure and are run like a bank account

Hope this would have helped u :)

Cheers, :idea:
Dear Dhanjit,

Thanks for your inputs on Superannuation
Still i ve some doubts to it...
can you please clarrify it

1. Is this Superannuation Account created by employee or employer
2. Is it mandatory to remit this amount (9%) towards employees by the
coy like Public or Private
3. Is 9% is from Entire CTC or Basic alone
4. Since when this amount is remitted to the individual superannuation
acount, either starting from DOJ (joining) or any specific time frame in
the tenure
5. Is Retirment Account and Superannuation Account one and the same.

Earnestly waiting for your reply
i may sound very silly but still....

Hope im not troubling you
forgive me



On attaining the specific and prescribed age, a person will get retired autormatically. For example 58 or 60 years depending upon the State and Central Government. The administrative staff in the state government will be 58 and 60 will be for the Central Government. For academic community, it is 60 / 62 years.

Voluntary retirement:

It depends the employee concerned within the frame work of the rules. On attaining the 20 years of service, person can apply for volunatry retirement. Some time, the organisation itself can give VRS with the certain benefits. If a person from Central Govt. resigns after completing 20 years of service, he will be given additional weightage of 05 years for getting the terminal benefits.

Some time, the governmnet it self, on public interest, give VRS to the employee.

In case you want more details, i will provide.

wishes always

senthil raj
Retirement age as per company rules . Superannuation age they can define for the benefits. Regards Sujatha R


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