OMG the Super minefield
We have a real mix AFAIK. Everyone has to contribute to a super scheme of some sort - that is compulsory and there is a minimum contribution from both employer and employee. For people who have been in super for yonks it is a no brainer - you just go along with whatever your employer offers like you have always done because chances are it isnt a bad scheme. However there are new arrangements which mean you can contribute into self managed super funds
where you really do need to know what you are contributing into. Most people go into their employer funds - I dont because I am already drawing on my super from my public service employer, I have a managed fund with my current part time job. I dont self manage but I do pick the risk level I want to invest in.
What you do with the money when you retire is up to you - with some funds (like my PS one) you take an indexed pension (based on final salary) or you take it as a lump sum and roll it into some other money making venture or you have a mixture of the both of them. A lot of people buy annuities with their second fund if their first fund makes them better off with an indexed pension (the PS had very generous provisions at one time)
The aged pension is a pittance and you really do have to be very poor to access it so most people are struggling on their super. If I had known early on what I know now, I would have been paying at least 10% into super - and I would have salary sacrificed the max into super well before I did. You can sacrifice into super (super is taken out before tax is calculated) with lower tax implications.
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