Increase your contributions
One way to increase the amount you will have when you retire is to increase the amount you contribute regularly to your super.
It is compulsory for employers to contribute 9% of your salary as superannuation, but many people will require more than that to live comfortably in retirement.
Depending on your circumstances, many advisors recommend that you contribute an additional 6% of your salary to super, to make it a total of 15%. You can do this by making personal after-tax contributions or through salary sacrifice.
Assumptions
Both investors retire at age 60.
Calculations do not take taxation into consideration and assume that both investors earned 8% every year. The results may vary if different dollar amounts are invested and if the return earned is higher or lower than 8% per annum at different times.
The savings amount is an illustration only and is not a prediction or estimate of the actual savings you can achieve.
Top up your super
Topping up your superannuation can make a lot of sense. Not only will you boost its growth, you will also be taxed at a concessional amount compared with other investment options.
Depending on your circumstances, it can be a good idea to contribute one-off payments, such as employment bonuses, to your super.
Assumptions
Both investors retire at age 60.
Calculations do not take taxation into consideration and assume that both investors earned 8% every year. The results may vary if different dollar amounts are invested and if the return earned is higher or lower than 8% per annum at different times.
The savings amount is an illustration only and is not a prediction or estimate of the actual savings you can achieve.
Start early
The earlier you start making regular contributions, the better off you may be. Not only will you have more time to accumulate, you’ll also benefit from compound returns on your earlier investments. This means you’ll not only earn interest on the money you contribute, but also on the cumulative interest earned on those funds.
Assumptions
Both investors retire at age 60.
Calculations do not take taxation into consideration and assume that both investors earned 8% every year. The results may vary if different dollar amounts are invested and if the return earned is higher or lower than 8% per annum at different times.
The savings amount is an illustration only and is not a prediction or estimate of the actual savings you can achieve.
Consolidate your super
If you have more than one super fund, perhaps because you have changed jobs, it is generally better to roll them into one. This can reduce administration fees and makes it easier to manage, because you’ll receive statements from one company. Before consolidating your super, you should check to see if there are any benefits that you may lose when leaving a fund, such as insurance or access to a financial planner.
Be better off
ANZ Financial Planners are dedicated to providing you with information so that you can make the decision that is right for you.
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