Super contributions help secure your future
Superannuation | 21/01/2016 |
3 min duration
Superannuation is designed to replace your income when you retire. But the way you approach your super and the strategies you employ can have a huge impact on your future balance.
As Equip’s Emma McCosh explains in the video below – government regulations stipulate that 9.5% of your income should be going towards super. However, many financial experts (and at least one former Prime Minister), suggest that you need to contribute around 15% of your income to properly fund your retirement.
This gap means that even if you regularly pay 9.5% of your salary into super, you may not have enough money to support your retirement lifestyle.
As Emma notes, the best way to secure your future, and ensure you have enough for retirement is to contribute a little extra when you’re younger. Doing so in your 30s will boost your long term super balance significantly more than if you were to contribute the same extra amount from 40 to 65.*
Adding an extra $20 a week to your super
To learn more about salary sacrificing and how it can help you secure your future, please visit our dedicated web page or contact our financial planning team.
*Assumptions: Employer contributions of 9.5% based on a static salary of $60,000. Extra contributions $2,000/year, either made for 10 years starting at age 30, or 25 years starting at age 40. Super account earns 7% p.a. Contributions are paid at the start of the year.
This information is provided for general information only. It does not take into account your personal objectives, financial situation or needs and should therefore not be taken as personal advice. You should consider whether it is appropriate for you before acting on it and, if necessary, you should seek professional financial advice. Before making a decision to invest in the Equipsuper Superannuation Fund, you should read the appropriate Equip Product Disclosure Statement (PDS). Past performance is not an indication of future performance.