Your Age, Your Superannuation, it is all About You.

By Jason Fittler

If you are younger then 30 years old you should have you super invested in investments that are more aggressive. Why? More risk means more return, you have 30 years before retirement, make your super work as hard as you. If you invested $100,000 at 8% return it becomes $1 Million after 30 years. The same funds placed in a higher risk investment of 12% would net you $3 Million. It is simple maths.
 
If you are between 30 and 40 years old and making over $100,000 pa salary sacrifice will save you tax. Do you want to save tax? You will also be able to retire sooner. Do you want to retire? If you are making $50,000 per annum and $100,000 in super invested at 12%, with just your employer contribution at age 60 years you would have $1.3 Million. If you sacrificed $400 per month, this would grow to $1.6 Million.

If you are between 40 and 50 years, you should look to continue your salary sacrifice but increase it to a larger portion on your salary. Why? Because you have less time. It is simple math; to reach your retirement goal sooner you need to put in more effort and money. Remember the ant and the grasshopper!

If you are between 50 and 60 years old, start making non-deductible contributions into super. Super is a far more efficient tax environment with a flat rate of 15%. Normally at this stage in your life, you have excess disposal income, stop wasting it, and focus on your super so you can stop working. You can put up to $150,000 per year this way.

For more information about what you should be doing contact us on 07 4771 4577.