Superannuation Strategies for All Age Groups

If you are younger then 30 years old you should have you super invested in more aggressive investments. Why? More risk means more return and as you have over 30 years before you can use your super make it work hard for you now. For example $100,000 invested at 8% return for 30 years would net you $1 Million in 30 years. The same funds placed in a higher risk investment of 12% would net you $3 Million. It’s simple maths.
If you are between 30 and 40 years old you should be looking to make extra contributions through salary sacrifice into super. Why? This will build you super quickly and save you some tax. Example… If you are making $50,000 per annum you have $100,000 in super invested at 12%, with just your employer contribution at age 60 years you would have $1.3 Million in super if you sacrificed $400 per month this would grow to $1.6 Million and you would save tax.

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, this is the time to really start to build this investment.

If you are between 50 and 60 years old now is the time to look at making non-deductible contributions into super. These are contributions neither you nor your employer can claim a tax deduction for. Why put these funds into super? Super is a far more efficient tax environment with a flat rate of 15%. Normally at this stage in your life you are making more money then you ever have and are on a higher tax rate.  You can put up to $150,000 per year this way.

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