30 Nov Making your superannuation work for you
The superannuation system is still the best medium to tax effectively save for retirement provided your choose the assets that are right for you. It’s about getting active with your superannuation choices and taking an active interest in your super.
In my experience, Australians take an interest in superannuation when their valuation reaches around $80,000. I’m not sure what the thinking is here and whether there is any statistics to back this up, but my experience is that the transition from a super balance that is in the 70’s to the magic 80’s creates interest.
Let’s say you have 35 years to run to retirement with a starting super balance of $1,000 and your are earning $50,000 a year. At 9% annual return in a growth to aggressive to fund assuming 9.5% employer contributions are begging made and 15% tax and you are looking at $970,000. Add $100 a month of your own money and claim a tax deduction on it and we go to $1,200,000. Add $200 a month and we are at $1,450,000. Get the asset mix that is right for you and make your superannuation work for you.