I had no idea where my lost super was or the names of the funds. I just new it was scattered everywhere and I should definitely have more than $3,000 in my super. Australian Super Finder found all 7 of my funds and now my balance is almost $50,000. Thank you so much for getting my super back on track. ? Leonie, Thomastown VIC

Super Facts and Tips

3 Reasons To Consider Salary Sacrifice

A individual who earns $90,000 per year and has $120,000 savings in super will be able to improve on their super balance at 65 by an enormous $42,000 - all for an investment of around $31 a week in return pay.

1. Boost Your Super
Salary sacrifice is a very easy way to conserving extra super money, potentially leaving you thousands of dollars more in time. It works like this. You ask your company to pay some of your pre-tax salaries as super, rather than as a typical payment. That money goes into your super account, along with the regular super guarantee payments your employer has (currently 9.5 % of your salary).

A small addition will make a big difference down the road. According to ASIC's MoneySmart Superannuation Calculator, a 50 year old earning $90,000 a year with $120,000 in super can increase their super-equilibrium at 65 by a massive $42,000, just by salary sacrificing an additional 3 % of income annually, all for an investment of around $52 a week before tax, or concerning $31 less in contributions.

2. Save on tax.
That brings us to the 2nd big benefit of salary sacrifice: tax cost savings. Because salary sacrifice contributions originate from your pre-tax revenues, they minimise your assessable income for tax obligation purposes, helping you pay less income tax annually.

And provided you stay under your concessional contributions cap (presently $35,000 a year for those over 49 on 30 June 2014, and also $30,000 a year for everyone else) your income sacrifice payments are set to only 15 %. As long as your marginal tax rate is over 15 %, that upper tax price might allow you to develop larger savings than an after-tax investment, for the same payment in advance.

For instance, if your tax obligation rate is 39 % (consisting of the 2 % Medicare), you could save 24 % in tax on the quantity you put into super through salary sacrifice, helping you in building your savings much faster.

3. Retire comfortably.
The issue here, for many of us, is that super employer payments alone are unlikely to be enough to provide us with a comfortable way of life in retirement.

Based on the Association of Superannuation Funds of Australia, a single person will need around $430,000 in the present dollars for a comfortable retirement while a couple will need $510,000. The unfortunate reality is that, unless they act, many Australians will certainly lose - especially now the government ceased increasing in the super guarantee price till 2021.

By paying a little additional amount into your super through salary sacrifice, you could have enough money for a comfortable and secure future while just making a little difference in your take-home pay.

How to Getting Going

A financial advisor will help you decide if the salary was sacrificing is the appropriate option for you, after that exercise the best strategy for your circumstance and retirement goals. If your consultant recommends that you go ahead with salary sacrifice, the next step is to see whether your company provides salary sacrifice as an alternative. Contact us at 1300 252 167 for advice.

All information on this website is of a general nature only. We have not taken into account your financial situation, needs or objectives. You need to make up your own mind and ascertain yourself if it is right for you. We recommend you read the product disclosure statement(s) and the financial services guide before making any financial decision.

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