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

The Benefits of Salary Sacrifice for Superannuation

This isnít a question that has a straightforward question because everyoneís situation is a bit different from the other.

But in this section we are going to reveal some of the outcomes in investing into super and then it would be up to you to weigh your decisions on whether you would put money on salary-sacrifice on choose other super investment options.

Deciding on Debt or Superannuation

Of you are deciding on whether to pay on debt or put money on superannuation, then itís safe to assume that you actually had some spare money left in you that you havenít spent. So letís say you have a $1,000 that you have saved, and you know you donít need for your essentials. And then letís say somebody is earning $70,000 a year.

So if you have a thousand dollars, you know that you can save it. Itís still coming from your employer. Now if you are getting it from your employer as salary wages, then clearly you have salary tax which is 32.5%. So after you have acquired a thousand dollars your employer will pay up 32.5% for tax and you will end up with $675 left to save or to pay on debt. Now thatís on the savings side of the equation.

The other side of the equation is superannuation. So if you are going to salary sacrifice on superannuation with a thousand dollars, your employer would only be paying a tax rate of 15%. And thatís the major benefit of superannuation, unless people think the major benefit is investments. So investing a thousand dollars into superannuation will leave you with $850 left in your savings.

As you can see, thatís a significant improvement when compared to having only $675.

And in fact, if you want to invest that $675 to grow back to $850, you need to get 25.95% return on an annual basis. So that type of return, although it can be achieved from time to time, is pretty tough to get. On average, people usually only get 8.5% return from their assets.

That is the case of $1000 contributions per year. Think of the benefits and money you will save in many years to come with superannuation. It is also important to take note that superannuation is designed for the long-term. Thus, you can only acquire it once you reach retirement age.

If you find this information useful, then you might like to check out other useful information found in our site at: www.australiansuperfinder.com.au

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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