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

Three Reasons to Consider Salary Sacrifice

Increase your Super

Salary sacrifice is an easy way to save additional superannuation money every payday, possibly leaving you with more money over time.

It works like this. You ask your company to pay a few of your pre-tax income as super, instead of regular pay. That cash goes straight into your superannuation account, along with the regular super warranty contributions your employer makes (currently 9.5% of your salary).

Just a little extra at present could make a huge difference down the track. According to ASIC's MoneySmart Superannuation Calculator, a 50-year-old earning $90,000 a year with $120,000 in superannuation could increase their super balance at 65 by a massive $42,000, simply by salary sacrificing an additional 3% of salary each year. All for an investment of around $52 a week before tax, or about $31 less a week in taking home pay.

Save Money on Tax

That brings us to the 2nd big benefit of salary sacrifice: tax cost savings. Because salary sacrifice contributions come from your pre-tax revenues, they reduce your assessable earnings for tax purposes, helping you pay fewer earnings tax each year.

Even much better, as long you stay under your concessional contributions cap (currently $35,000 a year for those over 49 on 30 June 2014, and $30,000 a year for everybody else) your wage sacrifice contributions are taxed at just 15%. As long as your marginal tax rate is over 15%, that lower tax rate might allow you to produce a much bigger nest egg than an after-tax financial investment, for the same contribution in advance.

For example, if your tax rate is 39% (consisting of the 2% Medicare Levy), you might conserve 24% in tax on the quantity you take into superannuation via salary sacrifice, assisting you in building your cost savings faster.

Retire In Comfort

That matters since, for some us, company superannuation contributions alone are not likely to be enough for a comfortable way of life during retirement.

According to the Association of Superannuation Funds of Australia, a bachelor will need about $430,000 in today's dollars for a comfortable retirement, while a couple will need to acquire $510,000.3 The regrettable reality is that, unless they take action, a lot of Australians will lose - especially now that the federal government has frozen increases in the super guarantee rate till 2021.

By paying a little bit of extra money into your super now through salary sacrifice, you can assist your fund in providing you with a more comfortable and safe future, while just making a little difference to your take-home income.

Ways to Getting Started

A financial advisor can help you choose if salary sacrifice is the ideal solutions for you, then use the ideal strategy for your individual situation and retirement goals.

If your advisor suggests that you go ahead, the next action is to examine if your employer provides salary sacrifice as a choice. If they do, it's as easy as filling in a document. Then you can kick back and see your super grow.

We have a ton of articles about salary sacrifice on our knowledgebase at www.australiansuperfinder.com.au

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