With both you and the Government adding to your account you could be thousands of dollars better off
Here's an example of how it works:
Mandy is 30, and earns $30,000 a year. She and her husband are planning a family over the next few years which means she’ll be taking a couple of years off. Mandy has an idea that she’ll retire at 65, and didn’t think she needed to contribute any additional money to her super. At this rate, with a few years off after the family gets started, she’ll have a benefit of around $335,000.
Adding just $20 a week to her account could see her almost a quarter of a million dollars better off! Why the difference? As well as making her own extra contributions, the Government through the co-contribution has topped-up Mandy’s account. For the next few years it is worth $20 extra a week, but when the co-contribution reaches its matching rate of 150% it will be worth an extra $29 a week. As shown below over time this makes a big difference.
Don't get caught short - start making your contributions early so you don't miss out. Click here to find out how.
Calculations based on an investment return of 6% per annum (net of all fees, expenses and taxes) and compounded over 35 years (not including inflation on salary, with a four year career break between age 34 and 37 in which no super contributions will be paid). Salary has not been indexed. The temporary reduction in the co-contribution between 2009/10 and 2013/14 has been taken into account. This information is of a general nature only and eoes not consider your individual objectives, circumstances or needs. The past performance information included is not a reliable indicator of future performance. We suggest you consider this information in light of your own circumstances, and seek financial advice if required.