Your super is designed to help you save for retirement, and by having an idea of your possible income in retirement today, you are better placed to make decisions about growing your super before you stop working.
When we are in the workforce, retirement can seem a long way off and it can be tempting to put plans to grow your super on the backburner.
By having an understanding of the sort of income you could be looking at in retirement, you may decide to grow your super with additional contributions now. By making extra contributions over the 9.5% Super Guarantee from your employer sooner rather than later, it could make a valuable difference to your super balance when you retire.
The Australian Securities & Investments Commission (ASIC) MoneySmart ‘Retirement Planner’ calculator looks at your current age, income and the balance of your super today. It also takes into account the impact of your employer’s super contributions and investment returns on super to estimate your annual income or final super balance at retirement.
The calculator can also show the difference you could make to your super by making extra contributions today.
All you need to use the MoneySmart ‘Retirement Planner’ is the current balance of your super account, your age and the age at which you would like to retire.
Find out more about the range of strategies you can use to help grow your super. Try just one or embrace them all to boost your super savings over time.
BT Super for Life will change the way you look at your super – a personal super fund you can conveniently manage online with your everyday banking.
BT’s Easy Rollover Tool streamlines the process of consolidating your superannuation into a single, manageable account and potentially save on account keeping fees.
This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs.
Superannuation is a long-term investment. Generally, contributions to a superannuation fund are preserved. The government has placed restrictions on when you can access your preserved benefits. In general, benefits will not be able to be paid until a member is age 65, or has permanently retired and is above his/ her preservation age (i.e. 55 years up to 60 years depending on when the member was born).
It is important to remember that there are limits on the amount of contributions you are able to make without paying additional tax. The contributions caps change from time to time. Up to date information is available at www.ato.gov.au. Contributions that exceed your contributions caps may have additional tax applied to them.