Money Magazine brings back Super Booster Day

Money Magazine has partnered with The Association of Superannuation Funds of Australia to launch its Super Booster Day campaign.

The announcement:

The Association of Superannuation Funds of Australia (ASFA) and Money Magazine have once again joined forces to bring back the Super Booster Day campaign, to highlight the long-term benefits of making additional contributions to super.

Fewer than five per cent of Australians aged under 45 are currently contributing extra to their super. That coupled with a shortfall of $25,000 a year for couples and $20,000 a year for singles between the full Age Pension and what it costs to have a ‘comfortable’ lifestyle in retirement, means Australians need to act now and start boosting their super.

According to ASFA’s Retirement Standard, to have a comfortable lifestyle, single people need $545,000 in retirement savings and couples need $640,000.

At this time, fewer than 20 per cent of single people and 30 per cent of couples aged over 65 are able to achieve this at retirement. Currently, the average super balance at retirement is $292,500 for men and $138,150 for women – a big gap from the current ASFA ‘comfortable’ level.

Money magazine editor Effie Zahos said, “I’ve always been a strong supporter of topping up your super and I encourage all Australians to take advantage of the tax benefits it has to offer.”

“You can enjoy tax savings if you top up your super using your pre-tax income. These contributions are generally taxed in the super fund at a maximum rate of 15 per cent. In most cases, this tax rate is less than the marginal tax rate. If you can’t make regular payments, a one-off after-tax contribution can help you supercharge your wealth,” she said.

From 1 July, you will generally be able to claim a tax deduction for a personal contribution to super without needing to set up a salary sacrifice arrangement with your employer.

ASFA CEO Dr Martin Fahy said Australians should invest in their super to reap the rewards of the magic of compound interest.

“It’s particularly important for young people and women to engage early with super,” he said.

“It’s an ideal way to build wealth and even small amounts can make a big difference in the long term.”

If you’re 40, have $50,000 in super, earn $70,000 a year and only rely on the Superannuation Guarantee, by the time you’re 67 you’ll have $388,000 in super.* That’s around $150,000 less than you need to lead a comfortable lifestyle.

So to pay yourself forward and for a range of information, tips, checklists and links to SuperGuru calculators, visit <http://www.superboosterday.com.au> www.superboosterday.com.au before 15 September 2017 and follow the three-step guide to make a pledge.

Source: Jackie Evans Publicity


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