Building wealth doesn’t have to be complicated or mean making big sacrifices. Adding just $10 extra per week to your super could significantly boost your savings for the future.
Do you plan on saving more for your future but find life keeps getting in the way?
With almost half of Australians reportedly living pay-cheque to pay-cheque^, it seems many of us will struggle to put our saving plans into practice.
Building wealth doesn’t have to be complicated or mean making big sacrifices. Adding just $10 extra per week to your super could significantly boost your savings for the future. The more you can contribute, the more this effect is multiplied by compound interest as your savings grow.
Just look at the difference regular contributions could make to your super balance.
Could you spare $10 per week?
| By contributing $10 per week (after tax), you could save*: | |||
| Period of investment (years) | 10 | 20 | 30 |
| Amount saved | $6,102 | $14,664 | $26,680 |
How about $20?
| By contributing $20 per week (after tax), you could save*: | |||
| Period of investment (years) | 10 | 20 | 30 |
| Amount saved | $12,203 | $29,328 | $53,360 |
$50?
| By contributing $50 per week (after tax), you could save*: | |||
| Period of investment (years) | 10 | 20 | 30 |
| Amount saved | $30,508 | $73,320 | $133,401 |
$100?
| By contributing $100 per week (after tax), you could save*: | |||
| Period of investment (years) | 10 | 20 | 30 |
| Amount saved | $61,015 | $146,641 | $266,802 |
Whatever you can spare out of your weekly budget, it’s important to start saving sooner rather than later. Your future self will thank you.
Please contact us on 08 8223 3774 if you would like to discuss.
Important information
Information is current as at 14/09/2016 and may change. Forecasts are not guaranteed to occur.
Source: MLC 14 September 2016
^ MLC & IPSOS, Australia today report, Feb 2016.
*Assumptions:
- The weekly contribution is made as a single annual contribution (eg $10pw is made as a $520 contribution 1x pa).
- The individual is eligible to contribute to super for each year of the entire period.
- Individual makes after tax contributions (i.e. Non Concessional Contributions). [As such the amount contributed is the amount invested].
- Investment returns are growth 4% pa, income 3% pa, franking credits nil.
- Investments are still held at the end of the period.
- Investment income is taxed at 15%.
- Result is in today’s dollars.
Any advice in this post is of a general nature only and has not been tailored to your personal circumstances. Please see personal advice prior to acting on this information.