There are positive benefits to saving for your retirement:
- Pay less tax. Super contributions are taxed at 15% so, depending on your income, contributing to super could help you save tax.
- Get better returns. Superannuation investments generally perform better than other interest-bearing accounts, which means faster growth over time.1
- Grow your savings. Small amounts invested consistently have the potential to grow over time – that’s the magic of compounding returns.
As an extra incentive, if you earn less than $60,400 a year and make after-tax contributions to your super, you might be eligible for the government’s co-contribution scheme. If you qualify, a maximum of $500 could be paid directly into your super each year.
By starting early and staying focused on your retirement goals, you’re giving yourself the best chance to achieve financial stability.