Did you know that giving up one coffee a day could mean around $94,0001 extra in super!

It goes to show pouring more into super doesn’t have to break the bank. As well as potentially increasing the amount of savings in a retirement nest egg, making additional contributions may deliver some handy tax incentives.

There are a number of ways to make additional contributions into super. Which approach is best for you may depend on your income, time to retirement and overall financial situation. Some of the strategies that could be adopted include:

  • after-tax contributions;
  • Government co-contributions;
  • salary sacrifice contributions; and
  • spouse contributions.

What’s next?

To learn more about how to make additional contributions into super, check out the Voluntary contributions site. Here you will find:

  • information on the different types of additional contributions you could make into your super;
  • a case study example of the impact additional contributions could have on retirement savings;
  • voluntary contributions calculators; and
  • steps on how to make additional contributions into super. 

Phone:

   1300 55 7586

Email:

   service@plum.com.au

Assumptions

1 Assumption: Based on a male aged 30, with a $20,000 super balance earning $50,000 p.a. If one cup of a coffee a day (costing $3.50) was given up and paid into super each year (approximately $1,280 p.a.) until retirement (at age 65). Invested in a balanced portfolio with an earning rate before management costs and tax of 8%. Fund fees consist of a management cost (% of accumulation) of 0.55%, $52 management fees p.a. and $78 insurance premiums p.a. Assuming contributions are paid monthly and Government co-contributions are included. Source: http://www.asic.gov.au/fido/fido.nsf/FIDO%20CalcW?
readForm&title=Super%20calculato

Disclaimer

An interest in the Plum Superannuation Fund ABN 20 339 905 340 (Fund) is issued by PFS Nominees Pty Ltd ABN 16 082 026 480 AFSL 243357. An interest in the Foster’s Group Superannuation Fund ABN 60 171 679 448, Mars Australia Savings Plan ABN 94 286 873 438, Nufarm Employees Superannuation Trust ABN 59 619 787 509, Pilkington (Australia) Superannuation Scheme ABN 83 020 354 801, Lend Lease Superannuation Fund ABN 50 237 822 837, or Vanguard Personal Superannuation Plan ABN 81 550 468 553 (Fund) is issued by CCSL Limited ABN 51 104 967 964 AFSL 287084, Mars Australia Superannuation Pty Limited ABN 35 008 452 640 AFSL 294732, Nufarm Employees Superannuation Pty ABN 27 065 475 443, PASS Pty Limited ABN 27 064 778 481, Tower Investments Pty Limited ABN 22 000 570 892, or Vanguard Investments Australia Ltd ABN 72 072 881 086 AFSL 227263 (Trustee) respectively. The Fund administrator is Plum Financial Services Limited ABN 35 081 812 731 AFSL 243356 (Administrator). This material has been prepared by the Administrator and it contains information that is general in nature. The information does not take into account your objectives, financial situation or needs. Before acting on the information you should consider whether it is appropriate having regard to your personal circumstances and seek professional advice. The Administrator recommends that you consider the Fund’s Product Disclosure Statement (PDS) before you make any decisions about your superannuation. To obtain a copy of the Fund’s PDS, please contact a Member Services Consultant on 1300 55 7586.

Neither the Administrator, any other company in the National Australia Group of companies, nor the Trustee accepts liability whatsoever for any decision that is made on the basis of or in reliance of the information contained in this material. Please note that the information contained in this material is current as at September 2009. Any changes in the law or policy subsequent to this date have not been incorporated.

© 2009 Plum Financial Services Limited ABN 35 081 812 731 AFSL 243356 (Administrator).