Voluntary Super Contributions will HELP!

Voluntary super contributions are a great way to save extra money for your retirement.

Each dollar you add to your superannuation will grow x10 over the life time or your balance or more, so adding money frequently and early will greatly increase the ammount of money you will have for retirement.

Australian’s are increasingly finding that they do not have enough money to retire, and those that do are stuck with a mere $30,000 a year, barely enough for food and 1 outing a month! Read about how much you need to retire to better understand it.

What is a Voluntary Super Contribution?

By law, Australian employers need to pay a minimum of 9% super into you designated super account. A voluntary super contribution is a percentage over that ammount of that you define as a voluntary contribution after tax. Eg; If i decided to add another 6% of my net pay, I would have a super contribution of 15% (6% voluntary and 9% compulsary).

Benefits of Voluntary Super Contributions

1. Your super account will sky rocket and you will likely end up with a lot more then the next person come retirement.
2. You will have a retirement that will be enjoyable, no skimming on day to day stuff.
3. Every dollar you add, will grow heavily of its lifetime in the account.

Tips on making Voluntary Super Contributions

I have a great tip on ways to save for your retirement using contributions and your super! Here is how the formula works;

1. Write down your age.
2. Divide it by 2.
3. The number you get is the percentage you should be adding to your super.

This works great because when you are in your early twenties and not earning as much, you can add only a small percentage of voluntary contributions. Eg; a 22 year old would only pay 11% super, 2% out of his or her own pocket.

Following this method will not only greatly grow your super each year, it will continue to rise the cash flow of money you send into the account as you start to earn more. Think about its power to grow your super!

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