Superannuation is boring, I get it. I remember when I was a management consultant years ago, I was too busy with work and life to give super much thought. I knew it was to do with retirement which was a long way for me.
After I became a financial planner, I studied superannuation inside out. I was surprised with the tax savings it offers and how few people take advantage of it.
Over the years, I met a handful of people who earned an average income but accumulated much larger super balances than their peers. There were on their way to worry-free and even early retirement.
What’s their secret? Make additional contributions (on top of what their employers put in for them) as early as possible.
These additional contributions don’t need to be large. The low tax rate in your super fund turbocharges the compounding effect and helps grow your balance more quickly.
And the tax deductions you may be able to claim for these contributions make the impact on your cash flow less noticeable.
Once you have the right super strategies in place, you will benefit from them for many years to come, a bit like having good habits in place such as exercising daily and eating healthy.
The result is you stop worrying about not having enough to stop working one day and get to focus on enjoying your life NOW.
As always, feel free to reach out to me if you have further questions.