The Psychology of Money Pt.4 – Superannuation 👍👎👎👎👎
I think by now most people realise superannuation is not your salvation even if the government doesn’t admit it. But I’m often asked should I salary sacrifice into my super. 🤔🤔🤔
There’s no simple answer to that question but I want to share my thoughts.
The only thing I like about superannuation is that it forces Australians to save for retirement. We’re good spenders but terrible savers, the retirement pyramid reflects this. 👍
Apart from that, it’s all concerns for me. Firstly, having to part with 9.5% of my hard-earned money to go into a fund that, I have no real control of, and have to pay fees on whether it goes up or goes down. I mean what job can you fail in and still be paid big bonuses??? 👎
The insurances that often come attached to the fund can be costly and there have been countless stories of people not being covered at time of claim. 👎
Tax savings. Currently, if you contribute additional money to super it can save you tax. For example, if I salary sacrificed $6k out of my wage it would save me approx. $2,000 in tax. However, if I was to use that same amount of money I could invest it elsewhere giving me $5k-12k in tax savings by leveraging that money into something like property which has the potential for growth and cash flow via rent. 👎
These are just a few reasons but probably my biggest fear for most are super balances. The average for 60-64-year-olds retiring today is approx. $300k for men and $160k for women. How far will that go if you still have a mortgage or other debts? The government says you need a minimum of $50k a year as a couple to live a modest lifestyle how long will that last? Will the pension still be around come time for mine or my daughter’s retirement? Finances for thought.
I would love to hear your thoughts on superannuation in the comments below and whether you agree or disagree with any of the statements I’ve made.
If you have concerns your super won’t stack up in retirement make an appointment so we can have a conversation to put your mind at ease.
*This video is for demonstration purposes only. Before taking any action, seek financial advice from licenced professionals to see if this strategy is right for you.
#savemorethansuper
#makemorethansupercan
#protectyourselfbynotrelyingonsuper
*This video is for demonstration purposes only. Before taking any action, seek financial advice from licenced professionals to see if this strategy is right for you.
