Even the smallest contributions can make a huge difference over the long-term. As you can see, the earlier you begin making additional contributions, the more your invested money will accumulate over time.
A difference of over $87,000 at retirement (actual number $87,215).
This example has been created using the MoneySmart Superannuation calculator found at https://moneysmart.gov.au/how-super-works/superannuation-calculator as at 15 May 2020. The results from this calculator are based on the limited information that you have provided and assumptions made about the future. The amounts projected are estimates only provided by this model and are not guaranteed.Results are shown in today’s Australian dollars.
Assumptions: Inflation 2.5% each year due to the rising cost of living (CPI inflation). A further 1.5% each year due to the cost of rising community living standards. Investment return before investment fees and earnings tax of 7.5% each year. An effective tax rate on investment earnings of 7.0%. A default assumption for administration fees of $74 each year in today’s dollars. Plus a default investment fee assumption of 0.85%. A default insurance premium assumption that $214 will be charged mid-year on average and will increase with inflation each year. Employer contributions 9.5% each year incrementally increasing to 12% in line with government legislation. The projected super balance is shown at 1 July after reaching the indicated age on the chart. For example the super balance shown for age 65 is the balance at 1 July after your 65th birthday. Don’t rely solely on this calculator to make decisions about your retirement, there may be other factors to take into account. Consider your own investment objectives, financial situation and needs.