For many Australians, the idea of saving an extra million dollars in super seems like an impossible dream. And yet it doesn't
have to be. A few simple, proven strategies can have an enormous impact on your eventual super payout, especially
if you start early. Even if you're closer to retirement, you can make a big difference by acting now.
The secret is to begin as soon as possible, take advantage of super's tax benefits and - most importantly - avoid wasting
money on fees. Here's a case study to show how it can work.
Case study - How Archie could add an extra million dollars to the final super payout.
Consider two investors - we'll call them Archie and Matilda. They're both 35, earn $100,000 a year, and have $150,000 in
super savings invested in a higher growth option designed to maximise returns. We'll also assume their salaries both
rise at 3% a year and they each plan to retire at 65.
What makes Archie and Matilda different is that Archie has decided to take control of his super with a self-managed super
fund (SMSF). Not only has that reduced his fees, it has also encouraged him to top up his super with a tax-effective
salary sacrifice contribution of $6,000 every year.