You won't notice 1% now, but you will down the road
Currently, the Government requires your employer to contribute 10% of your salary* to your super account each year. For many Australians, especially older workers, this will not be enough for a comfortable retirement.
But thanks to the long-term power of compound interest, simply adding an extra 1%, 3% or 6% from your before-tax salary, could see your super savings soar.
It's never too late to save for a better retirement
The following examples show how contributing even small amounts now, can boost your super over time. As you can see, the earlier you start, the longer it’s working on your behalf - meaning the more time it has to grow into retirement income.
But even for Mick, who didn’t start salary sacrificing until age 55, putting extra into super for 10 years still makes a big difference.
Tristan aged 25
Tristan benefits from an additional 1%, 3% or 6% for 40 years. He could end up with an EXTRA $766,712** in retirement if he contributes an additional 6% super from age 25.
Rohit aged 35
Rohit benefits from an additional 1%, 3% or 6% for 30 years. He could end up with an EXTRA $357,627** in retirement if he contributes an additional 6% super from age 35.
Alana aged 45
Alana benefits from an additional 1%, 3% or 6% for 20 years. She could end up with an EXTRA $148,634** in retirement if she contributes an additional 6% super from age 45.
Mick aged 55
Mick benefits from an additional 1%, 3% or 6% for 10 years. He could end up with an EXTRA $46,775** in retirement if he contributes an additional 6% super from age 55.
Maximise your retirement by maximising interest
Compound interest is when you earn interest on both the money you put into super and the interest it earns. This means you literally earn interest on interest. Given this power, the more you contribute to super now (even a small amount), the more you'll have to enjoy in retirement.
Two easy ways to boost your super
A lot of employers allow you to contribute a portion of your before-tax income to your super through 'salary sacrificing'. These contributions are generally treated as employer contributions so are only taxed at 15%. Because this is likely to be lower than your marginal tax rate, there may be real tax benefits to contributing to your super this way.
Another way to make personal contributions to your super is from your after-tax income. These contributions could include any payment you make from your take-home pay. These contributions may be tax deductible.
How to make extra after-tax
You can make a contribution to your TWUSUPER account with BPAY®. TWUSUPER'S biller code is 857664. Get your unique BPAY® reference number by logging into Member Online or calling 1800 222 071 between 8am and 8pm (AEST/AEDT) weekdays.
Please note, it's essential that you have provided your Tax File Number to TWUSUPER before you make the contribution as we are unable to accept after-tax contributions without it.
Get started now
If you've got any questions or would like to find out more about giving your retirement a boost, you can request a call back from one of our contributions specialists.
*Salary refers to your ordinary time earnings.
**Assumptions for modelling SuperRatings conducted the modelling for TWUSUPER and based the calculations on the following assumptions on all four scenarios. Changes to these assumptions will alter the results. Modelling is based on a starting salary of $60,000 and superannuation balance of $50,000. Additional contributions of 1%, 3% and 6%. Inflation rate of 2.5% and 3.5% wage increase rate. Investment return of 7.0% (Balanced Investment - MySuper Option) is assumed and remains constant for the entire projection period. Superannuation Guarantee contribution based on the SG schedule, accounting for proposed SG increases to 12% in 2025/26. 15% contribution tax is applied to taxable contributions. Fees and returns are as at 30 June for each year of the comparison. Investment earnings are paid at the end of every year (i.e. compounded annually). Contributions are made quarterly in arrears (i.e. the first contribution is made 3 months after joining fund). Annual salary is deemed to be total assessable income. Explicit costs deducted from members' accounts (e.g. member fee) is subject to a 15% tax allowance. Contribution caps are not exceeded under any scenario, assuming current rules remain and contributions are only made to a single fund (TWUSUPER). No allowance made for insurance premiums; No allowance made for parental leave or any other leave of absence; Expressed in future dollars (i.e. Not discounted to present value for inflation).
® Registered to BPAY Pty Ltd ABN 69 079 137 518. The information on this webpage is of a general nature only and is not a comprehensive study. It has been prepared without taking account of any of your objectives, financial situation or needs and, before acting on the information, you should consider its appropriateness having regard to your objectives, financial situation and needs. A copy of the current Product Disclosure Statement should be obtained from us (by calling 1800 222 071 or visiting www.twusuper.com.au) and considered carefully before you make any decision in connection with TWUSUPER.
Issued by TWU Nominees Pty Ltd ABN 67 002 835 412, AFSL No. 239163, as the trustee of TWUSUPER ABN 77 343 563 307.