Bill: Age 45

Age 45 and earning $65,000 gross salary a year, Bill's mortgage repayments have gone down and his eldest child has left home.

As a result, he has a little extra money left over at the end of the month. He's now more than half way through his working life and starts to think about how much money he will need when he retires at age 67.

The difference salary sacrifice could make

See below to see Bill's estimated balance at age 67 depending on if he chooses to:

  • stick with his employer contributions only 
  • contribute an extra $38 per week  
  • contribute an extra $76 per week  

 Salsac case study graph DRAFT


Investment earnings of 5.70% net per year and employment is constant until age 67. Inflation of 2.5% per year and figures are in today’s dollars (i.e. the final value is discounted for inflation). Figures include SG contributions of 9.5% at 1 July 2016 and then increases to 12% as per current legislation. Wage inflation of 2.5% Asset fee 1.1%. Admin fee (per year) $50. Insurance premiums (per year) $0. Calculated at 02/11/2016. This example is an illustration only and is not guaranteed. Actual outcomes may differ. Investments may go up or down.

What Bill did next

Bill decided he could forgo $38 a week from his pay and put it into his super without noticing any change in his current lifestyle. 

He spoke to his HR manager who took him through the process of organising a salary sacrifice arrangement under the company payroll system.

What will YOU do next?

Why not have a look at ASIC's contributions calculator to see how you could build your super with a salary sacrifice arrangement. 

If you have any questions about what you've read here please call us on 1800 222 071 between 8am and 8pm (AEST/AEDT) weekdays.

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