In your Forties – Invest for Growth
13/06/2024
Market Update – June 2024
01/07/2024
In your Forties – Invest for Growth
13/06/2024
Market Update – June 2024
01/07/2024

Why you should make Super Contributions in your Thirties

For those who are not aware, here is some important news for all Australians, particularly those in their thirties: from 1 July 2024, the annual superannuation concessional contributions cap is increasing to $30,000. That means the first $30,000 contributed to your super during that financial year incurs tax at the concessional tax rate of only 15%.

Here’s why that’s so important:

  • If you’re earning $160,000 per year, your employer will deposit $18,400 into your super (as the super guarantee rate from 1 July will be 11.5%). As a result, you’ll still be able to make $11,600 of voluntary contributions before reaching that $30,000 cap.
  • If you were to let that $11,600 compound in your super for 30 years, and if it was to earn a return of 8% per annum, it would grow to $116,727.

Alternatively, if you were to spend that $11,600 on a holiday, you wouldn’t have an extra $116,727 in your nest egg at retirement.

The point of this post is not to say don’t spend and live. Instead, unless you spend your days thinking about super, tax, investing and long-term compounding – as financial advisers do – you won’t be able to make informed decisions about the most effective way to deploy your money.

Want to better understand your options? Let’s discuss it.

 

This is general advice only. Please speak to a licensed professional for personal advice related to your specific situation. If you want expert advice on achieving your goals, speak to Affinity Private Advisors today by calling 1300 769 304, emailing enquiries@affinityprivate.com.au or filling in this online form.

 

The information contained in this article is current as at 25/06/2024. Any advice or information contained in this report is limited to General Advice for Wholesale clients only.

The information, opinions, estimates and forecasts contained are current at the time of this document and are subject to change without prior notification. This information is not considered a recommendation to purchase, sell or hold any financial product. The information in this document does not take account of your objectives, financial situation or needs. Before acting on this information recipients should consider whether it is appropriate to their situation. We recommend obtaining personal financial, legal and taxation advice before making any financial investment decision. To the extent permitted by law, Affinity Private Advisors does not accept responsibility for errors or misstatements of any nature, irrespective of how these may arise, nor will it be liable for any loss or damage suffered as a result of any reliance on the information included in this document. Past performance is not a reliable indicator of future performance.

This report is based on information obtained from sources believed to be reliable, we do not make any representation or warranty that it is accurate, complete or up to date.  Any opinions contained herein are reasonably held at the time of completion and are subject to change without notice.

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