A bit less salary, a lot more super

At the start of a new financial year we’re often encouraged to take steps to tidy up our finances. But as with other new year’s resolutions, such as to exercise more or give up chocolate, good intentions don’t always end with real action.


When it comes to super, there are lots of things you can do to help your account to grow. The trick is to focus on one thing at a time – and salary sacrifice is a good place to start.


How does it work?

Salary sacrifice sounds painful, but it’s probably the easiest thing you can do to grow your super. You just ask your employer to put some of your pre-tax salary into your super account every time you get paid.*

One of the benefits of salary sacrifice is that because the super contribution comes from your pre-tax salary, the reduction in your take-home pay will be less than the amount that hits your super account.


What difference does it make?^

By salary sacrificing just 5% of their salary:

  • A 30-year-old earning $50,000 a year could be $333,000 better off at age 65
  • A 40-year-old earning $75,000 a year could be $232,000 better off at age 65
  • A 55-year-old earning $95,000 a year could be $62,141 better off at age 65


What next?

  • Ask your employer what you have to do to start salary sacrificing – it’s usually a matter of just filling in a quick form.
  • Try the Suncorp Retirement Simulator to see if your super is on track and what effect making extra contributions can have.

To find out more, just give us a call on 13 11 75 or talk to your financial adviser. 


*There is a limit of $25,000 per financial year ($35,000 if you’re aged over 60) on the amount you can contribute to super from pre-tax earnings. These limits include the 9.25% compulsory employer contributions.

^Assumptions: Additional retirement savings are expressed in future dollars and are in reference to extra funds on top of a base scenario / Base scenario is 9% Super Guarantee, 6.5% gross investment return, no salary sacrifice, no one-off non-concessional contributions, no consolidation of lost super and no career breaks / Contributions are made at the beginning of the year / Earnings are calculated at the end of the year / Indexation at 3%


Important information

This information is current as at 30 June 2013 and may be subject to change. It has been prepared without taking into account a person’s objectives, financial situation or needs. For that reason, before acting on this information, a person should consider its appropriateness having regard to their own objectives, financial situation and needs. Where the information relates to the acquisition, or possible acquisition, of a particular product, a person should read and consider the relevant Product Disclosure Statement (PDS) in deciding whether to acquire, or continue to hold, the products.

Suncorp WealthSmart Personal Super, Suncorp WealthSmart Business Super, Suncorp WealthSmart Pension and Suncorp Everyday Super are provided by Suncorp Portfolio Services Limited ABN 61 063 427 958 (Trustee). Suncorp-Metway Ltd ABN 66 010 831 722 (Suncorp Bank) is not liable or responsible for, and does not guarantee or otherwise support, Suncorp Everyday Super accounts. Suncorp Everyday Super accounts are not a bank deposit product.

Tags: Retirement Super