/> Skip to main content
news and research
our facebook page linkdin

Is salary sacrifice right for you?


For most people superannuation is an important part of their retirement planning, but is there value in making additional contributions over and above what your employer already pays? While the return for many super funds has been less than spectacular in recent years, over the longer term many funds will experience average growth of between 7 - 10% per annum.


So let's say you decided to pay an extra $150 a week into super in addition to your employer's contributions. Over 52 weeks that's $7,800. At 10% growth that means your $7,800 has grown by $780.


What if instead you purchase a $400,000 investment property which cost you approximately $150 a week to hold. Let's say the long term average growth on the property is 7%. In the first year your property would have increased in value by $28,000. A difference of $27,220.


What about in 10 years time?


For super at 10% per annum growth, with $150 a week contribution you would be looking at $133,832. For property the value in 10 years time at 7% growth would be $805,122. Less the original $400,000 is a gain of $405,122.


The key is selecting the right type of property that will be affordable to hold and offer suitable growth over the long term.


Contact us to discuss safe and affordable strategies to reduce personal debt and build wealth for your future.


The information provided is general in nature only and is not a substitute for independent professional advice. We disclaim liability to all persons or organizations in relation to any action(s) taken on the basis of this information, or any loss or damage suffered in connection with that information or material. You should make your own enquiries before entering into any transaction on the basis of this information.