Convert your savings into super savings by making personal contributions.
If you have money outside super that you want to invest for retirement, you may want to make an after-tax super contribution.
You have surplus cashflow or savings.
Anika is 50 years of age and has $50,000 in a bank account that she would like to invest for her retirement. She earns $70,000 p.a., so her marginal tax rate is 34.5%1.
If she contributes the money to super, investment earnings will be taxed in the fund at a maximum rate of 15%. That’s a tax saving of 19.5%.
Paying less tax on earnings in super will help build her retirement nest egg and improve her lifestyle when she stops working.
1. Includes Medicare levy.
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