Salary sacrificing just 1 per cent of annual income into superannuation could add more than $70,000 to the retirement savings of a 30-year-old earning $105,000, experts say.
The strategy amounts to about $20 a week, with the potential benefit driven by the long-term effect of compound interest.
“The magic of superannuation really relies on compounding interest,” said Mary Delahunty, chief executive of the Association of Super Funds of Australia.
Brisbane teacher Aaron Klarwein, 47, is already making additional contributions alongside the regular payments from his employer. He puts $50 into his super every fortnight.
“I’m hoping to retire sometime before 60,” he said.
Additional contributions appear to be gaining popularity. Superannuation provider MLC said contributions made by members rose by 79 per cent between May and August compared with the same period in 2024.
MLC chief customer officer Howie said the budget, tax changes and end-of-financial-year planning may have encouraged people to review their finances.
“People [are] really taking the time to understand where they’re at, where they want to be and building a plan to get there,” Howie said.
Experts also stressed that the way superannuation is invested can affect the size of a retirement fund. Younger workers may consider high-growth strategies, while people closer to retirement may prefer a more conservative approach.
“These kind of choices are best done with the help of a professional, but you can make them quite easily when you contact your super fund,” Delahunty said.
Klarwein said he hoped the extra saving would allow him to enjoy a comfortable retirement.
“Hopefully [I’ll be able to] live very comfortably,” he said.
