What is Salary Sacrifice and Why Should I Consider It?
Most employees want to have as much money saved for their future as they can. Though not many people really think about their super, you should be doing everything that you can to build your superannuation. You deserve to have a comfortable retirement. Without adequate super, you may end up spending these years working.
There are ways to build your super up faster and salary sacrifice is one of them. So, what is it?
Salary sacrifice is when you choose to have your employer regularly pay some of your salary into super instead of taking the money as after-tax pay. The salary you ‘sacrifice’ is paid directly into your super fund before income tax is taken out. The money does get taxed at fifteen percent, but that can be much lower than your personal marginal tax rate.
Even if salary sacrifice doesn’t sound like something that you may want to do, you really should consider it. Not only are you helping to grow your super, it could mean you pay less tax overall. But remember, money in super will be locked away until you reach your preservation age and meet certain conditions.
While you may need every dollar that you make, you really should consider asking your employer if he or she allows for salary sacrifice. Just think that every little dollar adds up and this could really make a difference when you are ready to retire and enjoy the rest of your life.
Contact us to find out how you can boost your super savings for retirement.