You’ll have heard the old, almost grandmotherly adage that ‘every dollar counts’. But guess what – it’s true.
Voluntary after tax super contributions (also called non-concessional contributions), refer to any payments you make to your super fund out of your take-home pay. Making after-tax super contributions is an easy way to boost your retirement savings on your own schedule.
Your super money jar
Setting up small, automatic after-tax payments is a simple and effective way to add a little extra every month. In the same way people empty their coins into a change jar at the end of a day, making small contributions to your super is like putting your coins into your super savings, which you can access when you retire.
Saving when you can adds real value
One of the great things about making small contributions is that you only have to contribute what you can afford. Whether it’s an extra $5 a month, or an extra $50, even small amounts can add up to make a big difference.
If automatic after-tax contributions aren’t your style, you can make one-off contributions whenever you have spare money. You can also consider looking into salary sacrifice, which is often the most tax effective option. Depending on your financial circumstances, these could be great options for you to make a big difference to your retirement savings.
You can make after-tax contributions to your super any time but you should ensure you do not exceed the superannuation cap of $27.500.
Call us today if you’d like to find out more about contributing to your super
Reproduced with permission of National Australia Bank (‘NAB’). This article was originally published at https://www.nab.com.au/personal/life-moments/work/plan-retirement/after-tax-contributions
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