One quarter of workers are boosting their superannuation through salary sacrifice and potentially giving themselves hundreds of thousands of extra dollars at retirement.
New research has highlighted the double reward savers can get from salary sacrifice – a bigger nest egg at retirement and tens of thousands of dollars of tax savings along the way.
Canstar’s number crunching found a 35-year-old worker with an average super balance of $46,500 and average wage of $86,000 could increase their retirement balance by almost $35,000 plus save almost $7500 of tax if they salary sacrificed $100 a month – about $23 a week.
If they lifted their salary sacrifice to $500 a month – or $115 a week – their final super balance would be $174,000 more and they would save an additional $37,000 in tax.
Canstar spokeswoman Effie Zahos said there was a definite double benefit from salary sacrifice, but many people didn’t consider the tax savings.