According to the Australian Bureau of Statistics the average superannuation balance for males between 45 and 54 years is $196,400.1 Specialist financial advisory company The Moreton Group’s records show that its male teacher clients average $160,000 in super, while its female teacher clients of the same age average $230,900.
Cameron Dickson, Managing Director of The Moreton Group, said the end of the financial year is an ideal time to grow your retirement nest egg.
“Some Teachers can increase their tax return by making a tax deductible contribution into their super fund from their savings before the end of the financial year,” Mr Dickson said.
Women on average retire earlier than men2 but, for either men or women, making superannuation contributions could grow your nest egg and take months off your working life.
“For example, a recent 55 year old teacher with $250,000 currently in their super account had projections of a super balance of $539,964 at 65 if they make no additional contributions,” Mr Dickson said.
“The projections also illustrated If this Teacher were to contribute $1,000 in the lead up to EOFY every year until they retire at say 65, they could retire with $553,051, allowing more financial freedom in their retirement or even the opportunity to retire months earlier than they originally planned.
“The benefits of contributing to super can be realised long before retirement, because contributions are taxed differently to your normal income, with our client projected to get a tax refund of $3,866 over the 10 year period of contributions” he said.
Mr Dickson said the most valuable thing anyone can spend their tax return on is their future. “Getting personalised advice is the only way to get a clearer picture of what you will need in retirement,” he said.
“Engaging with a retirement planning advisor will allow you to build a clear and realistic roadmap so you can live life on your terms.”
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