Putting aside extra money for your retirement mightn’t seem like a priority, especially when there are so many other pressing things to pay for. But even a small amount each week or month could make a significant difference to the amount you’ve got to play with when you retire.
Small amounts can grow a lot over time2. Just an extra $10 a week over 30 years, for example, could grow to around $32,000.
The light blue sections of the graph show the effects of compounding earnings. The dark blue sections show the regular contribution of $20 per fortnight over 30 years.
Saving $20 a fortnight for 30 years
For regular deductions
If you work for the Queensland Government or a related entity, complete a Start or Change Regular Contributions to Your Super form, and nominate the amount you’d like to contribute.
If you don’t work for the Queensland Government, have a chat to your employer and they’ll be able to point you in the right direction.
For a one-off deposit
*Cash deposits are limited to $1,000.
1. Assumptions - The figures above are based on projections in today's dollars, assuming an investment earnings rate of 7% p.a. after fees, tax, and inflation (CPI % movement) of 2.5% p.a. We’ve based the investment earnings rate of 7% p.a. on guidance provided to consumers by the Australian Securities and Investment Commission. This guidance suggests a projected earnings rate of 8.5% p.a. for funds with similar asset allocations to the QSuper Balanced option. An allowance has been made for tax of 6% and QSuper fees [the Accumulation QSuper Balanced option 2008/2009 MER of 0.73% p.a.] and then rounded to give the rate of 7% p.a. The projection assumes contributions are paid at the beginning of each fortnight, and earnings are calculated and paid fortnightly. Actual investment earnings may differ from the projected investment earnings.
You shouldn’t rely on these projections for the purposes of making a decision about a financial product, including a decision about a particular product, fund or strategy. The QSuper Board of Trustees, QSuper Limited and QInvest Limited expressly disclaim all liability and responsibility to anyone who relies, or partially relies on information or projections from the calculator.
2. In years with negative returns, there will be no earnings to reinvest.
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