Just wondering what percentage of your salary is being saved/banked for retirement etc?
What Percentage of Your Salary Are You Saving?
grabngo on 18/04/2015 - 06:51
Comments
depends on how old you are.
The closer you get to retirement age the more i'd be sacrificing.
I was salary sacrificing into super a few years back. However, given they keep changing the rules around super, I've now decided for myself that is not my preferred vehicle for savings. I'm just at statutory minimum and will save and invest outside super.
Accounts/Investment advisors may sell you a story of how great the super system is, but you need to decide for your own circumstances.
Keeping the money outside super lets you access YOUR money when you need it.
In any event, the taxes on super are open ended - you won't know what you will be taxed on until you retire, and even then, your money may well be stuck inside super with no lump sum withdrawl permitted or other potential changes.
Your circumstances may lead you towards rebalancing your savings allocation.
Standard disclaimer: I'm not a YADA YADA YADA…
what's super taxed at?
Google says 15% hmmso i assume your expected return on investment is greater than the tax saving expected from super?
Depends on your definition of savings. I pay above the minimum amount required on my investment property mortgage. Does that count? In essence it is a form of savings because the more I pay the greater my equity.
95% and its still gonna take me 30 years to save for a home thanks to the way property prices are going.
Government gives around $500 fortnight to the unemployeed so I assume this is close to the minimum spending a person can live on.
You are spending only 5% of you income so it must be more than $500, which means your after tax income must be over ($500/5%*26 =) $260K and you're crying poor.
do your annual budget and see how much you can put into savings per year, then divide that by how often you are paid, transfer straight into savings (try not to touch it!).
mine worked out to be savings of about 20% of salary (home loan, wife and an impending baby).
47% of net income
plus, 10% of SG and 2.5% salary sacrifice
Currently 26, intend to bump sal sac to 5% before 30 and then keep it there indefinitely :)
53% after tax minimum
27, spending every dollar. (apart from compulsory super)
also, how do I salary sacrifice into super? I have to ask my employer to do it don't i
Yep
Interesting question, currently after mortgages, bills, car, groceries and everything else, I save between 0 & 5% of my post tax salary.
Otoh, the wife saves close to 100% of her post tax salary. I.e. she does the saving, and I try to pay for everything.
Our reason for this sort of structure, as opposed to a more common 50/50 arrangement is to prepare (and discipline) ourselves for the eventual day that we start a family and she will stop work.
Interesting arrangement, and I agree with it seeing you're already married with her
You're definitely saving more than 0-5% seeing your wife does the saving, if she's making around the same as you, then your effective saving rate is 50% of net incomeAlthough I gotta say, if she stops working, your budget will be maxed out.
Keep your eyes on itYep that's correct and exactly the reasoning. It's better to prepare ourselves now and build the discipline, rather than wait for the day when she does stop work; to which the change would be abrupt.
Yeah same. My wife used to pay for everything and I would save 95% of my salary. But then a baby popped out….
I save 30% which is made up of 10% private savings, 9.5% super guarantee and 10.5% salary sacrifice super.
My ongoing internal debate is whether or not I should focus on super or not. Whilst I love the tax concessions on super I am concerned that they may increase the preservation/retirement age from 60 to 65 or even higher. I want to retire at 60 and be a grey nomad adventuring around Australia.