I am curious about how much money people have in their Superannuation accounts compared to their age.
Most of the money I have is from work but I have contributed a little as well.
I am:
28 Years Old
$25,000
How much money do you have in Superannuation (by age)?
johndowy on 30/05/2015 - 21:12
Comments
28yr and have 60K. All from working.
65ish.. 30yr old, no self contributions
If you put all money in super and by property and sell it will that money and all profit do back into super or will then profit from sale go to you directly?
Primary residence, no Capital Gains Tax. Otherwise, look up CGT.
no such thing as "Primary Residence" when your talk about super. You cannot live in the houses you invest in, period. There is always CGT.
OP's post was unclear and ungrammatical, so I wasn't sure whether he was talking about investing in property with his own money or as it turned out, with super money, for which he would have to do a SMSF, and even for those, residential property is regarded as too risky, usually property investment means commercial property.
There is a lot more to it than just "buy property and sell it"… research the costs, tenants, landlord liabilities, CGT, etc..
stays in super
I class myself a 'high risk' investor, but some of the folk going into property these days make me freak out!
Yes as they do me.
Stays in Super plus there are limits of how much you can contribute to super each year. You cannot buy a Primary Residence. You will also need to open your own self managed super fund if you want to do the investing yourself.
so your saying if make 150k profit - this amount goes back into super… so you just pumped extra into super that you can take out tax free after retirement age? obviously after CGT…
Yep, but make sure you take into account the rules could change (new legislation by government), so retirement age could be anything depending on how old you are now. Best to see your accountant if this is something you are considering.
Better to go see a Financial Advisor/Accountant. Super funds are highly regulated and quite complex. Last thing you want to do is get advice from an online forum.
Yes, i understand i will need Professional advice. Just thinking out loud here :) Retirement age can be an option but with the line of work im in injury resulting in some kind of disability is very very common… therefore disability in the super is a must :\
Fair enough :)
70K 28 years old just for work. My super is growing at 20% + percent per annum.
What super company are you with?
Wow, impressive. I'd love to know that too. I couldn't find one super fund on that figure on superguide.com.au
Australian Super is returning 20%+ on International Shares investment. Only for the last few years though. Standard investment blends are returning 10-15%.
@CSR:
The S&P 500 is up approx 21% per year CAGR over the last 3 years factor. The AUD is also down approximately 30% so you have a fund that is dramatically under-performing a simple buy and hold strategy.
That's a high risk strategy. Just as easily could go backwards by 20% or more. A lot of that return will be down to the falling $AUD if any of the investment is unhedged. Longer term international shares has not been a good story over the last decade or so.
Not entirely true!
A SMSF with a single passive ETF holding like SPY would have gained around 10% pa over the last 10 years. But if you went with a poor performing super fund such as Australian Super you would have gotten a measely 3.22% over the same period.
If you'd invested in SPY for 10 years from 2000 to 2010, you would have lost around 2.4% p.a. It's had a huge rally in the last 6 years, but was terrible before that.
over how many years? or you just using the last few quarters?
whats the return the last 5-10 year average, wont be 20%?
$150k and 33 - no additional contributions, but salary sacrificed mandatory contributions since I started working at 21.
Your comment is contradictory.
54, $1.1 million combined with my hubby, salary sacrificed for as as long as I can remember, minimum 10% max 30% (prior to the limits that exist now) depending on what we needed for the kids.
Hmm, Looks like I'm falling behind. Been self employed for the last few years so I haven't contributed much.
People who have $1m+ in their account did it many years ago when the limit for contributions was much higher. It'll take a lot longer to contribute that much now.
I'm self employed too. Been putting in the full $25k in the past few years. Before that I didn't have much.
$250k at 41.According to data from the Australian Bureau of Statistics, the average/median person has very little…
http://www.superannuation.asn.au/ArticleDocuments/1089/1403-…This is the truth
Hasn't the 25k gone up to 30-35 currently?
Edit:
https://www.ato.gov.au/Individuals/Super/In-detail/Employer-…Looks like it's now 30 for the 14-15 year.
Don't let the mine's bigger than yours comparison bother you. Most commenters in this thread will be outliers. Most Aussies have a lot less wealth than it first appears.
If people want to see inflated figures that should head over to the Whirlpool super or salary threads. Everyone is a millionaire…..
And they all get 97% in their subjects.
I agree somewhat here with the outliers comment. You can't do anything about what your super balance is right now however planning is the key. If you want more in retirement than the pension then you need to put away a little to prepare for that, there are no guarantees of course however we have lived through the slump in the 90's that cut our super balance by a third and we are now seeing good gains. As to how aussies have a lot less wealth than it first appears I am not sure how that can be if you have access to the internet you can check your balance daily for super, unless you mean that some aussies are exaggerating their 'wealth' that may be however to what end I can only guess at.
I honestly doubt a pension will exist when/if I ever get to 90+ years that will be required to get it.
I'm 26, $10,000 in my super.
What about other income producing assets?
Not all of us wanted to wait until 60 to receive income from retirement funds.35, $0. :S
:(
at least it's not minus $0
$91k 33 year all from work
The return had been great since GFC i choosed all the aggressive asset - might change it soon to a little bit more defensive one
I'm in two minds about mandatory super. I can see how it's a good thing to hold back some money for people who just can't help themselves and spend away their every pay packet as soon as they get it. On the other hand, it's a huge handbrake for those who plan ahead and would like to have more flexibility in how they build their wealth. Most of all, I hate the super funds that do nothing more than eat away your money, filling the pockets of the fat cats. Rort.
Your missing the main benefit of super. Paying less tax.
Also, it's entirely your choice how much you want to pay in fees. Think you're paying too much? Switch funds. Simple.
not everyone is earning so much that "paying less tax" is their top concern or would make any difference to their financial status
Anyone earning over $18,200 per year can reduce their taxes by voluntarily contributing to superannuation. I suspect that anyone earning less than this wouldn't be saving money but merely trying to get by.
You also need to consider future earnings too. This is because earnings on investments inside super are also taxed at just 15% rather than your marginal rate.
The main benefit of voluntary contributions to superannuation is paying less tax. There aren't many other benefits.
@ajdlinux:
Yes! I had forgotten about the free money. I got it every year from when I was 15 until I finished uni.@sickllama: I'm about to finish uni and start full-time, so I'm going to try to max out the final year that I can get it!
Nice. The first thing I did when I started work was put in the form to HR to make voluntary contributions to super. I am still doing it 5 years later and have never missed the money.
@sickllama: for people on low income (above or under the low income threshold), i reckon putting food on the table and making sure all the bills/rent are paid are more pressing concerns than getting "free money" on money you can't access for many year's to come.
great if the situation improves but the prospect of being homeless with all that super you can't touch isn't much comfort
@tdw:
Completely agree. I wouldn't encourage people to put money into super until they've got a 6 month cash emergency fund.
FYI you can access super under the hardship provisions - I expect that being homeless would qualify.
I started work when I was 21yrs as a graduatel. Now I am a manager at 52yrs, my super has defined benefits (based on a multiplier of years of work and salary) and has accumulated to 6 digits with no additional contributions.
When I started work I spoke with an investment advisor who suggested one approach - share the risk of investments between
- Property
- Superannuation
- Shares/Managed fund (recent returns on managed funds over the past 12 mths at 9.9% compare this to cash in the bank in the form of term deposits e.g. Rabo 3.5% 5 yrs fixed term on $10,000)As others have mentioned, managing a property has some challenges. I have a background in construction, project management and contract law, and it certainly doesnt go astray.
Most banks have financial advisors, some work for free provided you buy a "product" from them. Do your research and reading then you will be an informed buyer.
Public servant I assume?
Run own business now for 11 years only have about 70 grand between us :/ both 42
But hey super isnt everything ;) lol
and my house is nearly paid for….
Just turned 34. Have 110k in super. Did 3-4 yrs of contributing $500 to get the govt co-contribution of $1500. Otherwise all from work.
do they still do the government co-contribution?
Yeah, up to $500, if you make less than $49,500. I made my sole voluntary contribution a few years ago to make the most of the fact that I was a 'low income earner' because I'd just started working after uni, and thus only made money for 6/12 months. I put in $900 because I calculated that I could have got ~$870 from the govt.
Is it $1:$1?
I think 8 or so years back they did $1:$1.50 up to $1500
I tried doing it but it was so difficult to set up. Now they have mygov and from what I read in the link u provided it doesn't require any setting up at all.
$40k at 28. Have never made an additional contribution.
30 yo, 168k
280K, 34 y/o all from work, super from my previous job was 14%
How does everyone have such a larger super balance at such a young age?!? You'd have be on a six figure salary straight out of uni to have a balance even close to some of those stated on here!
Got lucky with timing I'd imagine. If you had a decent amount around 2009 and had the balls to put it in equities, you've made a killing.
Yeh I'm not really seeing how all these "30 years old, $200k super, no extra contributions ever" people could be telling the truth, unless they're all millionaires.
Even if you got a $100k job straight out of high school, worked for 13 years straight and got 9.5% super from work, that's only ~$120k super by the time you're 30. Even if they invested in very high risk options, even $200k is pushing the limits of belief.
started working since 2004 straight out of Uni, I never cared about my super (as it is something I can't touch in literally decades anyway). First salary was 85K per year then gradually went up (got lucky I guess and now earning more than enough). I checked early this year when I moved job and it was 277K already. Pleasant surprised. I am in the high risk investment though due to my age. Also I don't think people will have a reason to lie to strangers? (maybe I am abit naive)
Also I don't think people will have a reason to lie to strangers? (maybe I am abit naive)
Yeah I think you are haha. People lie about the most trivial things on the internet if it will make them look good, especially if it's anonymous and you can't prove them wrong easily.
$277k in 10 years? Damn, that's impressive. Is that just from your job? 9.5% or higher employer contributions?
@MrFunSocks: Though to put that in perspective, a 20% deposit on the median home is $160k in Sydney now and was the price of a unit 25 years ago. What a crazy housing market.
@MrFunSocks: haha true, I am naive then.
My old job paid 14% contribution so that helped. and yep just from my job. my salary basically double on the 4th year there
compound interest? A lot of super funds are annualising 9-10% returns on high risk options (over 10 years). Throw that in to your equation and you will eclipse 200k very easily.
29 Years, $25,000
32 yo 25k
26 yrs $15k
29yo, 30k. Work contributions 15% with no additional contributions. Other comments in thread remind me that I've worked underpaid for what I do all these years.
$550k
55 years old
1980s: self employed, during the early years of super a financial adviser suggested I buy a 'Superannuation Bond' and then make regular (ie annual) contributions to it.
1990s: had various employers with average to good super
1998+ working in higher ed sector the super is good. I rolled over my various funds from the 90s and it has been in high risk/return ever since. I have been making the usual contribution of 7%, changed that to 8.5% salary sacrificed for the past 8 years or so.$71k / 26 y/o.
5.88% pre tax contribution to get 14% from work
How does this work? The statutory rate is 9.5% right? Wouldn't that make it 15.38%?
If I contribute 5.88% before tax they put in 14% instead of standard 9.5% meaning my weekly contribution is now 19.88%.
If I don't contribute I only get 9.5%.
Wow that's a really good deal for you. Essentially your income is 5% higher.
$125k - 35yrs old … just from the mandatory 9% from my employer
Always had it in a "high growth" category, so it copped a caning in the gfc era, but been making 15% on average all other years$0
27yo $110k
Did make some contributions as doing so meant that my employer also increased their contribution.
Thanks for starting this thread OP.
<25 and bare minimum contributions in super
I don't trust the governments ability to resist tapping into such a large pile of money.
Your suspicions are founded. What you think it gets put in a piggy bank or buried in the ground? It's invested, just as you would expect, to counter inflation.
What are you trying to say?
It's invested, the government has to pay market rates if they want to borrow it, like anyone else.
I am more concerned with future tax increases and the removal of incentives to keep money in super.
If I was retiring in 5-10 years time then sure certain tax incentives are there… but I very much doubt things will be the same in 40-50 years time.
I would rather compound money outside of super and maintain full control of my investments. Debt is increasing, spending is increasing, population is aging and we have social security burden that will need to be serviced by a smaller working population. Tax increases are inevitable.
@thirtysixd: That's what you should have written in the first place instead of giving the impression that the government is holding onto your money. It's not, just that the money is sequestered from you in your choice of fund until preservation age.
35yo 79K
35 year old @ 91K
from 17% super @ work with no additional payments
46 and have $125k, but I have only worked in Australia since age 30. I also have a UK fund that when I last had it valued (just over a year ago) was worth about $200k. My wife has about $85k having spent time out of the work force and part time with kids.
I have been waiting for the UK pound to get back to something like its longer term average (its starting to get closer) against the Aus dollar before transferring the UK fund here. I just sent off for another transfer valuation and if past years are anything to go by it should have jumped up again. In 3 years it went from $110k to $200k with no contributions. Don't ask me how, its a defined benefit fund where transfer values are worked out by actuaries.
keep in mind as the value of the UK fund grows, so does the tax implications.
The ATO had a program last year where you could declare foreign investments with no (i think) tax consequences, it was called project Do It ( https://www.ato.gov.au/General/Correct-a-mistake-or-amend-a-… )
You might want to check if there is a similar program still runningThey normally just waive the penalties on these amnesties, you still need to pay the tax
Tax is on the growth since leaving the Uk. Being defined benefit there is effectively no growth as its based on the service I had there which does not change. The transfer value changes but the service portion does not. I have worked in financial planning and a number of UK expats have avoided tax when transferring defined benefit plans based on length of service. I'm also not sure about the FIF rules as essentially any transfer value is only guaranteed for a short time and in theory any new request for a transfer value can be higher or lower. In reality they have always got higher but I think there is a bit of a loophole when it comes to defined benefit funds with no unitisation or certain value at any given time.
Anyone else have no idea??
I just work, and i'm sure the minimum is going to Super from my employer… I don't fuss about it. (Or maybe I should????)
You need to check your fees in the super fund. Some of them take a lot, they take some for putting money in and some as a yearly % commission. It doesn't take much to run a super fund, just invest it in stuff and add up the numbers at the end of the year.
Also, if have over $50k, move to a cheap SMSF like esuperfund, etc.
same I work part time sporadically due to uni and although I know I have some sort of super I have no idea whats in it (I dont even think I quite understand what super is even lol)
28 years old.
$45,000.00 in super. Only employer contributions.Not everyone here was born here and started contributing since 19 years old. In fact so many people migrated here when they are in their 30s or even older and hence many have not had the complete work cycle as if they were born here. This therefore disadvantaged when comparing. A migrant who just arrived here to work in late 30s might find his/her super wanting, even when he turns 50s as they only would have made their first contribution at late 30s, as opposed someone who was born here having made their first contribution in late teens or early 20s.
Insurance payments eats up your super faster then shopping at Coles. Be very very careful not to fall for the insurance trap.
Very very few people are able to claim super insurance for benefits. So it's wasted money.22yo, only started working part-time/casual since I turned 19. I quit my job at end of last year. Balance is sitting at roughly 5k. Was a bit higher but didn't realise that they were making deductions per week for life insurance and whatnot. Fixed that up a few months ago by cancelling it until I find a permanent full time job.
Have 65k and am 32. No self contributions all funds coming from work