Your super is an extremely important investment because it’s likely to be your main source of income in retirement especially during the earlier stages. Super is also the most tax-effective way to save for your retirement, so it makes sense to make the most of the tax advantages. That is, your contributions are taxed at only 15 per cent which can be much lower than most peoples’ marginal tax rate which could be up to 47 per cent.
Your employer’s compulsory 9.5 per cent superannuation guarantee contributions are unlikely to be enough to give you a comfortable retirement. But, if you start contributing more to your super now you can enjoy a more comfortable retirement later.