Salary sacrificing into super is one of the more popular and tax-effective ways to increase your retirement savings. Salary sacrificing, by definition, means giving up some of today’s pay to receive a before-tax benefit to the same value.
Not only will you increase the amount of money you have available to fund your retirement, but because the amount you sacrifice is deducted from your assessable income, you may be able to reduce your current income tax liability.
Salary sacrificing could be a great way to increase the value of your retirement nest-egg for the future while giving you a tax advantage today. How much of your salary you divert into super will depend on your income, your taxation situation and your goals for retirement. Talk to the team at Ken Filbey Financial Services to see how much you would benefit from salary sacrificing.