How to boost your financial future with just $20 a week

TWENTY dollars won’t get you too far these days: perhaps a handful of takeaway coffees, a bought lunch or two, or a single cocktail at a bar on the weekend.

However, $20 goes a long way, for a long time, in your superannuation.

Projections by super industry group ASFA show that salary sacrificing $20 a week into super can deliver a 20 year old an extra $435,000 in retirement, or $87,000 in today’s dollars. A 30-year-old can build an extra $198,000 ($55,000 in today’s dollars), for a 40 year old it’s $82,500 ($33,000) and a 50 year old gets $29,700 ($16,500).

ASFA CEO Martin Fahy said the numbers highlighted the power of compound interest over many years. “Even small amounts can make a big difference in the long term,” he said.

Dr Fahy said last month’s superannuation rule changes did not negatively affect most people’s super. “We encourage people not to be put off, and have confidence in the system — it’s still the best way to save,” he said.

ASFA is a key supporter of this year’s Super Booster Day campaign, which runs until September 15 and aims to highlight the long term benefits of making extra contributions to superannuation.

Salary sacrifice allows workers to save tax because their money goes into super before their marginal tax rate — of up to 47 per cent — is applied.

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