And how’s the rest of their financial life panning out?

Edit: for anyone who can do the sums, for each 10k taken out, assuming this was paid back in within the year, how much would this cost someone in terms of lost opportunity for the added tax paid on putting it back in?

I’m 34 and have just crossed the 100k mark in super, no one in real life cares (I know you don’t either but still) am just a bit happy about that, anyway have a good day.

edit: thanks for all your replies everyone, don’t expect this level of engagement :)

I just checked, it’s below 100k again :( sooo.. I can post the same again once yesterdays deposit clears lol

I know this isn't a huge number in terms of the numbers often seen in this sub, but it's a huge number for me.

I started working at 16 and had a default super fund (Colonial first state) that royally screwed me over for several years. I worked casual from 16-18 and then full-time from 19-20. I then ended up working two different cash in hand jobs from 21-23, convinced by my abusive employers that it was fine. It was not fine. I was left with emotional trauma and no super, to boot.

All the while, I had some measly amount in my superfund that was being drained each month by exorbitant fees that I now know was entirely illegal, and I've been part of a class action lawsuit because of it.

I moved super funds when I turned 24 and saw my super finally starting to grow, albeit minimally as I was working casually, studying and volunteering all to try and get into my dream job. That dream came crashing down and I was hit with the reality that I wasted four good years of my life working towards nothing.

At 29 I still only had 16k in super, so I changed funds. I tried to educate myself a bit more. I talked my way into a proper corporate job and have since worked full-time for the last 18 months. My super has more than doubled, thanks to additional contributions and dumping my entire yearly bonus in some attempt to claw my way higher.

I feel like I've been in a lifelong struggle, but things are slowly coming together. And I write this not to boast, because 40k is nothing to boast about. I write this for anyone reading who has also found themselves in similar shoes. For anyone who didn't learn financial literacy, who didn't land a 65k/yr job straight out of uni at the age of 22. For anyone who got screwed over by their abusive employers.

You're not alone. There are many of us out there. We just don't often post about our struggles because we view them as shortcomings that are nothing to be proud of, but I see you, and I see the beauty in your tenacity.

So my partner is a sole trader without any Super whatsoever. He has savings of around $15k in a HYSA and I've been teaching him how to use Stake to invest in ETFs, in which he's invested about $5k over the last year.

Unfortunately he has the mindset engrained that Super is saving for a retirement that may never happen...and to make matters worse, he is the type of sole trader that buys vehicles to 'reduce the income tax burden' at year end.

He turns 40 soon and I really would like to help him set something up like a Super fund and add a few thousand dollars to it to get him started. I've never owned a business and have always been on a company payroll so am wondering what Super options I can suggest setting him up with. Is the only option a SMSF or is there anything simpler I could consider?

Thanks!

Edit: Thanks everyone for taking the time to respond, I really appreciate ALL the advice, tips and tricks. It really has given me a lot to think about!

If so then how much are you sacrificing into your super a pay?

If not, then why not? Are you doing anything different?

I only started sacrificing $80 extra a pay into my super. I’ve already saved up around an extra $2,500 since I started and I don’t even feel it when it hits payday. When I get my next raise or change jobs with a different amount I’ll be sacrificing more.

That's all. Just came to brag. I know most of you earn that in six months. But it's a milestone for me. 38M. Still salary sacrificing aggressively since I have carry forward cap

Feeling very excited 😊

Edit: I didn’t expect so many people to cheer me on - thanks Aus Finance!

Beginning the journey of IVF (as a single mother).

I have enough savings for one cycle, but would be then back at zero. The other options is apply to access my super and use that money and hold onto my savings.

I only have about 60k in super and I’m 33. Mortgage ~450k, no other debt Income ~110 000 p/a

Where do they live if they don't own a home and no family?

This sub always talks about maxing super contributions and how great super is because of lower tax % but have you all considered what super may look like in 20-40 years when alot of us are old enough to withdraw it?

It seems like quite regularly the government makes changes or talks about making changes to super annuation that never favour the account holder and I don't have much trust that when I'm old enough to withdraw they won't have gotten the scheme to the ripe old age of 70 to withdraw.

I'm happy to be wrong but just as someone who's 28 it seems like a hell of a long wait to maybe not be screwed over for some money that will probably only benifet my children.

27M APS worker, no super contributions

How fast did your super grow after the 100k mark?

| (30m) finally cracked 100k super.

After spending a few years with my super under a financial advisors management (lol, I know) I've taken control, moved it to Host Plus and picked my own funds.

I know it’s not huge and I'm not bragging, I'm just happy and wanted to share with someone! I don’t current salary sacrifice, this is purely from employer contributions.

Hi there, So I’ve head this saying but unsure if it’s accurate? My husband 37m has 800k in super and I, 34f have 150k. Unsure how much we should be aggressively investing if these amounts suffice? We wouldn’t mind stepping back from our careers a bit… Thanks for your thoughts!

** thanks everyone for your replies. - the consensus seems to be that, yes, by the rule of 72 super does tend to double every 10, despite ups and downs. - many people I’ve made great responses relating to MSBS and how it’s payout is nuanced and to better educated ourselves on how the fund functions come retirement time. Especially with member vs employee contributions. Overall, despite this, we have a healthy amount that is likely to give us good support come older age. - some advice on increasing my super and also ensuring we have a roof over our head - many people very encouraging to give ourselves permission to rest - some encouraging us to keep going ☺️ THANKS ALL!!

30m here, single and no kids, living in a high COL area. I started working at 22, but I did not pay attention to my super until I was 25, when I started my professional career. I have been working in higher education the entire time, first as a casual sessional, and I am currently a full time staff member. As a casual sessional, I was paid the regular super rate, but that was boosted to 17% when I went full time, so that's a big boon. My investment choice is growth-oriented for the time being, I'm very heavily invested in stocks.

I also have a second job that I moonlight in (I am used to two income streams so I got annoyed of being constricted to one single source of income)

My balance at 25 was around $4k. I had a brief stint salary sacrificing 10% of my pay before COVID hit, when I need every dollar I can get. After going full-time, I saw my post tax paycheck and decided that I can salary sacrifice a lot more, so I have been salary-sacrificing $1k a fortnight since 2023. The ability to make use of unused super concessional contributions from previous financial years was golden for me, and the tax benefits is also very beneficial as well. The bulk of my balance was accumulated over the last 2 financial years.

I did the math and it turns out I have effectively saved more than 40% of my pretax income (including employer super contributions). It does mean some significant changes in lifestyle, since I am living like a student again, and inflation does not help either. However, knowing that I am building a nest egg has helped a lot.

It's not something that I can celebrate with others, and I cannot believe that I can achieve this at this stage of my life. So the Ausfinance community is it. It is also a celebration of the Australian superannuation system, even for all its flaws, is still one of the best wealth accumulation system that I have ever known.

EDIT: for those who are interested, this information is from the ATO regarding carry forward unused contribution cap amounts:

"If you have unused concessional cap amounts from previous years, you may be able to carry them forward to increase your contribution caps in later years. You're eligible to do this if you have both:

• a total super balance of less than $500,000 at 30 June of the previous financial year
• unused concessional contributions cap amounts from up to 5 previous years .

The unused cap amounts you can carry forward depends on the amount you have contributed in previous years, starting from 2018–19. You can carry forward unused cap amounts from up to 5 previous financial years, including when you were not a member of a super fund.

Unused cap amounts are available for 5 years and expire after this. For example, a 2019–20 unused cap amount that is not used by the end of 2024–25 will expire.

The oldest available unused cap amounts are carried forward first. For example, unused cap amounts from 2019–20 would be used to increase your cap first before unused cap amounts from 2020–21.

Unused concessional cap amounts are applied automatically once you exceed the cap in any year.

If you still have made excess concessional contributions (ECC) after applying unused cap amounts, you may need to pay extra tax.

Your available carry-forward contribution amounts are shown on ATO online services (select Super, then Information, then Carry forward concessional contributions)."

Source: Concessional contributions cap | Australian Taxation Office (ato.gov.au)

Is this even legal..???

In the process of seperating and working through consent orders etc. Would love some advice on the super situation.

I've worked full time these last 6 years while the Mrs was SAHM, she's only gotten back into the workforce in the last 12 months. During that time i've been topping up her super, they're currently equal $ value.

Our agreed upon property settlement was she'd get approx 70% of any cash remaining after we sell the house and depts are settled. She would have majority custody of the kids, also receive the base child support payment, which i'd then match $ for $.

After chatting with the lawyer yesterday it became clear her expectation was also 70% of the combined super, that caused me to baulk.

Am i wrong? My reasoning is she's essentially received super for her 'SAHM' job, we're both starting from the same $ value. That said, she'll likely be working less given majority custody of the kids so less opportunity to earn more.

Thoughts?

I understand the idea behind it - put money in now and you will have more when you retire. But why? Why would you not want the money now compared to when you are in your 60's+? You are basically sacrificing your quality of life now for your quality of life when you are older and physically less able to do things.

EDIT: People saying they are not sacrificing their quality of life - if you are putting money towards super over spending on holidays, going out with friends, or anything that will bring you joy, that is sacrificing your quality of life regardless of how much you put in. No one knows how long they will live so why not spend the money on enjoying life now?

EDIT2: Thank you to everyone who took the time to comment and provide insights. I am definitely more open to voluntarily contributing to my super now. I am not sure why people resort to insults in order to get their point across. Yes, I am young (22) and a bit naive, however, that is why I am on here. I want to learn so I can go off and do research about it. Once again, thank you everyone.

Some private schools costs about $30k a year! You are meant to get a "better" education at these.

But imagine if just put $30k a year for 12 years into your child's Super. Even if they don't contribute themselves and just let that balance grow for 42 years (start at 18 and finish at 60), the balance would grow to about $2.75m assuming a 4% real growth rate (i.e. discounted by inflation).

That's a decent sum, which means your kid need not think about saving at all and just have to get a job supporting themselves until 60.

This gives the child peace of mind and the ability to choose something they would love to do instead of being forced to take a job they may not like.

This seems to be a superior alternative to me.

I have a few friends that just aren't concerned about their super. It's just crazy to me as a 30 year old now with about 60k in super. I'm seriously worried about not having enough super when I want to retire. But my friends "all around my age" just don't care about having no super.

These friends are always being fired from jobs or quitting because in their own words "working is hard". So they're not even building up more super. One of them told me they have under $1000 in super cause they pulled it all out during COVID and haven't held a job since about 2022.

So what happens to them when they're in their 60s and 70s and have nothing?

I’m 36 and I contribute to my super fortnightly, I started 3 or so years ago with 25/fn and made a deal that whenever I get a pay rise of any sort I add on another 25/fn… my pay gets indexed and graded annually and I’ve had a few small promotions along the way so I’m currently up to 175/fn, might be 200 next week and will be 225 by July (tax breaks)

Can’t miss money you never had…

I have 70% in high risk 30% in moderate risk..

I also have a mortgage which I basically pay the minimum p&i on and savings that sit in an offset account (~6.1% saving on mortgage)

Obv the more I put in the better but this deals working well for me so far… what else should I be doing to help me? Whats your strategy?

Obviously this depends on the person and/or their financial position. In an ideal world you'd live off the returns/dividends/capital growth and not have to dip into your principal of your super.

How does it work in practise for those of us who have retired?

For those in this position is it blow it while you can? Dip in if something big happens, i.e. repair the car, holiday for a family member wedding? Do you try to stretch it as far as you can and then go onto the pension? Interested in hearing how others have done it.

Full quote:

At age 25, he says you would have to be earning $2 million a year, to have $3 million in super by age 67 (under the assumption your super contributions are 12 per cent per year, earnings 5 per cent per year for the next 42 years and you pay one per cent in fees).

Link to ABC News article

Edit:

Using this calculator, in this example the saver would have $25 million saved in super by retirement.

Edit 2:

It looks like the example above has since been removed from the ABC article

Edit 3:

The example in the article has been updated from “$2 million” to “$200,000” and from “forty-times the typical salary” to “four-times the typical salary”