The importance of contributions

Contributing a little extra to your super now could make a big difference to what you have in your retirement purse.

Experts say that the Government legislated 9% Superannuation Guarantee contributions are not enough to maintain our lifestyles in retirement. Yet increasing life expectancies make it even more important to consider how you will fund your retirement.

It's easy to be intimidated by the huge totals we're told we'll need when we reach retirement. Getting from where we are now to that distant goal can seem too big a step to think about. But you can make a difference to your retirement benefit with additional contributions.

The sooner you start to contribute the better, because you benefit from years of compound interest to grow your balance. Each dollar contributed to super in your 20s is worth about 8 dollars contributed in your 50s, so contributing as early as possible could save you a lot of money in more ways than one.

To get you started, explore:

• The difference extra contributions could make to your retirement benefit.
• Types of contributions you can make to your super.
• The choice between pre and post-tax contributions and which type may be best for you.