While i’ll admit that I did question this decision constantly over the last few months.
Why do I not want to contribute more to super? I still have about $14,000 of concessional contributions available to me..
Tax deductions left on the table… Agony #FWP.
Crazy I know.
However, each time I have come to the same conclusion.
I have at least 31 years before I can access Super…! That is a very long time, and likely to be longer by the time I get there.
Even if I contribute absolutely nothing to my account for the next 31 years I will have approximately $560,000 (based on a 7.5% rate of return), this equates to approximately $22,400 a year. (about what my annual expenses are currently)
Given this little bit of information technically I never need to contribute to super ever again. And if I add in the age pension, this looks even better 🙂
But, the reality is. I still have some ways to go in my work life so that I can hit my FI number, that means more work and effectively more super.
So for now I will forego the added tax benefit and this new home super saver scheme (as it is way to complicated at the moment). Potentially I will look at the NHSSS next year, depending on where things are at.
Every dollar I have invested outside of super is putting me one dollar closer to my FIRE number!
What are your thoughts? Are you contributing more to super this year?