Co-contributions in action

Mandy is 30, and earns $30,000 a year. She and her husband are planning a family over the next few years which means she'll be taking a couple of years off. Mandy has an idea that she'll retire at 65, and didn't think she needed to contribute any additional money to her super. At this rate, with a few years off after the family gets started, she'll have a benefit of around $130,000.

That seems pretty good, but if Mandy contributes an extra $20 per week to her super, how much better off could she be?

Why the difference? Because as well as making her own additional contributions the Government through their co-contributions scheme has deposited $1,400 per year into Mandy's super account. That's an extra $27 a week that the Government pays Mandy for contributing to her super! It certainly has made a big difference to Mandy's end benefit - over $170,000 worth.

Calculations based on an investment return of 6.95% per annum (net of all fees, expenses and taxes) and compounded over 35 years (not including inflation on salary). This information is of a general nature only and does not consider your individual objectives, circumstances or needs. The past performance information included is not a reliable indicator of future performance. We suggest you consider this information in light of your own circumstances, and seek financial advice if required.