The value of small, regular contributions might surprise you

When you’re working, paying bills and juggling a range of financial and lifestyle commitments, growing your super might not be high on your list of priorities. But it might surprise you to know that adding small amounts early can make a big difference to your future savings.

Here are some great reasons to make small, regular contributions to your super today so you can make the most of your retirement savings in years to come.

Support your employer contributions or sustain a career break

In Australia, employers make compulsory contributions to your super as part of your pay. This is known as the Super Guarantee. Rather than relying on these contributions alone, adding your own extra contributions can help you grow your balance, which can be beneficial to your balance over time.

If you take a career break, making your own contributions could be the best way to grow your super balance if you don’t have Super Guarantee contributions being paid into your account as usual.

Your longer investment timeframe

If you’re decades away from retirement, you have plenty of time for your investment to grow in value. It’s normal for investments to go up and down in value in the short term, but the more money you have in your super, the more your investment can potentially grow over time.

The power of compound interest

Compound interest is a powerful concept which works over time. It starts small but gathers momentum as the years go by.

Compound interest means earning interest on your interest. Like a snowball rolling down a hill and growing larger as it rolls, your super can also expand the longer it is earning.

Here’s an example combining the power of compound interest with salary sacrifice to show compounded growth over time.

Small contributions can really add up

Small contributions can make a big difference to your balance over time, especially if you can contribute regularly and over a number of years.

In the same way you might go to the gym for health benefits or skip a takeaway lunch to help save towards a future holiday, making small contributions to your super is a great way to invest in your future self.

When you align your own contributions, such as a salary sacrifice arrangement, with your pay cycle, the funds are taken out of your pay before it hits your bank account. Giving up a small amount of each pay could help to grow your super significantly over time.

It’s never too early to start

Contributing early in your career – or earlier in the financial year - means time does most of the work to grow your super.

Discover the different ways you can contribute to your super.

Learn more about the benefits of contributing to your super.

Try our contributions calculator to explore how small contributions could make a difference to your retirement savings.