The good news when you're 35 is that, no matter the size of your superannuation balance, there's plenty of time to do something about it.
That also means that even small adjustments made now can compound into large benefits by the time you can get access to your superannuation at age 60.
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So, how much superannuation does the average Australian have at this age?
Figures compiled by the Association of Superannuation Funds of Australia (ASFA) indicate that men aged 35 to 39 have on average $96,122 in superannuation, while women have $76,020.
Interestingly though, if you put age 35 into ASFA's Super Detective calculator, which tells you how much you need at that age to be on track for a comfortable retirement, it comes up with a figure of $118,000.
This indicates that most people are likely to come up short when it comes to being able to afford a comfortable retirement.
And ASFA's figures are calculated based on the assumption a retiree owns their own home and will draw a part pension from the age of 67.
The magic of compound interest
So, what difference can making some extra contributions to your superannuation balance make by the time you retire?
A good way to figure this out is by using the Federal Government's Moneysmart superannuation calculator.
Using this tool, we can show that by contributing just $20 per week extra to your superannuation from the age of 35, you would end up with $30,558 extra by the time you hit 60.
If you increased the contribution to $100 per week, you would end up with an extra $152,790.
Extra contributions can be tax effective
So, what are the best ways to increase your superannuation contributions?
The easiest way, if you are a salaried worker, is to salary sacrifice part of your pre-tax pay into superannuation.
This salary sacrificed amount is taxed at 15%, rather than your usual tax rate, so this is a tax effective way to contribute.
You can also make a lump sum concessional contribution, which will also be taxed at 15% once it is in your superannuation.
A notice of intent to claim must be lodged with your super fund for concessional contributions so they know to deduct the 15% tax from the amount.
It's important to keep in mind that the concessional contributions cap is $32,500, with this amount including your employer's contributions, salary sacrifice, and concessional contributions.
If funds permit and your superannuation balance was less than $500,000 in the last financial year, you can also carry forward any unused concessional contribution cap amounts from the previous five financial years, with this amount able to be found in your myGov account.
It is also possible to make non-concessional contributions up to $130,000 and to contribute more than this amount using the bring-forward rule.
