Even a little can go a long way
If you start early, a little money now can grow to a lot of money for you when you retire. The key?
Take a look why:
Compounding is the ‘snowball’ effect of investment returns earned on your investment returns.
It happens when you reinvest investment returns (as you must do with superannuation) rather than withdrawing and spending them. If you do this, compounding can result in your savings accumulating faster.
Learn more about investments
Time can equal more money
Meet Sue and Ewan. Both UniSuper members. Both 60 years old. Both have been regularly topping up their super with extra contributions.
Sue has been investing $2,000 each year (less than $40 a week). Ewan $5,000 each year.
Even though Sue has invested less money in total than Ewan, she is more than $125,000 richer.
Sue had more time.
Sue's 15-year head start means that her money has had more time to benefit from compound interest.
Data assumes an investment return of 8% p.a. No allowance has been made for taxation or investment fees and charges. Lower investment returns and/or periods of market volatility, and the factoring in of taxation or investment fees and charges would affect the analysis and could change the comparison.
| Starts investing at age
| Invests until age
| Investment timeframe
|| 35 years
|| 20 years
| Investment per year
|| $2,000 p.a.
|| $5,000 p.a.
| Total amount invested
| Investment value at age 60
This example is for illustrative purposes only and does not relate to any of UniSuper’s investment options.
Figures are in today’s dollars and have not been adjusted to reflect the likely impact of future inflation.