During the pandemic, many people accessed their super and depleted it by up to $10,000. This money was used to pay off debt, fund a better short-term lifestyle, go on shopping sprees, or take a holiday.
At the same time, during the pandemic, the share market and property prices increased which would have meant that the $10,000 in super they withdrew would have increased significantly had they left it alone.
So, which is better – topping up your super or paying off your debt?
The general wisdom is that if you are under 55 you are better to pay off debt and if you are over 55 you are better to top up your super as a priority.
But what if you could do both?
One way to top up your super today is to reduce your debt, so you can free up cash to contribute more to your super, and a good retirement.
Solve My Debt Now can free up cash to contribute to your super now by:
- Reducing or waiving your debts
- Reducing, waiving or freezing your interest
- Freezing or reducing outstanding and ongoing fees and charges
Hear how Bec’s getting debt-free ⬇
So, why do we have super?
Superannuation, or ‘super’ as it’s known, is a method of saving for your retirement. While you are working, your employer puts a percentage of your salary into a special savings account held by a superannuation fund.
The fund’s job is to help your super savings grow so that you have money to live on in the future when you are no longer working.
When you reach the appropriate ‘preservation age,’ you can withdraw all of your superannuation if you’re fully retired, or up to 10 percent every 12 months if you’re still working.
The preservation age is the minimum age set by the government to access your super. According to the Australian Taxation Office (ATO) website, that age is currently 55 to 60, depending on when you were born. At 67, you have access to all your super, whether you are working or retired.
So now is the time to solve your debt problem and top up your super, so you can become financially free now and into the future.
Call the Solve My Debt Now specialist team today on 1300 070 672 or email help@solvemydebtnow.com.au
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