Posted on 20/11/2016
Renowned social commentator Bernard Salt caused a generational war of words when he suggested the youth of today would be better served foregoing $22 smashed avocado meals at hipster cafes, instead putting the money towards a home deposit.
His column in The Australian caused an angry reaction from Millenials, outraged at the suggestion their eating habits were responsible for the dire housing affordability predicament they find themselves in.
While estimates suggest it would take 175 years to save a home deposit at Sydney’s median price if you gave up a weekly serve of smashed avo, where the money could make a real difference is in superannuation. We’ve run the sums and you’ll be surprised just how much giving up a $20 weekly breakfast could add to your retirement savings. The results are astounding.
- Clients earning $60,000 at age 27, with wage increasing with CPI of 2.5%pa
- Retiring at age 67
- MySuper investment return of 5% p.a. (this rate already takes into consideration fees)
- Sue not making personal contributions
- Mary making personal contributions of $1,040 p.a. (equivalent of $20pw) – indexed to CPI of 2.5%pa
Past performance is not an indication of future performance.
Statewide Superannuation Pty Ltd ABN 62 008 099 223 (AFSL 243171) Trustee and RSE Licensee of Statewide Superannuation Trust ABN 54 145 196 298