Alex Jamieson: Workers can fast-track wealth by putting extra money into super each week

Many Australians are still struggling to build their wealth through superannuation due to lost super, minimal contributions and low-performing funds.
 

Leading financial expert Alex Jamieson, founder of AJ Financial Planning, is urging employees to take proactive steps to maximise their super to accelerate the growth of wealth and secure a better retirement.
 

"By making smarter financial choices today, Australians can significantly improve their superannuation and potentially retire earlier with more money in the bank which means greater financial security," Jamieson said.
 

"Many people already have the tools and source of income they need, they just aren't utilising them to their full advantage. For those employed, the answer is simple. Lean on your employer to pay more super on top of your wage or pay more of your wage into your superannuation fund at a concessionally taxed rate."
 

Jamieson has outlined four key things employees should do right now.
 

Review and optimise your super fund

"Everyone should regularly check their superannuation account to ensure they are with a high- performing fund. If necessary, switching to a better-performing super fund can lead to long-term financial gains," Jamieson said.
 

"There are plenty of comparison sites that show what type of return funds are achieving and how much they are charging for administration and management. If your fund is consistently falling behind other funds and is charging more for the privilege, start looking around."
 

Negotiate increased super

"Many employees are receiving the minimum percentage of superannuation from their employer on top of their wages," Jamieson said.
 

"Employers must contribute superannuation guarantee (SG) payments to their eligible employees for ordinary time earnings and the rate is currently sitting at 11.5 percent. If your employer is keen to retain your services, endeavour to negotiate an increase in the percentage of
superannuation they are paying. While this will not increase your take home pay, it will increase the growth of your wealth through the power of compounding. Some organisations are paying as much as 17 percent in super."

Salary sacrifice for a tax effective boost

"Employees can request their employer to direct a portion of their pre-tax salary into their super account through a process known as salary sacrifice or salary packaging. This tax-effective strategy particularly benefits middle- to high-income earners. The current cap on concessional
contributions is $30,000 per year," Jamieson said.
 

"This is a very effective way to pay more money into your super fund and get the money working for you while paying less tax at the same time."
 

Ensure correct employer super contributions

"Employers must contribute SG payments to their eligible employees at least four times a year. While the current rate is 11.5 percent of an employee's ordinary time earnings this is set to increase to 12 percent on 1 July 2025. Employees should regularly check that their employer is making these payments correctly," Jamieson said.
 

"You would be surprised how many people are not aware that their employer has not been paying their super on time or correctly. The ATO takes this issue very seriously."
 

Seek professional financial advice

"You are never too young to secure a financial advisor. In fact, research shows that the younger you start working with a financial advisor, the better off your financial position will be later in life," Jamieson said.
 

"Consulting with a financial expert can help individuals explore strategies to supercharge their super and wealth creation options. A tailored financial plan can lead to better management, smarter investment decisions and ultimately, greater financial security."
 

Jamieson emphasised that the sooner employees take control of their super, the better their long- term financial outcomes will be. By making strategic changes now, Australians can enjoy a more comfortable and financially secure retirement.

About Alex Jamieson
 
Alex Jamieson is the founder of Melbourne-based advisory firm, AJ Financial Planning. With a firm belief in responsible investing, Alex crafts investment portfolios for clients that not only meet their financial objectives but are also sustainable and match their ethical values.
 
A highly respected financial advisor, Alex is considered one of the country's leading experts on all matters financial planning, investing and retirement.
 
http://www.ajfp.com.au/