Should I put extra money into salary sacrificing for super or an
offset account for my mortgage?
Q.
I am 33 years of age and earn $186,255 gross, plus compulsory
superannuation of $13,745. This is an increase from last year's
salary of $158,871 gross plus compulsory superannuation of $13,129.
I was minded to apply most of this increase as salary sacrifice;
however my girlfriend wants me to put this money instead into the
offset account for our mortgage. We obtained a 25 year housing loan
of $499,000 last year, which is half fixed and half variable. We
paid $624,000 for the property. I am anxious about my failure to
keep my superannuation contributions commensurate with my salary
but am also concerned given market conditions that I might be
better following my girlfriend's advice. What do you think?
A.
In market conditions like these you should be maximising your
super, not holding back. However, because you are only 33 money in
super is inaccessible until you are at least 60. Consequently I
tend to favour your girlfriends advice and suggest you use the
after tax dollars to reduce your mortgage.
Each week financial advisor Noel Whittaker answers your
questions.
