investing when you're under 30

In our 20s, and just starting out in the workforce, retirement can seem a long way off. But it’s important to take an active interest in your super from an early stage.

As a 20-something, time is on your side to make the most of compounding investment returns. Put simply, it means small sums can grow to something much bigger over time.

Staying in touch with your super throughout your working life lets you reap the rewards of compounding. But your super can also offer benefits far sooner.

First Home Super Saver

The First Home Super Saver scheme can be a handy way to save for a first home sooner. It lets you save for a home within your super, offering the combined benefits of tax savings plus the potential for higher returns to help grow your deposit. There are a number of important things you need to know before using the FHSS scheme.

Keeping your super in your hands

During your working life, it’s important to take your super with you from job to job. Even in your 20s, you could have more than one fund if you’ve had more than one job.

If that sounds like you, it’s worth consolidating all your super into a single Active Super account. This helps you stay in touch with your super while saving on fees and other charges. There are benefits and risks with super consolidation so ensure you know how you will be impacted.

To check if you have more than one fund and roll over your other accounts into Active Super, log into Member Online and click the 'Consolidate super' tab. Or, log into ATO online services via myGov.

Adding to your super

There is a variety of ways to grow your super. Salary sacrifice is an easy and tax-friendly way to make extra contributions. You can find out more here. 

Or you can make extra contribution from your own pocket (using after-tax money)1. Following a budget will help you manage your money, while identifying how much you can comfortably make in extra contributions. If you’re a low to middle income earner, adding to your super could see you eligible for a government co-contribution worth up to $500 annually.

1 Please note that there are limits on how much you can contribute to your super fund each financial year without having to pay extra tax. These limits are called 'contribution caps'. You should also take into consideration the fact that you can’t access your super until you meet a condition of release.