It’s worrying when markets fall, even though market volatility, or ups and downs, are a normal part of investing. When markets drop you might see low, or even negative returns from your super in the short term. And it probably feels like the worst time to contribute more to your super.
The fact is though, that just the opposite could be true. When markets fall, it can actually be a good time to contribute more. That’s because investments cost less when markets are down, so you can buy more at a lower price, like buying at a discount. History tells us that over time markets recover and rise again, and as this happens you will benefit from growth in the value of your investments. It’s important to get good advice to make sure salary sacrifice is a good option for your own personal situation as this is general advice only.*
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* Salary sacrifice will save tax in many but not all circumstances and will cause a reduction in your take home pay. Before contributing, consider the relevant superannuation thresholds including the current annual limit for all before-tax contributions and after-tax contributions. Exceeding any of these thresholds, may reduce any tax benefits you could receive. For further information see aware.com.au/grow.