Get SASS Smart program

Paying off your mortgage versus making extra contributions to your SASS

For most people, paying off their mortgage as fast as possible is very sensible. However, for members of a defined benefit scheme such as SASS, it might make better financial sense, depending on your circumstances, to maximise your scheme benefits by making additional contributions.

In turn, this could increase your employer-financed benefit.
This is because the potential benefits from your scheme could be greater than the interest savings you could achieve by reducing your mortgage. But of course, this does depend on your personal circumstances.

Maximising your benefit entitlement can also have a financial benefit for you and your family if you are retrenched, suffer a total and permanent disability event, or die. Working closely with a financial planner can help you make the right decision for you.
 

Maximising your accrued benefit points will optimise your final SASS benefit

As a member of SASS, you can take steps to maximise your benefit.

You can do this by increasing the employer-financed benefit and the personal contributions you make.

Before diving into the detail, here is an overview of the core SASS benefits.

Your contributor-financed benefit (Personal Account)

This benefit is made up of your personal contributions and investment earnings, less fees.


Your employer-financed benefit 

This is the net benefit you receive and could be up to 4 times your final average salary on retirement.


Your basic benefit
This net benefit is about 2.55% p.a. (after tax) of your final average salary for service from 1 April 1988

Contributions from your salary

You can contribute between 1% and 9% of your salary to your SASS account. Each 1% of personal contribution gives you to 1 accrued benefit point.

You can accrue a maximum average of 6 accrued benefit points per year (up to 180 accrued points in total).

For each accrued benefit point (up to the maximum), you will also receive an employer- financed contribution of around 2.125% of your final average salary (or 2.55% if you are from a particular predecessor scheme). If you haven’t maximised your accrued benefit points, you may still be able to catch up.

If you choose to contribute more than the maximum average of 6% per year, the excess will still be added to your personal account. It will be invested in line with your selected investment strategy. In simple terms, increasing your contributions gives you the ability to increase the benefits you receive when you exit your scheme.

To find out more about making the most of your SASS scheme, you can find a free SASS seminar.

¹ Financial advice services are provided by Aware Financial Services Australia Limited (ABN 86 003 742 756, AFSL 238430), wholly owned by Aware Super.

Your final SASS benefit can have a big impact on your retirement lifestyle. In this case study, we explore how your contributions can impact your final benefit when you exit the scheme. 

See how your employer-financed benefit portion of your SASS benefit increases, as you increase the level of your personal contributions. You might be surprised at the difference you can make.

Kate, SASS member, age 55

Meet Kate - she's 55 and planning on retiring in 5 years. Although Kate has been a member of SASS for 34 years, she has only accrued 102 points when the maximum points her employer has made available to her is 180.  

If Kate continues to contribute to the scheme at 3% she will accrue an additional 15 points (3 points x 5 years) by the time she reaches retirement.

Swipe table to view more

In 2024, Kate attended a SASS webinar about making the most of the scheme. She realised she had been missing out by contributing only 3% instead of the optimal 6%. By year's end, she increased her rate to 9%, effective April 2025. Though this reduced her take-home pay, she considered the substantial retirement benefits to be worth the challenge.

If Kate increases her contribution rate to the scheme to 9% she will accrue an additional 45 points (9 points x 5 years) by the time she retires. 

As well as seeing the additional contributions from her salary being added to her personal account and invested, Kate will also have a substantially higher employer financed benefit. If Kate’s final average salary at retirement is $100,000 her employer financed benefit will be approximately $367,500 an increase in her employer financed benefit of approximately $75,000.

See how Kate’s contribution rate can impact her retirement

To find out more about how SASS works go to contribution caps and SASS 

This example is for illustrative purposes only. It relies on various assumptions. If actual circumstances differ from these assumptions, actual results will be different.

In this example, if Kate increases her contributions from 3% to 9% she will lose the contribution cap protection, if she has contribution cap protection. 

Before changing your SASS contribution rate, it’s important to understand you may lose a special contribution cap protection. By changing your contribution rate may mean you lose the special condition for SASS members, which deems all before-tax contributions to be within the cap limits. SASS will report only the amount up to the cap to the ATO for members with this special contribution cap protection. Members lose this special condition if they move to a higher benefit category than the category they were in on either 12 May 2009 or 5 September 2006.   

Before opting to salary sacrifice into your super, it's important to assess your current financial situation and work out how much additional money you can afford to contribute to your super. It's also vital to understand that money contributed to super typically cannot be accessed until you meet a condition of release, such as retiring and reaching the preservation age. If you can make it work, though, diverting extra cash into super contributions is one of the best ways to increase your retirement savings. 

Contribution cap protection

To find out if you’re eligible for contribution cap protection, call State Super Customer Service on 1300 130 095 or check under your most recent statement under ‘Your membership details – Contribution cap protection’.

Decisions you make about your SASS scheme now can make a difference later on

Longer life expectancies mean that many Australians can look forward to potentially spending 20+ years in retirement. With Australians living for longer it is more important than ever to make sure your savings will go the distance.

When you maximise your SASS benefit, it means you’ll retire with more money. In turn, you can fund your retirement for longer.

The investment option you choose for your SASS scheme can make a big difference to your final benefit amount. But it’s a decision that many SASS members don’t realise they need to make.

In Step 2, the core SASS benefits outlined were:

• the contributor-financed benefit (Personal Account)
• your employer-financed benefit
• your basic benefit.
   

Your employer-financed benefit and SANCS lump sum basic benefit is the defined benefit part of your scheme benefit.

A unique points formula calculates this defined benefit. While you’re contributing to SASS, these parts of your benefit are not affected by market conditions.

On the other hand, the accumulation side of your benefit (known as your personal account) is invested in the market.

As a result, the final value of this benefit will be impacted by market returns.

This is different for deferred members. If you have deferred your SASS benefit, then all of your money is invested and subject to market returns.

The scheme provides you with a number of investment options for your personal account. If you’re a deferred member, this is your personal account and employer-financed benefit.

You can select one or a combination of the following options:

• Growth
• Balanced
• Conservative
• Cash.
   

Your default investment option

If you don’t make an investment choice, your money will be invested in the Growth option.

Your default investment option when you defer your benefit

If you don’t choose an investment option when you defer your benefit, your money will be invested in the Growth option. When you turn 60, your money will be automatically switched to the Balanced option.

You do not get an investment choice for the SANCS portion of your benefit. This is invested in the trustee selection.

The option that’s best for you will depend on several factors.

Some of the factors you might think about include:

• the amount of risk you’re comfortable with
• the level of returns you’re looking for
• how long your money will be invested for.
   

It’s important to regularly review your investment option to make sure it’s suitable for your stage of life.

This information is general information and does not take into account your personal objectives, financial situation or needs. Before making any decisions based on this information you should consider its appropriateness to you. We strongly recommend that you consult a financial planner before taking action based on this information. Further information and disclosures can be found in our Financial Services Guide.

Issued by Aware Financial Services Australia Limited ABN 86 003 742 756, AFSL No. 238430. Aware Financial Services Australia Limited is wholly owned by Aware Super ABN 53 226 460 365. The trustee of Aware Super is Aware Super Pty Ltd ABN 11 118 202 672, AFSL 293340.

Financial advice services are provided by Aware Financial Services Australia Limited (ABN 86 003 742 756, AFSL 238430), wholly owned by Aware Super.

The average retirement age of SASS members is 63, but this may not be right for you

“When should I retire?” is one of the most common questions SASS members ask us. When making such a big decision, there’s always a lot to consider – what works for another SASS member, might not work for you. Before deciding when to retire, it’s important to consider the factors that can determine the right time for you. These factors could be both financial and non-financial.

If you decide to ease into retirement, there are strategies available to help you gradually make the transition. A retirement transition strategy could provide you with an opportunity to explore new hobbies. It could help you start planning what you might like to do when you’re fully retired.

Ask yourself:

• How much longer do I need (or want) to work?
• Should I work part-time?
• How will leaving work affect my end benefit?
• Should I reduce my hours or shift work?
• Should I take my long service leave?
   

Be mindful that the decisions you make around your employment can could have a big impact on your final benefit. By understanding this impact alongside your retirement goals, you’re in a better position to make decisions that are right for you.

Planning a smooth transition into retirement is a balancing act. It balances maximising your SASS benefit while making sure you retire at a time that’s right for you.
 

Financial advice services are provided by Aware Financial Services Australia Limited (ABN 86 003 742 756, AFSL 238430), wholly owned by Aware Super.

In retirement, your money won’t be protected from the ups and downs of investment markets

As a contributing SASS member, a large part of your benefit is based on a formula, so the majority of your money has been protected from market risk. If you’re a deferred member, you will already have exposure to market risk in your SASS deferred account.

When you retire, you’ll be responsible for the full amount and will need to decide how to invest your super. It's your responsibility to give yourself the best chance of having enough income for the rest of your life.

In retirement, getting your investment strategy and timing right is crucial. The years just before and after your retirement are known as the “retirement risk zone.” Investing decisions are really important during this time. It's when your super at its peak in value.

If some (or all) of your super is invested in assets that are linked to market performance, a downturn in the markets could expose you to a significant fall in value.

So if, for example, you make a withdrawal during a market slump, it may lock in losses, leaving you with less money invested to earn an income from.

Informed choices about your investment strategy can make a big difference to your retirement. It’s a good idea to seek professional advice from an expert.

Financial advice services are provided by Aware Financial Services Australia Limited (ABN 86 003 742 756, AFSL 238430), wholly owned by Aware Super.