SAHMs - Do You Still Make Super Contributions?

OK, so having worked hard to be financially stable and having been through a divorce, I think it would be a good idea for me to put money into my super while I'm a SAHM.

Basically I worked full-time until DD was born, on a good salary, but have since 'only' worked part-time for 18 months out of the last three years and may not work at all for the next two or three.

Yes, it's great that we have the financial flexibility to do that, but it also means that my super is not increasing.

So I'm thinking that DP and I should budget to put money into my super each fortnight. He won't have a problem with this, just wondering if anyone else does it?

We do it, actually Dh does it as a spousal contribution so he gets the tax offset as well. Otherwise I'd have enough to live on for 2 months is it were based on what I'd earnt alone LOL

Tell me about the tax offset Trillian - as DP will be the one working, that's the way we would do it too.

I don't know anything about the finer details of it - I just know that DH does it and the accountant sorts it out when his tax is done. Here is some info on it from the ATO Superannuation spouse contribution tax offset. I know there also used to be a co-contribution from the Govt of up to $500 if you contributed into it yourself but I'm not sure if they still do that or not.

I am going to put away money to invest in property and not contribute to super. Better returns and potential me thinks.

I have just started doing this, I am a SAHM however DH is self employed so we pay him minimal wages. Therefore we have started making contributions for both of us, otherwise if business was to go down hill in the future we could be in big trouble come time to retire. We are not paying that much but something is better than nothing, and as the kids get older and I hopefully go back to part time work we will increase the payments.

I think it's a good idea if you can afford to do it!!

I don't but keep meaning to set something up now that I've officially resigned.

Ive been wondering the same thing! Especially if im not contributing wouldnt my balance decrease with fees and what not?

Will have to give that link a look see Trill!

:

---

I am going to put away money to invest in property and not contribute to super. Better returns and potential me thinks.

---

Actually, I have read that it's not. I think it was something I read from Paul Clitheroe or one of those big financial dudes who said that if you had the discipline to do it, that you're better off renting whatever place you could afford to buy and putting the difference (between rent and what your mortgage would be) into super. The reason that property works for so many people is that it's forced long term savings and most people don't have the discipline to do it. I can't remember the finer details, or where I read it (it was years ago) but I'm sure there's lots out there on it.

Anyway, to get back on topic.... we are planning for DH to make the spouse contribution for offset purposes, and we have money currently saved that "I" will pay each year so I can get the co-contribution. So yes, we are. DH also salary sacrifices quite a lot in already, I think he's sitting on about 22%. We're not sure what we're doing property-wise in the future, because of our slightly nomadic life, so I guess you could say we're hedging our bets.

In an ideal world where there is enough disposable $$$ then yes. Esp to make the best use of the offsets & co-contribution thingies. In reality, there is no way we can balance all our expenses on one (limited) income and still make contributions to any worthwhile financial pursuits LOL. There just ain't enough to go round.

Also, we've been to see a fin advisor who recommended using as much of our income as possible to first pay off the mortgage as quickly as possible and then apply the newly freed-up income into bulking up both of our supers at a later time. So that's the plan.

We've got an IP so I'm salary sacrificing about 25% of my pay to super.