Salary packaging, often referred to as salary sacrificing, is one of the easiest strategies to implement to get ahead financially. Simply allocating an amount from your pre-tax salary into your superannuation account could mean the difference of thousands of dollars at retirement age. Salary sacrificing is one of the best tax effective financial planning strategies that can be utilised.

If your employer allows you to salary sacrifice, you can contribute an amount of your regular salary, or any bonuses you receive, by having an agreement in place. Your savings in your superannuation will grow in a tax effective environment, and enjoy the benefit of compounding interest, so that you build up a nest egg for your future.

The following table (click to zoom) shows how much you need to save per month to reach $600,000 at age 65*. It shows what a difference a small amount can make, and the sooner you begin the greater the effect.

* Assumptions: Excludes any individual taxation circumstances, and ongoing fees and charges. No tax payable upon commencement of retirement. Returns are pre tax. Retirement at age 65. Past performance is not a guarantee or an indication of future performance. Assuming an annual return of 6.8% per annum, compounded daily. This information does not take into account your personal objectives, financial situation or needs. Seek professional advice for your own particular circumstances.