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Compound Interest and Superannuation

Compound interest is what makes your accounts grow large over time and peak in the final years.

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ADF Super is what you will currently gain as you become a new ADF member. It is accessible from age 60. I was assisted setting mine up by the admin staff at my first unit. When you can access your own account you can find the ‘make extra contribution’ section and your unique account details.

Whatever your fortnightly pay, you will get a pre-deductions 16.4% match put in. That is taxed at 15% in the fund.

ADF Super has multiple benefits. Some of these are:

  • Switch investment strategies depending on your risk tolerance and time left to serve
  • Built in Life Insurance and Medical Discharge protection 
  • Low management fees
  • Sets you up for a better retirement than anything the UK Gov offer soldiers since the end of AFPS75

For non-serving dependants please see Choosing-a-super-fund.

Depending on your circumstances, using contribution allowances to compound your money can make millions of dollars difference to your ADF Supers final balance.

Your final ADF Super balance will depend on how much you put in early, how much you continue to contribute and the biggest factor:  TIME

Salary Sacrifice

salary-sacrificing can reduce your taxable income including your pension from the 30-45% brackets and can be done through smart.com. They are the exclusive appointed provider for defence. They also offer discounted vouchers and other packaging options.

Should any of your non-defence dependants wish to salary sacrifice they can discuss it directly with their employer in the 1st instance.