Could $20 a week make a difference to your retirement?

Title: Could $20 a week make a difference to your retirement?
Short description: Salary sacrificing just 1% of your income into super could make a significant difference by retirement over time. Here’s what the numbers could look like, and how to get started.
Topics: mlc:Topics/retirement
Time to read/watch: 5 min
Effective date: 2026-11-05 00:00
Feature Image: /content/dam/mlc/insights/images/Articles/2026/contributions.png
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Twenty dollars a week. That's a takeaway lunch, a few coffees, or the streaming subscription you forgot you had.

It's also roughly what salary sacrificing just 1% of the income into super could cost someone earning $105,000 a year. And according to MLC modelling, it could leave them more than $70,000 better off in retirement.¹ Not bad for the price of a few coffees.

Small step, big picture

When it comes to super, it's easy to think a real difference needs a big amount. But the retirement you're aiming for doesn't have to be built in giant leaps. Whether you picture a modest, luxe or champagne retirement, small and regular steps can help you move towards it.

What is salary sacrifice?

Salary sacrifice is an arrangement offered by some employers that allows you to direct part of your pre-tax salary into your super. You choose the amount, either a set dollar figure or a percentage of your pay.

There are two big benefits:

It happens automatically. Once it's set up, contributions come out of each pay without you having to think about it.
It may reduce your tax. Salary sacrifice contributions are generally taxed in your super at a lower rate than many people's marginal tax rate. That means the hit to your take-home pay can be smaller than the amount going into super. How much you could save depends on your income, so it's worth checking how it would work for you.

What 1% could look like

Let's take the example used in MLC's modelling: a 30-year-old earning $105,000 a year with a super balance of $100,000.

For this scenario, salary sacrificing 1% of salary means about $1,050 a year going into super, or around $20 a week.

It might not feel life-changing today. But according to MLC modelling, someone in this scenario could be more than $70,000 better off by retirement.¹

Around $20 a week today. More than $70,000 for your future self.¹

Why small amounts can go a long way

It comes down to time.

Every contribution you make has the potential to earn investment returns. Those returns can then earn returns of their own. This is called compounding, and the longer it has to work, the more it can add up.

That's why the earlier you start, the more time your contributions have to grow.

Not 30 anymore? It's still worth a look

If you're in your 40s or 50s, there's still time for extra contributions to make a difference. Many people also find they have more room in their budget later in their career, once the mortgage or childcare costs ease.

How to get started

Pick an amount that works for you. 1% could be a practical place to start, but choose what suits your budget.
Talk to your employer or payroll team. Ask whether salary sacrifice is available through your workplace and, if it is, how to set it up.
Check it's coming through. Log in to your super account to see your extra contributions arrive.

When it comes to retirement savings, consistency can matter more than one big change.

Before you make extra contributions

Salary sacrifice isn't right for everyone, so it's worth keeping a few things in mind:

Your money is locked away. Money in super generally can't be accessed until you reach your preservation age and meet a condition of release.
There are limits. Salary sacrifice contributions count towards your concessional contributions cap, along with your employer's contributions. Check the current limits on the ATO website.
There are other ways to contribute. You can also make after-tax contributions. These may suit you better depending on your circumstances. Find the option that fits your plan.

If you're unsure how the rules apply to you, consider seeking advice. If you are an MLC member, you can also contact us for help, or learn more about the eligibility criteria on our website.

Your plan, one step at a time

A glorious retirement isn't built in one go. It's built from small decisions made consistently over time. A 1% increase could be a place to start. Learn more about voluntary contributions, and if you’re an MLC member, log in to check your balance and contribute, if its right for you.

Let's plan your glorious retirement.

Our tools and calculators can help you see where you're at today and explore the steps you could take next.

Need help making sense of it all?

Speak to your financial adviser or, if you don't have one, book a call with one of our financial coaches. They're available to eligible MLC members.

¹Model assumptions: Based on a 30-year-old worker with a super balance of $100,000 on a salary of $105,000 p.a. Investment returns (after investment fees and tax) of 6.0% p.a. from age 30 to 55, reducing to 5.5% p.a. from age 56 to 67; SG rate of 12%; salary growth of 3.5% p.a.; and CPI inflation of 2.5% p.a. Variable administration fees and costs of 0.21% p.a. (pre-tax), capped at $1,000 p.a. Projected balances are discounted using CPI and presented in today's dollars. Worker projected to be $71,460 better off in retirement at age 67.

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Important information and disclaimer

This article has been prepared by NULIS Nominees (Australia) Limited ABN 80 008 515 633 AFSL 236465 (NULIS) as trustee of the MLC Super Fund ABN 70 732 426 024. NULIS is part of the Insignia Financial group of companies comprising Insignia Financial Ltd ABN 49 100 103 722 and its related bodies corporate (‘Insignia Financial Group’). This information may constitute general advice. The information in this article is general in nature and does not take into account your personal objectives, financial situation or needs. You should consider obtaining independent advice before making any financial decisions based on this information. It is recommended that you consider the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD) before you make any decisions about your superannuation. You can obtain the latest copy of the PDS (or other disclosure documents) and TMD by calling us on 132 652 or by searching for the applicable product at mlc.com.au. You should not rely on this article to determine your personal tax obligations. Please consult a registered tax agent for this purpose. Opinions constitute our judgement at the time of issue. The case study examples (if any) provided in this article have been included for illustrative purposes only and should not be relied upon for decision making. Subject to terms implied by law and which cannot be excluded, neither NULIS nor any member of the Insignia Financial Group accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in the information in this communication.

The Financial Coaches provide financial advice under the Australian Financial Services licence (AFSL) of Actuate Alliance Services Pty Ltd ABN 40 083 233 925 AFSL 240 959 (Actuate). NULIS has appointed Actuate to provide general and limited non-ongoing personal advice services (which includes simple super advice) to members of relevant products in the MLC Super Fund. Actuate is also part of the Insignia Financial Group.

Any advice or information provided to you by a Financial Coach during a super consultation will be of a general nature only and will not take into account your personal objectives, financial situation and needs. Because of that, before acting on any advice provided to you, you should consider its appropriateness to you, having regard to your personal objectives, financial situation and needs. Neither NULIS, nor any other entity within Insignia Financial Group, including any other entity within the Insignia Financial Group that is a trustee for a regulated superannuation fund, is liable for or responsible for any work, action or advice provided by Actuate. For important information about Actuate’s services which you should know before making a booking, please refer to Actuate’s Website Disclosure Information