Super versus mortgage

THE calculations below show that in many instances you will be better off putting any extra cash you have into superannuation, rather than paying off your budget.

THE calculations below show that in many instances you will be better off putting any extra cash you have into superannuation, rather than paying off your budget.

Of course, as with all financial strategies, it depends on your individual situation. The fact you can't access the money once you have deposited it in your superannuation is probably going to be a big turn-off for many.

"Mathematically, particularly for high earners, putting the money into super is practical," says the managing director of financial advisory at Dixon Advisory, Nerida Cole (pictured). She also suggests that once you have built up a decent amount of home equity, superannuation should be a priority.

"Until there is a reasonable level of equity in the property, the prudent thing is to pay down their mortgage," she says.

Check out the "Super versus Mortgage" calculator at moneysmart.gov.au.

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