A little help from the boss can add up to a lot

Rajiv is offered the chance to join a savings scheme through work. The scheme's fees are paid by his employer. But the employer doesn’t make any other contribution.

Rajiv decides that it probably isn’t worth joining because he doesn’t expect to be with the company for very long. He joins a super scheme independently instead. As it turns out, he stays working for the company for 3 years. In that time his private savings have reached $2100.

If he’d joined the scheme his employer had been offering, his savings would have been worth $2800, simply because none of his contributions would have been going towards paying fees.