Retirement
Effective strategies to amplify your super before you retire
Planning for retirement is crucial, and a key element in this planning is your superannuation. A healthy super fund can mean the difference between a comfortable retirement and financial struggles during your golden years.
Effective strategies to amplify your super before you retire
Planning for retirement is crucial, and a key element in this planning is your superannuation. A healthy super fund can mean the difference between a comfortable retirement and financial struggles during your golden years.
While the Australian superannuation system offers a reliable mechanism for retirement savings, many people wonder how to maximise these funds before they retire. Below are some strategic ways to boost your superannuation.
Make voluntary contributions
One of the simplest ways to boost your super balance is by making voluntary contributions. The Australian government allows concessional and non-concessional contributions:
Concessional contributions are deducted from your pre-tax income and are eligible for tax deductions. They are limited by an annual cap, which is currently set at $27,500.
Non-concessional contributions, on the other hand, are made using after-tax income. The yearly contribution limit is $110,000, but in specific circumstances, you have the option to contribute an amount equivalent to two years' worth of contributions.
Utilise government co-contributions
If you are a low- or middle-income earner, you may be eligible for the government co-contribution scheme.
The government could contribute up to $500 annually to your super if you make non-concessional contributions and meet specific income conditions.
Take advantage of contribution splitting
Contribution splitting allows you to split your concessional contributions with your spouse.
This strategy could be beneficial for tax purposes and for equalising super balances between couples, especially if one partner takes time off work for caring responsibilities.
Salary sacrifice
This involves diverting part of your pre-tax salary directly into your super account. Not only does this increase your super balance, but it also reduces your taxable income.
However, the salary sacrificed amount and your employer’s contributions should not exceed the annual concessional contributions cap.
Investment choices
Most super funds offer a range of investment options, each with different risk profiles. While higher-risk options might offer greater returns, they also come with increased volatility.
Tailor your investments based on your financial goals and risk tolerance.
Spousal contributions
If your spouse is a low-income earner or not working, contributing to their super could benefit both of you. Not only does it help grow their super balance, but you might also be eligible for a tax offset.
Monitor and review
It’s essential to regularly monitor your super fund’s performance and review your investment choices. Many people set and forget their super, missing opportunities for maximising returns.
Roll multiple accounts into one
Having multiple super accounts means paying multiple sets of fees. Consider consolidating your super into one account to reduce fees and make it easier to manage your investments.
Seek professional advice
Given the complexities and constant changes in the superannuation landscape, consider seeking advice from a certified financial planner. They can offer tailored strategies to help you maximise your super.
Conclusion
While the Australian superannuation system offers a strong foundation for retirement savings, merely relying on employer contributions might not provide the comfortable retirement you seek.
Utilising a combination of these strategies can significantly amplify your super before retirement.
This article is intended for informational purposes and should not be considered as financial advice.
RELATED ARTICLES
Retirement Planning
New Framework Aims to Bridge Australia’s Financial Advice Gap
A ground-breaking framework introduced by the Actuaries Institute promises to revolutionise how Australians access financial support, potentially transforming the financial wellbeing of millionsRead more
Retirement Planning
The downsizer dividend: how Australia’s ageing shift will reshape property, finance and AI strategy
Downsizing is moving from a personal milestone to a system-level lever for Australia’s housing market. As policymakers court reforms and agents eye fresh listings, the real profit pools will accrue to ...Read more
Retirement Planning
Half of Australians financially insecure about retirement as AMP launches new initiative
In a significant move aimed at addressing the retirement concerns of Australians, AMP has unveiled the Retirement Confidence Pulse, a national barometer designed to gauge the financial confidence of ...Read more
Retirement Planning
North introduces Grow to expand Australia's financial advice footprint
In a bid to bridge the gap between the demand for financial advice and its accessibility, North, a prominent platform for superannuation and retirement in Australia, has launched an innovative ...Read more
Retirement Planning
Majority of Australians anxious about retirement as super knowledge gaps persist, report finds
A new study by Aware Super has revealed that a significant majority of Australians aged 45 and over are feeling anxious about retirement, with nearly nine in ten respondents concerned they will run ...Read more
Retirement Planning
AMP’s MyNorth Lifetime boosts financial security and retirement income
AMP has reported that its MyNorth Lifetime retirement income solution is delivering significant financial benefits to retirees, with an average uplift of 50% in total income. Read more
Retirement Planning
Retirement living sector calls for planning reforms amid declining construction confidence
The Retirement Living Council (RLC) is urging governments to streamline planning systems to boost housing supply, following a decline in confidence in age-friendly construction activity. Read more
Retirement Planning
New laws to boost women's retirement savings through paid parental leave
The Australian Parliament has passed new legislation that will see superannuation guarantee contributions paid on the Commonwealth Government's Paid Parental Leave (PPL) scheme. Read more
Retirement Planning
New Framework Aims to Bridge Australia’s Financial Advice Gap
A ground-breaking framework introduced by the Actuaries Institute promises to revolutionise how Australians access financial support, potentially transforming the financial wellbeing of millionsRead more
Retirement Planning
The downsizer dividend: how Australia’s ageing shift will reshape property, finance and AI strategy
Downsizing is moving from a personal milestone to a system-level lever for Australia’s housing market. As policymakers court reforms and agents eye fresh listings, the real profit pools will accrue to ...Read more
Retirement Planning
Half of Australians financially insecure about retirement as AMP launches new initiative
In a significant move aimed at addressing the retirement concerns of Australians, AMP has unveiled the Retirement Confidence Pulse, a national barometer designed to gauge the financial confidence of ...Read more
Retirement Planning
North introduces Grow to expand Australia's financial advice footprint
In a bid to bridge the gap between the demand for financial advice and its accessibility, North, a prominent platform for superannuation and retirement in Australia, has launched an innovative ...Read more
Retirement Planning
Majority of Australians anxious about retirement as super knowledge gaps persist, report finds
A new study by Aware Super has revealed that a significant majority of Australians aged 45 and over are feeling anxious about retirement, with nearly nine in ten respondents concerned they will run ...Read more
Retirement Planning
AMP’s MyNorth Lifetime boosts financial security and retirement income
AMP has reported that its MyNorth Lifetime retirement income solution is delivering significant financial benefits to retirees, with an average uplift of 50% in total income. Read more
Retirement Planning
Retirement living sector calls for planning reforms amid declining construction confidence
The Retirement Living Council (RLC) is urging governments to streamline planning systems to boost housing supply, following a decline in confidence in age-friendly construction activity. Read more
Retirement Planning
New laws to boost women's retirement savings through paid parental leave
The Australian Parliament has passed new legislation that will see superannuation guarantee contributions paid on the Commonwealth Government's Paid Parental Leave (PPL) scheme. Read more
