Retirement
How to rebuild your super balance after COVID-19
Members who have needed access to their superannuation are being advised to take advantage of government schemes to rebuild their super balance.
How to rebuild your super balance after COVID-19
Members who have needed access to their superannuation are being advised to take advantage of government schemes to rebuild their super balance.

In a conversation with nestegg, NGS customer relationship manager Karel Tomita explained the importance of compound returns for members, as well as those looking to take advantage of government regulations.
“If they have accessed their superannuation under COVID, there are a few things they could review.
“You’ve got the government co-contribution, which you can do, but if you’re accessing your super under COVID, I would be very conscious of cash flow,” Ms Tomita said.
She said members who have secure employment and have lower incomes can also benefit through a $1,000 contribution after tax.

“Depending on where you sit on the income threshold after, you might be able to make a $1,000 contribution. The government will match that up to $500,” Ms Tomita said.
The superannuation expert also explained that due to the power of compound interest, members who have withdrawn their superannuation early can review their strategy to ensure performance matches their long-term goals.
“Review how your super is actually invested. A lot of people join a superannuation fund and just stay with the default option,” she said.
“Thinking of first in the context of what is your time horizon, are you going to access more of your super in the new financial year?”
“If that is the case, let’s think in that context and what is an appropriate strategy for yourself.”
Ms Tomita noted that members who are not looking to access their superannuation again in the next financial year should understand different asset classes to know what would work best for them.
“You have growth assets – things like shares, infrastructure, which are more volatile but get most of the returns – and the defensive component, cash, bonds, term deposits, which provide that stability at the expense of a higher return.
“Particularly for younger members who might have accessed their super, in a long-term context you might want to consider going into a growth-orientated investment option.”
However, she cautioned members who use this option that the additional volatility will mean less smooth returns.
“You need to expect markets will go up and down. So the more you have in growth style assets, the range between worst-performing year and best-performing year over the long term will be wider.
“But if you can expect that is part of the journey, it could be a method for you to achieve higher returns over the long term,” Ms Tomita said.
Finally, she highlighted to younger members – who can take advantage of government benefits or co-contributions – that they can achieve superior performance due to timing.
“If you’re in a position to put more into super, the earlier you start, the better, because you have more time in the market to generate higher returns,” she concluded.
Did you enjoy this article? You may also be interested in:
- Superannuation is down but not out
- It's not for the government to tell people how to spend their money: Hume
- Why an income stream could lessen your superannuation anxiety
About the author

About the author


Superannuation
Australia's super performance test transforms investing: What's the next move?
APRA’s latest performance test has done more than name and shame lagging super options; it has rewired investment strategy, compressed fees and accelerated consolidation across the $3Read more

Superannuation
Australia's super test dilemma reform could boost long-term gains while keeping accountability sharp
APRA’s latest performance test results have reignited a structural debate: can Australia hold funds to account while still backing the nation’s long-horizon investment needs? With the government ...Read more

Superannuation
Super funds rethink strategy as APRA's performance test hits a fork in the road
The latest performance test results have reignited debate over Australia’s superannuation benchmarking regime and prompted a formal government review. Behind the headlines, boards are quietly rewiring ...Read more

Superannuation
Aware Super enhances digital tools for financial advisers, boosting efficiency and client engagement
Aware Super has unveiled a suite of new digital features designed to streamline the workflow for financial advisers and their clients. This significant upgrade includes direct data feeds to Xplan and ...Read more

Superannuation
Super funds flip the script as APRA's performance test sparks strategic overhaul
Australia’s performance test has lifted the floor on retirement outcomes—and divided the industry in the process. After early shockwaves, failure rates have fallen and fees have trended down, but ...Read more

Superannuation
Rewiring Australia’s super performance test: from compliance brake to capital engine
Can an accountability tool double as a nation-building lever? Canberra’s review of the superannuation performance test aims to preserve member protection while freeing funds to back long-dated assets ...Read more

Superannuation
Superannuation guarantee rate rises to 12 per cent as parental leave changes take effect
The superannuation guarantee rate has increased from 11.5 per cent to 12 per cent from Tuesday, with super contributions also being added to Commonwealth Parental Leave Pay for the first time. Read more

Superannuation
Rest's Sustainable Growth option achieves highest sustainability classification
Rest superannuation fund has achieved the highest sustainability classification for its Sustainable Growth investment option from the Responsible Investment Association Australasia. Read more

Superannuation
Australia's super performance test transforms investing: What's the next move?
APRA’s latest performance test has done more than name and shame lagging super options; it has rewired investment strategy, compressed fees and accelerated consolidation across the $3Read more

Superannuation
Australia's super test dilemma reform could boost long-term gains while keeping accountability sharp
APRA’s latest performance test results have reignited a structural debate: can Australia hold funds to account while still backing the nation’s long-horizon investment needs? With the government ...Read more

Superannuation
Super funds rethink strategy as APRA's performance test hits a fork in the road
The latest performance test results have reignited debate over Australia’s superannuation benchmarking regime and prompted a formal government review. Behind the headlines, boards are quietly rewiring ...Read more

Superannuation
Aware Super enhances digital tools for financial advisers, boosting efficiency and client engagement
Aware Super has unveiled a suite of new digital features designed to streamline the workflow for financial advisers and their clients. This significant upgrade includes direct data feeds to Xplan and ...Read more

Superannuation
Super funds flip the script as APRA's performance test sparks strategic overhaul
Australia’s performance test has lifted the floor on retirement outcomes—and divided the industry in the process. After early shockwaves, failure rates have fallen and fees have trended down, but ...Read more

Superannuation
Rewiring Australia’s super performance test: from compliance brake to capital engine
Can an accountability tool double as a nation-building lever? Canberra’s review of the superannuation performance test aims to preserve member protection while freeing funds to back long-dated assets ...Read more

Superannuation
Superannuation guarantee rate rises to 12 per cent as parental leave changes take effect
The superannuation guarantee rate has increased from 11.5 per cent to 12 per cent from Tuesday, with super contributions also being added to Commonwealth Parental Leave Pay for the first time. Read more

Superannuation
Rest's Sustainable Growth option achieves highest sustainability classification
Rest superannuation fund has achieved the highest sustainability classification for its Sustainable Growth investment option from the Responsible Investment Association Australasia. Read more