Retirement
How to rebuild your super balance post-pandemic
Australians who accessed their superannuation early are being urged to kickstart rebuilding their balances as the economy recovers from its first recession in three decades.
How to rebuild your super balance post-pandemic
Australians who accessed their superannuation early are being urged to kickstart rebuilding their balances as the economy recovers from its first recession in three decades.
Research released by Colonial First State showed that a majority of Australians who withdrew their super through the early release scheme are yet to rebuild their balances.
Under the government’s temporary early access to super scheme, individuals and sole traders who had suffered financial hardship of at least 20 percent due to loss of work or hours were enabled access to up to $10,000 from their superannuation retirement savings in the 2019-20 financial year.
A second round of the scheme, from 1 July to 31 December, permitted people to apply to withdraw a further $10,000.
Colonial First State general manager Kelly Power said that while she supported the government granting access to superannuation, it is important that members replenish their funds.
“The early release scheme has been a vitally important initiative to help Australians deal with the pandemic and cover basic expenses, including those living overseas or unable to get back to Australia,” Ms Power said.
“For younger members in particular, now is the time to start making up some lost ground by using these contributions to rebuild their savings for the years ahead.”
Ms Power advised those who accessed the scheme that making small and regular contributions will have a long-term impact on retirement balances.
“If you withdrew $10,000 from your super, think about replenishing it outside of the super guarantee,” Ms Power said.
“Making additional contributions of just $20 a fortnight from your pre-tax income (salary sacrifice) can mean an additional $25,000 at retirement. Because it is pre-tax, this would only equate to a reduction of $13 from their after-tax income per fortnight.”
Ms Power also advised superannuation members to look into the tax concessions available to members who want to lift their superannuation balances.
“Spousal, after-tax and concessional contributions may deliver tax breaks or qualify you for government contributions and can help to grow yours and/or your partner’s nest egg,” she explained.
Finally, the general manager advised members looking to set an online reminder to check in with their superannuation balance.
“Similar to scheduling diary reminders for your work or social engagements, and for other bill payments such as credit card, rent or utilities, set yourself diary reminders to check in your super every month.
“Think of it as a ‘reality check’ of where you’re headed in your journey to a comfortable retirement,” Ms Power concluded.
About the author
About the author
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Age Pension increase prompts Australians to review their finances
The increase in the Age Pension, which takes effect today, should serve as a prompt for many older Australians to ensure they're maximizing their income as cost-of-living pressures persist, according ...Read more
Superannuation
Retirement reimagined as Australian optimism meets inflation worries in 2023 super fund insights
The latest reports on retirement confidence among Australians present a spectrum of sentiments, with fresh data revealing surprising optimism in some quarters while exposing underlying concerns in ...Read more
Superannuation
Aussie retirees face a shortfall as ideal retirement nest egg doubles what super will deliver
As Australians look towards retirement, the desired superannuation balance that many believe will ensure a comfortable retirement has significantly outpaced what they are on track to actually save. Read more
Superannuation
Super funds eye 6.5% return in 2023, despite a rocky start
As the year draws closer to its climax, Chant West unveils its projection for super funds in what can only be described as a year of economic ebbs and flows. Read more
Superannuation
A deep dive into Australia’s superannuation system
Australia has a robust retirement savings system known as superannuation designed to provide financial security to Australians in their post-work years. Read more
Superannuation
50,000 super fund members impacted by data breach
Around 50,000 member records were impacted by the breach that took place earlier this month. Read more
Superannuation
Two super funds tipped to reach $1tn by 2040
KPMG has released the findings from a new review. Read more
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Age Pension increase prompts Australians to review their finances
The increase in the Age Pension, which takes effect today, should serve as a prompt for many older Australians to ensure they're maximizing their income as cost-of-living pressures persist, according ...Read more
Superannuation
Retirement reimagined as Australian optimism meets inflation worries in 2023 super fund insights
The latest reports on retirement confidence among Australians present a spectrum of sentiments, with fresh data revealing surprising optimism in some quarters while exposing underlying concerns in ...Read more
Superannuation
Aussie retirees face a shortfall as ideal retirement nest egg doubles what super will deliver
As Australians look towards retirement, the desired superannuation balance that many believe will ensure a comfortable retirement has significantly outpaced what they are on track to actually save. Read more
Superannuation
Super funds eye 6.5% return in 2023, despite a rocky start
As the year draws closer to its climax, Chant West unveils its projection for super funds in what can only be described as a year of economic ebbs and flows. Read more
Superannuation
A deep dive into Australia’s superannuation system
Australia has a robust retirement savings system known as superannuation designed to provide financial security to Australians in their post-work years. Read more
Superannuation
50,000 super fund members impacted by data breach
Around 50,000 member records were impacted by the breach that took place earlier this month. Read more
Superannuation
Two super funds tipped to reach $1tn by 2040
KPMG has released the findings from a new review. Read more