Retirement is the fruit of all your working years, and your super is one of the biggest assets you’ll accumulate over your lifetime. With the average couple needing $840,000 to be living comfortably,1 it’s worth thinking about making some small changes now that could make a big difference to your retirement.
Whether you’re saving some extra cash at the end of the month or looking for a fund that invests in the things you believe in, there are lots of ways you can bolster your balance – without making compromises to your lifestyle.
1. Top up your super balance yourself
Your employer is generally required to pay 9.5% of your salary into your nominated super account but you can also make extra contributions to boost your balance.
You can boost your balance in one of two ways by:
arranging before-tax (concessional) superannuation contributions; this includes salary sacrificed contributions, personal tax-deductible contributions (if you’re self-employed) and employer contributions, or
making an after-tax (non-concessional) super contribution
2. Check if you’re eligible for a super co-contribution
Super co-contributions can help eligible members boost their retirement savings. If your total income is lower than $52,697 for the 2018/19 year,2 you make personal after-tax (non-concessional) contributions to your super fund and meet other eligibility criteria,3 you may be entitled to a super co-contribution amount of up to $500.
3. Calculate how much you pay in fees
Every super fund deducts fees that can impact the size of your final retirement pot. At Crescent Wealth Super we don’t charge any establishment fees, withdrawal fees, upfront contribution fees, termination fees or adviser fees that some other funds do.
Make sure you’re aware of what you’re being charged, particularly if you’re paying fees to more than one super fund.
4. Find lost super and consolidate
If you’ve changed your address or job in the last few years, then there’s a chance your super is split across several accounts or held by the Australian Tax Office (ATO) waiting to be claimed. To avoid your super balance being eaten up by multiple fees, visit ‘Find your lost super’ below to consolidate your funds.
5. Review your investment options
Most super funds let you choose from a range of investment options, often depending on how much investment risk you are willing to take. If you haven’t actively chosen where your super money is invested it will automatically go into a default investment option. Choosing the right investment option for you can have a major impact on how your super performs so take the time to understand the options available to you before switching.
The information in this document has been prepared without taking into account your objectives, financial situation or needs. You should consider the suitability of the information in light of your own objectives, financial situation or needs and seek professional advice before making any decisions related to your super.
- As above.
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