As we grow older, our general perception of life and “wealth” shifts.
It becomes less about “How can I afford that new car or renovate the house?” and more about, “How can I make sure I’ll have enough savings to live a comfortable lifestyle when I stop working?”
So, how can we get there?
For many Australians, their superannuation fund is often key to living that dream retirement.
If you’ve been thinking about how to boost your superannuation fund, here are five actionable steps you can take right now to help ensure your nest egg keeps growing.
- Locate and Consolidate Your Super Accounts
Remember the paperwork you fill out when starting a new job? One of those forms is for your superannuation, and if you’ve worked with multiple employers over the years, chances are you may have created multiple super accounts along the way. It can be difficult to keep track of them all, and having several accounts means paying multiple fees, which can eat into your retirement savings.
Find lost superannuation or claim superannuation and consolidate all your accounts into one. This solution not only gives your super balance an immediate boost, but also makes it easier to manage, and provides better visibility and control over your financial future.
- Review and Adjust Your Investment Options
Many people aren’t aware that they can choose how their superannuation fund is invested. You don’t need to understand all the ins and outs of investment strategies (unless you want to!), but keeping an eagle eyes view of your super investments is crucial if you want a better return.
Your investment strategy should align with your stage of life—such as how close you are to retirement. If you’re still several years away, you may want to focus on a growth-oriented strategy that takes advantage of higher-risk investments, such as shares or property, for better long-term returns. For example, investing in property through a Self-Managed Super Fund (SMSF) can offer significant value over time.
However, if you’re close to retirement, a more conservative investment approach, focused on preserving your savings, might be more suitable. This shift helps minimise the risk of losses as you near the point of accessing your super.
- Make Regular Contributions to Superannuation
This one is a ‘no-brainer’. The more you contribute, the more you get. Even the smallest amount can make a big difference over time due to the power of compounding interest. The Australian government offers incentives, such as co-contributions for low-income earners and tax benefits for concessional contributions.
It’s important to take advantage of these opportunities now, as time flies, and before long, it will be time to retire and you want to do so without the financial stress.
- Consider Salary Sacrifice Options
One of the most popular strategies in Australia is ‘salary sacrifice’. It’s a powerful tool for growing your super efficiently.
How does it work? You basically redirect a portion of your pre-tax income straight into your superannuation fund.
It is particularly beneficial for employees because it reduces taxable income, meaning you pay less tax while simultaneously increasing your retirement savings.
Once you’ve decided how much to sacrifice, ask your employer to arrange it for you.
- Explore Spouse Contributions
This option works well if you have a spouse who has taken a break from the workforce or is earning less than you. Contributing to their super can be a win-win situation for both of you. It’s a strategy that allows you to receive tax offset benefits – find more details on the official ATO website here.
By taking these steps, you can ensure that your superannuation fund is working as hard as you are. Whether it’s through consolidating accounts, reviewing investments, or making regular contributions, every little effort helps. If you’re unsure or want to explore more tailored options, consider booking a free appointment with us to map out your retirement journey.
