May 22, 2018  | Tags: Superannuation

Our Insights

Many Australians today have zero to little knowledge about their superannuation. Super is still a vague concept for many people. They feel there’s not much they can do about it, so why worry?

But the fact is that your super is not something you can afford to ignore or leave to chance. It represents the budget you’ll have to live on for the rest of your life once you have to stop working. 

If you want that budget to have lots of breathing room to let you keep living a comfortable lifestyle, then bulk it up while you still have the ability to do so. 

Here are some of the best ways you can boost your super. Remember, it’s neither too early nor too late to get started. Just dive right in while you can!

Come in to some cash? Put it in your super

Money in hand looks far more valuable than numbers on paper that represent your super fund. But you should still try to exercise a little self-control and avoid impulsively spending a sudden cash windfall.

Whether you’ve won a prize, sold a valuable asset or two or inherited funds from a relative, seriously think about putting those funds into your super account. 

Selling assets and putting the proceeds in your super fund may also help you out at tax time.

Sacrifice your salary (even just a little ...)

You don’t have to sacrifice your entire shopping bill now for your retirement fund. But sacrificing even small portions of your salary each week will help your super fund grow.

Ask your employer about contributing an extra bit of your salary each week that’s equivalent to a couple days’ worth of eating out. Pack your lunch those days. Giving up on a few luxuries now will pay off later.

Keep in mind, too, that whatever you sacrifice into your super is likely to bring you tax benefits too. Your accountant and financial adviser can talk you through this.

Consolidate your super accounts

You may have unaccounted-for super drifting around in idle accounts if you’ve changed employers several times over the years. If you don’t keep track of your accounts (which have attached fees), they could dwindle down to almost nothing. 

Check in with the ATO to track down any lost super and gather it all into a single easy-to-manage fund.

Track employer contributions 

Your employer is legally obligated to deduct the super from your income and deposit it into your fund at least every quarter. If you’re not being paid on-time, you may be able to lodge a complaint and your employer might have to pay out some interest. This is why it helps to hold onto and examine your payslips.

Find out if you qualify for government contributions

Don’t think you’re earning enough to bother saving up for retirement? 

Think again. Saving for retirement is so important that the government has even set out guidelines to determine which individuals need a little financial help in contributing to their super.

If you meet those guidelines, you may qualify for some co-contributions from the government. Talk to your financial adviser about this.

Seek spousal support 

Are you or your spouse earning a low income? Are either of you planning to take a parental leave? One of you can make contributions to the low income earner’s super fund for a tax break.

For top advice about your super strategy, contact Calder Wealth Management.

Call us on (08) 8373 3333 to schedule your free initial appointment.

Written by Ben Calder, Private Client Adviser at Calder Wealth Management.