Ways to boost your super before retirement
Here are some practical ideas that you can implement right now to give your retirement savings a boost and help prepare for the next phase of your life.
5 minute read
1. Avoid paying multiple fees
Take Australian Retirement Trust with you
Sometimes, when changing jobs, members forget to let their new employer know about their existing Australian Retirement Trust account and another account is opened elsewhere. These little interruptions throughout your working life, can impact the power of compound interest on your investment and reduce retirement savings.
It’s never too late to let your employer know to restart making contributions into your account at Australian Retirement Trust. A fund whose investment returns have outperformed the industry average over 1, 3, 5, 7 and 10 years1.
Between jobs? Download the Australian Retirement Trust app and have your account details handy to pass onto a new employer when you begin.
Simplify your life and consolidate your super
If you’ve had more than one job, there’s a good chance you could have multiple super accounts. For most Australians, it makes financial sense to have all your super in one spot and our simple Consolidation tool can help search and bring it all together.
Three reasons to consolidate your super:
- Simplify your fees.
- Keep things simple and grow your super by having your contributions go into one fund. This will make keeping track of contribution caps easier too.
- Choose an investment strategy that suits your retirement goals and risk profile.
2. Contribute what you can
At different stages in your life you may find yourself with a little extra disposable income - perhaps from a bonus or tax return. Making contributions to your super can help give your balance a little boost, but also offer some tax advantages.
Be mindful that there are some caps and rules which limit the amount you can contribute.
Here's a few options that may appeal to you as you get closer to retirement.
If you’re still working, salary sacrifice contributions are before-tax payments you set up through an agreement with your employer. Money is paid into your super before you pay tax, which may reduce your taxable income.
If you haven’t reached your concessional cap in the last five years, you may be able to take advantage of the carry forward rules to really ignite your retirement savings.
You may even choose to increase your salary sacrifice contributions while drawing regular payments from an Income account. Make an appointment with one of our friendly financial advisers to see if this option suits your current situation.
Tax deductible contributions
If you aren’t able to salary sacrifice or would just rather do it yourself, you can still make tax deductible super contributions by making a voluntary contribution from your after-tax pay, and then claiming a tax deduction.
Voluntary after-tax contributions
You can make after-tax contributions on a regular or one-off basis, whatever suits. Generally, these contributions are made via BPAY, direct debit, or payroll deductions through your employer.
If you're under age 75 at the start of the financial year, you may be able to bring-forward two future years of after-tax contributions. This will allow you to contribute up to three times the standard cap at once. Eligibility rules apply.
If you’re over 60, the government allows you to contribute up to $300,000 (so, $600,000 combined for a couple) from the proceeds of selling your family home, if owned for 10 years or more, into your super. This could offer a practical tax effective way to transfer any money you have left over from Downsizing contributions, into a retirement income stream.
3. Search for lost super
Did you know that as at 30 June 2020, there was $13.8 billion2 in lost and unclaimed super?
Some of that may be yours! Use our Consolidation tool to search. Any money found at the ATO will be automatically transferred across to your Australian Retirement Trust account. Too easy!
4. Seek guidance to take that next step
Our financial advisers are here to help you feel better prepared for retirement and you can access expert financial advice, about your Australian Retirement Trust account, for no extra cost. This service is included as part of your membership.
Expert financial advice can make a big difference to your lifestyle now and after you stop work; and give you confidence to take charge of your financial future.
1 SuperRatings Fund Crediting Rate Survey - SR50 Balanced (60-76) Index, December 2021. The industry average is the median return after investment fees and taxes for the SR50 Balanced (60-76) Index which comprises the 50 largest investment options with a similar asset allocation to growth style assets of between 60-76%. Past performance is not a reliable indicator of future performance. 2 Australian Tax Office – Lost and unclaimed super by postcode “Super statistics” as at 30 June 2020.