Boosting your super
8 ways to boost your super balance
Most industry experts will tell you that the compulsory Superannuation Guarantee (currently 9.5% of your income) paid by your employer won’t be enough to cover the basic retirement dreams of the average Australian. Most of us need more.
There are some simple, and often tax-effective, ways to boost your super balance, so you’ll have more for retirement.
If you’re on a lower income:
1. Make an after-tax contribution to your super and reap the benefits of the Federal Government’s Co-contribution scheme
If you’re on an average or higher income:
2. Make a before-tax contribution to your super – known as salary sacrificing – and take advantage of the tax benefits
If you think you have more than one super account:
3. Check to see if you have any lost or unclaimed super you didn’t know about
4. Consolidate your super into one account and save on multiple management fees
If you earn a bonus or have a windfall
5. Invest some of that money in your retirement by making an extra contribution to your super fund
If you haven’t reviewed your super for a while
6. Compare your existing super fund with others in the market and ask yourself if your fund is meeting your needs. Fees and investment performance are important factors to consider. Being a member of an IndustrySuperFund puts you ahead of the others because of their low fees and strong performance history (of course remember that past performance is not a reliable indicator of future performance).
7. Seek advice from your super fund or financial planner about maximising your superannuation.
8. Look at your investment mix and decide whether it matches your needs and risk appetite.