7 ways to boost your Super

There are around 3 million Australians expected to retire in the next 10 years. For many of them, the main concern is whether they will have enough money to fund their retirement.

If you are planning on retiring in the next 10 years, here are 7 ways to boost your super:

1. Consolidate your super into a low fee fund. This will reduce the fees you pay which will give you more super when you retire. The average super balance for those aged between 55 and 64 in 2018 was nearly $300,000. If you are in a fund that charges overall fees of 1.5% you will be paying around $4,500 in fees every year. If you can get a similar fund with similar investments that only charges 0.5%, you will be boosting your super by around $3,000 every year.
2. Make additional concessional contributions into your super. This can be done directly to your super fund or through salary sacrificing. If you are earning $100,000 per year and contribute an additional $10,000 into super, instead of paying $3,700 in tax, your super fund will only pay $1,500. This means your savings will increase by an additional $2,200 every year.
3. Start a transition to retirement (TTR) strategy if you have reached your preservation age. While you are working, you can make additional super contributions and take a pension from your super to supplement the reduced after-tax income. If you earn more than $100,000 and contribute an additional $10,000 into your super, you can boost your super by $3,607 each year without changing your take home income.
4. Low-income super tax offset. If you earn $37,000 or less, your super may get a boost from the Government. They will contribute up to $500 annually based on any concessional (pre-tax) contributions you or your employer made to your super during the financial year. You don’t need to apply for this, as the Government will do it when you lodge your tax return.
5. Additional Government co-contributions. If you earn less than $37,697 and make after-tax contributions to your super, the Government will make a co-contribution up to $500. It is calculated at 50 cents for every $1 you contribute. The amount of the co-contribution reduces as your earnings increase up to a maximum income of $52,697. You don’t need to apply for this, as the Government will do it when you lodge your tax return.
6. Downsize the family home. If you are aged 65 or older, have owned your home for more than 10 years and downsize, you may be able to put the proceeds from the sale into your super. The contribution can be up to $300,000 per person and is in addition to any other contributions you make under existing contribution caps.
7. If your spouse earns low or no income, you may be able to claim a tax offset of up to $540 if you make contributions to their complying super fund.

If you would like to discuss how to boost your super with an independent financial adviser, book a chat via the button below. Alternatively contact us on 0417 034 252 or at office@constructwealth.com.au.