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Boost Your Super: Elevate Your Savings for a Brighter Future
Whether you're in the early stages of your career or nearing the end, it's never too soon or too late to enhance your superannuation savings. With straightforward strategies to maximize your balance while earning a steady income, you can pave the way for a truly fulfilling retirement.
While your employer contributes to your super through the Superannuation Guarantee (SG), you have the opportunity to go above and beyond. By making additional contributions, you can boost your super balance while enjoying potential tax savings. Best of all, your investments continue to grow, harnessing the power of compounding to generate returns on your already earned returns.
Here four simple ways to maximize your super balance and secure a comfortable retirement:
Increase your super with salary sacrifice: This strategy involves making additional contributions to your super from your pre-tax salary on top of your employer's SG payments. By choosing to make before-tax contributions through salary sacrifice, you can give your super a significant boost. This not only helps grow your super balance, but it also offers tax benefits:
- Enjoy a lower tax rate of 15% on your salary sacrificed into super.
- Reduce your taxable income, potentially leading to more savings during tax time.
After-Tax Contributions: You can also contribute to your super using after-tax money directly from your bank account to your super. These contributions are known as non-concessional contributions and can be made up to certain annual limits and age.This flexible option offers numerous benefits:
- No regular commitments; contribute as you please
- Ideal if your employer doesn't offer salary sacrifice
- Higher contribution caps compared to before-tax contributions
- Claim a tax deduction on after-tax contributions up to the concessional limit of $27,500 per year
Government Co-Contribution: If you earn a low to moderate income and make after-tax contributions to your super, you may qualify for a government co-contribution. The government matches 50 cents for every $1 you contribute to your super (up to $500 per year) if you earn $42,016 or less before tax, which helps boost your super balance.
Spouse Contributions: If you have a spouse who earns a low income or is not working, you can make contributions to their super on their behalf. This not only grows their super and also provides tax advantages for you.
Contribution Splitting: Contribution splitting allows you to transfer a portion of your pre-tax super contributions to your spouse's super account. This can be beneficial if one partner has a significantly higher super balance or if you want to equalize retirement savings between you and your spouse.
It's important to note that there are annual contribution caps and eligibility criteria associated with these strategies. It's advisable to consult with a financial advisor to understand the specific details and potential benefits of each strategy based on your individual circumstances.
DISCLAIMERS
This document has been prepared by Navel Private Wealth, an Authorized Representative of Lifespan Financial Planning Pty Ltd ABN 23 065 921 735, AFSL No.229892 based on providing for information purpose only. Accordingly, reliance should not be placed on this material as the basis for making an investment, financial or other decision. While all care has been taken in the preparation of this document (using sources believed to be reliable and accurate), to the maximum extent permitted by law, no person including Navel Private Wealth, its adviser or Lifespan Financial Planning Pty Ltd, accepts responsibility for any loss suffered by any person arising from reliance on this information. Before acting on this material, you should consider its appropriateness, having regard to your financial circumstances and needs, and talked to a specialist in that field.
This document has been prepared by Navel Private Wealth, an Authorized Representative of Lifespan Financial Planning Pty Ltd ABN 23 065 921 735, AFSL No.229892 based on providing for information purpose only. Accordingly, reliance should not be placed on this material as the basis for making an investment, financial or other decision. While all care has been taken in the preparation of this document (using sources believed to be reliable and accurate), to the maximum extent permitted by law, no person including Navel Private Wealth, its adviser or Lifespan Financial Planning Pty Ltd, accepts responsibility for any loss suffered by any person arising from reliance on this information. Before acting on this material, you should consider its appropriateness, having regard to your financial circumstances and needs, and talked to a specialist in that field.
