We get it, super usually isn’t on the top of the to-do list. If you’re an older millennial, or Gen X or Gen Y (roughly in your mid-30s to 50s) then you’ve probably got a million and one things competing for your attention and dollar right now.
Experience shows these are not only the peak years for big life events – like buying homes, partnering up, having children, advancing careers, and well ‘settling down’ in general – but they’re also our peak superannuation years.
For a lot of us, superannuation is out of sight, out of mind. Simply growing in the background while we live our lives. But for you to be able to do your thing all through life, you might want your super doing the most it can too.
That’s why we’ve got plenty of super tips to help make your road to retirement as smooth as possible – future you will really thank you.
First things first… let’s check where your superannuation is right now.
Assuming your superannuation fund allows you to review your current balance online, log on to your super fund account and check out your balance. Knowing this is the starting point for potentially supercharging your retirement.
Most super funds have online calculators that estimate how much money you may have when it finally comes time to retire. Each calculator uses built-in assumptions about you and your investments, contributions, investment returns, inflation and tax. So take a closer look and make sure the calculator settings are a good match for your income and situation.
While you’re at it, have a play around with possible future circumstances. Maybe pump up the deposit rate through extra contributions; shorten your work life to see if early retirement is an option; or change your investment choice to see if taking a different level of risk is worth the potential projected investment return.
If your super fund doesn’t have a calculator, check out Moneysmart’s Superannuation Calculator.
Now that you know where you’re at and where you could possibly be, let’s make sure your future is protected.
Insurance is about providing a way to support your family and possibly financially maintaining the lifestyle you have grown accustomed to, if something were to happen to you. There are different types of insurance available within superannuation funds, covering death, total permanent disablement and income protection and more. Just what type of insurance and how much insurance cover you may need usually depends on what event you want protection for. It could be to replace lost income if you were to become ill and couldn’t work. Or if the unthinkable were to happen, it could be to help your family pay off those big-ticket items we mentioned earlier, like your home or car loans. Your insurance cover could act as protection for the lifestyle you and your loved ones have today and in the future.
So what can you change today that could make a big difference?
Ever heard of salary sacrificing? It’s one great option to boost your super balance. Each year you could take advantage of the concessional (pre-tax) contributions – it’s capped at $27,500 per annum for this financial year. If you’re able and want to take advantage of the cap, you’ll need to get your concessional contributions in before 30 June of the relevant year. But make sure you do the math first and can afford to make any additional contributions. Learn more about super salary sacrificing with the ATO here.
What about after-tax contributions? If you earned up to $56,112 per annum for Financial Year 2021-22 you may also be entitled to a government co-contribution of up to $500. The amount of the government super co-contribution will depend on a person’s income (inclusive of employer super) and the amount of additional super contributions the person makes. Just make sure you’re checking in with any other eligibility requirements that apply to government super co-contributions here.
Even better news? If you make a contribution to your spouse’s super fund, you may also be able to get a tax-offset for this amount.
Find out if you’re eligible here or learn more with the ATO’s co-contribution calculator here.
The information is current as at publication. Any advice on this website does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. ING Living Super (which is part of the ING Superannuation Fund ABN 13 355 603 448) is issued by Diversa Trustees Limited ABN 49 006 421 638, AFSL 235153 RSE L0000635.
You should consider the relevant Product Disclosure Statement and Financial Services Guide at ing.com.au when deciding whether to acquire, or to continue to hold, a product. Before interacting with us via our social media platforms, please take a minute to familiarise yourself with our Social Media User Terms https://www.ing.com.au/pdf/Social_Media_User_Terms.pdf
The information is current as at publication. Any advice on this website does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. Deposit products, savings products, credit card and home loan products are issued by ING, a business name of ING Bank (Australia) Limited ABN 24 000 893 292, AFSL and Australian Credit Licence 229823. ING Living Super (which is part of the ING Superannuation Fund ABN 13 355 603 448) is issued by Diversa Trustees Limited ABN 49 006 421 638, AFSL 235153 RSE L0000635. The insurance cover offered by ING Living Super is provided by Metlife Insurance Limited ABN 75 004 274 882, AFSL 238096. ING Insurance is issued by Auto & General Insurance Company Limited (AGIC) ABN 42 111 586 353 AFSL Licence No 285571 as insurer. It is distributed by Auto & General Services Pty Ltd (AGS) ABN 61 003 617 909 AFSL 241411 and by ING as an Authorised Representative AR 1247634 of AGS. All applications for credit are subject to ING's credit approval criteria, and fees and charges apply. You should consider the relevant Product Disclosure Statement, Terms and Conditions, Fees and Limits Schedule, Financial Services Guide, Key Facts Sheet and Credit Guide available at ing.com.au when deciding whether to acquire, or to continue to hold, a product. Before interacting with us via our social media platforms, please take a minute to familiarise yourself with our Social Media User Terms https://www.ing.com.au/pdf/Social_Media_User_Terms.pdf.