How to Upgrade Your Super Before Heading to Retirement

Preparing for retirement is one of the most important things anyone will do in their life.

Your retirement is a time where you should be able to relax and enjoy your free time. But without sufficient and productive planning, your retirement may be filled with stress and financial struggles instead. Nobody deserves to dread their first day of retirement! 

What’s important to remember is that your superannuation fund is there for you to rely on. However, for many retirees, the balance in their super account will not be enough to fully fund their retirement lifestyle – especially if you want to travel and enjoy the finer things in life during your golden years. 

So, giving your superannuation a boost now may be a wise plan for your financial future. 

It’s often overlooked by many Australians, which can be a dangerous habit the closer they are to their retirement years. The Association of Superannuation Funds of Australia (ASFA) revealed in March 2021 figures that individuals and couples by age 65 would need an estimate of $44, 412 and $62, 828 dollars respectively for a comfortable lifestyle. Even the lower margin of lifestyle expenses of $28, 254 for single individuals is still a steep goal if you want to live above the conditions of living off of Age Pension.

How to Boost Your Superannuation

It’s important to start saving for your retirement as early as you can. Luckily enough, the compulsory Superannuation Guarantee is helping you do just that. But there are also other ways you can top up your super to be sure you will have enough to last your entire retirement.

Building your super savings is a great way to achieve your retirement goals without being unsure of your financial future. Thankfully, you can make proactive choices to reach this goal.

Here are four strategies you can use to grow your super balance with ease:

Make the Most of Contribution Allowances

There’s a wide range of voluntary super contributions you can invest in to increase your super balance and your funds for retirement.

What’s great to know is that some of the contributions you can make are tax-deductible. You can make these contributions by using after-tax dollars and claiming a tax deduction when you complete your tax return at the EOFY. 

Your other contribution options range from co-contributions from the government, non-concessional contributions, salary sacrifice contributions, and more. 

Seek guidance from a financial advisor to assess how super contributions may be able to minimise your tax and maximise your super.

Consolidate Your Super

Consolidating your super is an excellent way to optimise your savings. Since many Australians change jobs and move funds over the years, it’s common for some people to have more than one super fund. 

What’s not great for your finances is that every super fund has fees attached to it so if you have your money attached to more than one fund, you are paying more fees for no reason. If you’re currently paying multiple fees for various super accounts, it’s wise to consolidate them through the Australian Taxation Office (ATO).

Keep in mind that some funds may have exit or withdrawal fees together with tax implications. 

Assess Your Super Investment Options

Did you know that your super fund allows you to choose how you want to invest your super? 

From a range of ethical investment options to high-growth opportunities, you really can personalise your superannuation how you want. While it can be a rewarding investment to switch your super account to a growth option, this may not be wise if you are approaching retirement and will soon need to access your balance.

Are You Nearing Retirement?

Preparing for retirement is all about knowing which strategies will work best for your financial future. However, knowing what you should do is entirely different from executing it properly and with the greatest financial gains. 

If you are approaching retirement, you may like to seek help from a friendly and professional retirement planner at Cambio Group.

If you’re looking for a financial advisor in Gold Coast, our team can help. It’s our mission at Cambio Group to deliver a positive change to our client’s lives. If you want to secure a healthy financial future, book a complimentary financial planning consultation with us today!

Disclaimer: The information (including taxation) in this website does not consider your personal circumstances and is of a general nature only – unless otherwise stated. You should not act on the information provided without first obtaining professional advice specific to your circumstances.