How can I maximise my super?

Working out how much you will need to fund your retirement may not be easy but generally, you should allow for at least 60% of your pre-retirement income each year. If you want to improve your standard of living in retirement, you'll possibly need more.

Remember that when you've retired you may save money on work-related costs, but basic living expenses will be the same, and you may even choose to spend more on your leisure activities and interests. Longer term, be aware of rising health and medical costs, as well as the impact of inflation on your savings. Thus maximising your superannuation can be an important factor in your investment strategy.

Additional Contributions

Making additional contributions to your super fund, is an easy way to grow your super. There are two principal ways to do this:

Salary Sacrificing
Salary sacrificing is where your employer, on your behalf, makes additional pre-tax contributions into your superannuation fund, which reduces your taxable income. This method is generally more tax effective for those individuals with a higher marginal income tax rate, as tax on these additional super contributions is paid at 15 per cent.

Personal Contributions
An alternative to Salary Sacrificing is to make your own contributions. No tax is deducted from these contributions as they have been made from your after-tax salary. Upon retirement there is no tax payable on these contributions.

Government Co-contributions
If you are employed or self-employed, under age 71 and earning less than $58,980 per annum, you may be eligible for a Government co-contribution of up to $1,500 per annum. You need to meet a number of criteria to qualify, including making a personal contribution into superannuation.

Spouse Contributions
If your spouse is earning less than prescribed limits or not working, you are able to contribute to their superannuation and take advantage of certain tax benefits.

Consolidate your super
If you have several superannuation accounts, this may mean a duplication of fees and charges and paperwork. An easy way to manage your super is to consolidate all your superannuation into one account.