Boosting your superannuation fund savings in Australia can help ensure a hefty retirement income.
Read on to find out how you can do this in four simple ways
It is never too early to start planning for your retirement. The good news is, there are several options available for you utilizing superannuation savings. Aside from working towards a more profitable investment portfolio, you can also try boosting your super savings. Read on to find out how you can do this in four simple ways:
1. Avail salary sacrifice
Did you know that you have the option to increase your super savings through salary sacrifices? Salary sacrifice doesn’t just help boost your super balance, it can also minimise the tax imposed on your contributions by allocating a larger sum of pre-tax salary and putting these directly into your superannuation fund.
2. Consider concessional contributions
At a certain age, you may become eligible for a different set of superannuation benefits. A concessional limit is a perfect case in point. If you are younger than 50, the concessional limit is $30,000. Meanwhile, employees that are above 50 have a concessional limit of $35,000.
3. Determine your spouse’s contributions
Here’s another great opportunity to minimise the taxes imposed on your super: make contributions to your spouse's super savings. Note though that this strategy is not for everyone. Ideally, making contributions to your spouse’s super savings is recommended if you are a low income wage earner.
4. Consolidate your super savings
If you have had more than one employer, you have a higher risk of having multiple super accounts. For practical and convenience purposes, it is very important to ensure that your super savings are in order. You can help keep your super savings organised by ensuring that your contributions are consolidated in a single account.
As you go along and reach the minimum savings balance of $150,000 in your super account, you can then choose to turn your savings into a self-managed super fund (SMSF).
Boosting your super can make a huge difference in your retirement plans. So why pass up the chance to secure your retirement nest egg?
If you need more information about superannuation strategies, click here to get in touch with our advisers at HTA.