Strategies to Boost Your Superannuation Balance

Building a healthy superannuation balance is key to securing your financial future. Whether you’re just starting your career or nearing retirement, implementing super strategies now can make a significant difference later. Here’s how to boost superannuation effectively and ensure your savings are on track.

Why a Superannuation Boost Matters

A superannuation boost isn’t just about saving for retirement—it’s about ensuring you can maintain your lifestyle when you stop working. By boosting your super balance early, you can take advantage of compounding interest, reduce financial stress later, and potentially enjoy tax benefits. Small, consistent actions now can lead to a significant difference over time.

If you’re unsure where to start, our financial planners in Perth, Melbourne, Sydney, Brisbane, Newcastle, Adelaide and Canberra can guide you through the process.

Super Strategies to Increase Your Balance

1. Make Voluntary Contributions

Adding extra money to your super can give your balance a boost. Even small, regular contributions can grow significantly over time due to compounding returns. Consider setting up direct deposits to make saving automatic and hassle-free.

2. Consolidate Your Super Accounts

Many Australians have multiple super accounts, often from changing jobs. Consolidating these accounts can save on fees and make it easier to track your balance.

3. Take Advantage of Employer Contributions

If your employer offers salary sacrificing, you can redirect a portion of your pre-tax income into your super. This strategy reduces your taxable income while boosting your super balance.

4. Check for Government Contributions

If you earn below a certain threshold, you may qualify for government co-contributions. These extra contributions can add up over time and give your balance an added lift.

How to Boost Superannuation at Different Stages

Are you wondering how to boost superannuation? Boosting your super looks different depending on your stage of life.

In Your 20s and 30s: Start early. Voluntary contributions of even small amounts can grow substantially thanks to compounding.
In Your 40s: Review your super fund’s performance. Ensuring your investment options align with your goals can help your balance grow faster.
In Your 50s: Maximise salary sacrificing and consider making catch-up contributions to close any gaps in your savings.
In Your 60s: Transition to more stable investment options and focus on creating an income stream for retirement.

Avoiding Common Super Mistakes

Ignoring Fees: High fees can erode your savings over time. Review your fund’s charges and compare them to industry standards.
Not Reviewing Your Investments: Your risk tolerance and goals may change over time. Regularly review your investment options to ensure they still align with your strategy.
Overlooking Extra Contributions: Many people miss opportunities for employer or government contributions. Stay informed about what’s available to you.
Waiting Too Long to Start: The earlier you focus on boosting your super, the more time your money has to grow.

Take Action Today

The following thee steps can get you on the right track to boost your superannuation:

Check your current super balance and compare it to recommended benchmarks.
Consolidate any lost or inactive accounts to reduce fees.
Start voluntary contributions, even if the amount is small.

Consult a superannuation financial advisor for tailored advice on maximising your superannuation.

FAQs

Making voluntary contributions, consolidating accounts, and taking advantage of employer and government contributions are effective ways to boost your superannuation.

Consolidating accounts reduces fees and makes it easier to manage your balance. It also ensures all your super funds work together for maximum growth.

The earlier, the better. Starting in your 20s or 30s gives your savings more time to grow, but it’s never too late to take steps to improve your balance.

A financial planner can assess your current situation, recommend strategies like salary sacrificing or catch-up contributions, and ensure your superannuation aligns with your retirement goals.