Super Boost – 5 Tips To Help You Maximize Your Superannuation Earnings (And Retire Earlier)

Date:

It doesn’t matter how much you earn or how much is in your super account, you should take care of it now and boost it if you can. The more money you have in your super account when you retire, the more comfortable your retirement will be, and the less likely you are to depend on your country’s pension scheme as income. Here are five actionable steps to boost your super today and retire like royalty:

  1. Get involved

Find out where your superannuation is invested and what other options are available to you. That small percentage counts, so make sure it’s going into an investment that’s right for you. Consider a basket of investments, including stocks and shares, property, and other income-generating assets such as infrastructure investments, as well as bonds. You can even work with SMSF Accountants to self-manage your super and make sure you have a mixture of diversified investments.

  • Optimize your fund

Optimize your super fund’s performance, fees and insurance. This means choosing a fund with low fees to help increase the money you have in your account balance when you retire. Also, opt for a fund with good performance over 3 to 5 years. Keep in mind that super is a long-term investment and you need it to perform well over a long period of time.

When it comes to insurance, the most important thing is to make sure that you’re covered for whatever you need. Almost every super fund comes with death, disability and income protection insurance. But the actual product between the different super funds may be different. Make sure you’re covered for what you need and that you’re not paying exorbitant premium amounts, otherwise it’ll eat into your super fund.

  • Leverage tax-deductible contributions

These are contributions that you make from your taxed income. For instance, you may choose to transfer funds from your personal bank account into your super account. The good thing is these contributions are tax-deductible. But, you’re limited to only $100, 000 of tax-deductible income into your super each year. There’s also a 3-year carry forward rule if you haven’t maxed out this cap in the previous years. This rule is nil if your account balance exceeds $1.6 million.

  • Co-contributions

Also known as personal contributions, these contributions are particularly helpful for low-income earners who make less than $37, 697 per year. The government will contribute up to $500 if you make your own co-contribution of $1000. If your salary is between $37,697 and 452,697 per year, your entitlement will decrease as your income increases.

Also, if you earn less than $37,697 and make super contributions, the government may pay you back the tax you paid on those contributions. The maximum offset you can get is $445 and it reduces by 1.5 cents for each dollar that you earn over $37,000 dollars.

  • Downsizing contributions

These contributions apply to people aged 65 or older who lived in their house for more than 10 years and are now selling it to downsize to a smaller home. You can contribute up to $300,000 per person into the super fund and this is in addition to any other contributions you make. The caps don’t apply in this case. But, you need to make this contribution within 90 days of settlement.

If you’ve taken all the steps suggested in this article and you’ve got a bedrock of secured income covering your essential expenses, you can afford to retire comfortably.

Share post:

Subscribe

spot_imgspot_img

Popular

More like this
Related

The Engaging Power of 855-419-7365: A Digital Frontier in Communication and Branding

In the harried jumble of today’s digital marketplace, standing...

How to Get Powerful with 844-648-0958: The Insider’s Guide

844-648-0958 is more than just a line of numbers...

What 7815668000 Can Do in the Digital World Today

As technology advances, our lives change and businesses grow....

A Full Guide to Unlocking the Power of 8888996650

It's not always easy to get around in the...