Retirement is a stage in life where you want to sit back and relax after working hard for decades. But did you save enough to support yourself? Have you maximised your superannuation savings? It’s never too late to plan and contribute more towards your superannuation savings to have a comfortable retirement.
Superannuation is an investment fund designed to help you accumulate wealth for retirement. If managed well, it can provide you with substantial funds later in life. Here are some ways to maximise your superannuation savings:
Salary Sacrifice
One way to maximise your superannuation savings is to salary sacrifice. Salary sacrificing means contributing a portion of your pre-tax income to your superannuation. This contribution is taxed at a concessional rate of 15%, which is lower than the usual tax rate that you pay on your income. Not only does this save you money on taxes but it also adds to your superannuation balance.
Contribution from Your Employer
Another way to increase your superannuation balance is to receive contributions from your employer. The government mandates your employer to make contributions to your superannuation fund, which is called the superannuation guarantee.
The current contribution rate is 11% of your earnings — soon to be increased to 12% by July 2025. However, you can negotiate with your employer to make additional contributions, depending on your work arrangement.
Additional Personal Contribution
You can make additional personal contributions to your superannuation savings fund by contributing with your after-tax income and it will not be taxed again. The government also offers a co-contribution scheme, where eligible individuals can receive up to $500 from the government if they contribute a certain amount towards their superannuation fund.
Consolidate Multiple Accounts
If you have changed jobs multiple times, you may have multiple superannuation accounts that may cost you extra fees. Consolidating your accounts into one will save you money on administrative fees and make it easier for you to manage your superannuation account.
Maximising your superannuation savings is essential for a comfortable retirement. By salary sacrificing, receiving contributions from your employer, additional personal contributions and consolidating multiple accounts, you can ensure you have enough funds later in life.
Remember, the earlier you start contributing, the more your superannuation savings will grow! After reviewing your options and budget, you can contribute more to your superannuation and live a more comfortable life once you retire.
Start planning and contributing now for a secure retirement future. Contact Blue Diamond Financial to get started.