To ensure you are in the best position to achieve this financial goal, it’s important to make thorough plans and wise financial decisions beforehand.
Now, this is easier said than done as there are a multitude of ways to approach retirement planning. To help narrow things down, focusing on boosting your super could be a great way to start.
So how do you go about growing your super
Here are 3 effective tips to help you prepare for your retirement by boosting your super:
Tip #1: Consolidate Your Super Funds
Some of you may not know this, but it’s possible to have multiple super funds.
This is especially common if you’ve moved jobs or have done some form of casual work over the years. If you have more than one super fund, you are also paying multiple fees to keep them all open. It’s wise to consolidate all of them into one fund.
Having all your funds in one super fund makes everything easier to manage and can help your money grow quicker. To add to this, it will also lessen the amount of paperwork and additional fees involved.
Tip #2: Sacrifice Your Salary
If you’re looking to boost your super, you may like to consider salary sacrificing.
This is an agreement that you can make with your employer to contribute a specified amount of your pre-tax salary and your bonuses to your super.
By doing this, it’s possible to reduce the amount of tax you pay. It’s also possible for you to claim the amount as a tax deduction, which are referred to as non-concessional contributions. This will allow you to invest more money in your super, which can be better for your long-term finances.
Extra Tip: It’s important to note that you will need to submit a Notice of Intent form to claim the super contribution as a tax deduction.
Tip #3: Start Making After-Tax Super Contributions
Lastly, another way to boost your super is to start making after-tax super contributions. If you ever find yourself with money to spare, you can put that money straight into your super.
While the after-tax contributions are capped at $110,000, you can contribute more if you haven’t made any non-concessional contributions over the last few years.
In other words, you can “catch up” on super contributions from previous years to make the most of your contribution caps.
Hopefully, this article proves to be useful when it comes to helping you manage your finances for retirement.
While making these changes may be tricky, we assure you that there are some great benefits involved. By following the tips that we’ve listed above, you’ll be able to maximise your super and be one step closer to the retirement of your dreams.
We understand how difficult retirement planning can be. Luckily, you have us to help you out.
We here at Blue Financial Ballarat are dedicated to helping our clients retire comfortably. You are in good hands as our experienced retirement advisers will help you navigate all the challenges that come with retiring.
For more information on what we can do for you, contact us today!
General Advice Warning: This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.