Boost Your Super
Super is a long-term investment. The more you put in, and the longer you leave it in the fund, the more you will take out.
Fund earnings and the power of compound interest will ensure your money grows to a sizable nest egg. But there are several ways to boost your super by adding to what your employer is contributing for you.
One way is to salary sacrifice. This means you get your employer to put some of your pay directly into super for you. Not only will this add to your super savings, but you’ll also save tax that you’d otherwise pay on that portion of your income.
Another way to boost your super is to make personal contributions; that is, contributions out of your own (after-tax) money.
Depending on certain conditions, when you make personal contributions you may even be eligible for a Government Co-contribution. This means for every dollar you contribute, the government will match it up to a maximum of $1,000. Co-contributions are worked out by the Tax Office and would depend on a number of factors including your income and how much you contribute.
To increase your combined household super you can contribute on behalf of your spouse to a super fund. When you do so, you may claim a tax offset on spouse contributions if your spouse is not working or earning a low income.
The thing to note is that you can boost your super with small amounts amounts you’d hardly notice. If you are young an increase of, say, $20 a week can make a big difference many years down the track. On the other hand, if you are near to retirement, you can still implement effective contribution strategies which can help you add significantly to your end benefit.
Seek Advice if unsure
If you’re unsure if these strategies are right for you, please seek professional advice. Club Plus Financial Planning can help you or contact the Club Plus Member Services Hotline on 1800 680 627 if you have a query alternatively click here to submit an enquiry.
