Because our super savings are generally done for us, not many of us actually take the time to look at them. We just hope that when the time comes, it will be enough. If it isn’t, then we’ll just figure something out, right? Well, why not figure out something right now to ensure that when you do retire, you have plenty of cash to live a comfortable life? That’s something you should do, especially if you’re young, as it is much easier to boost your super to ensure you have plenty of cash.
That said, how exactly does one boost their super? Well, there are actually many ways you can do this! Here are a couple of tactics you can employ to boost your super:
1. Make Tax-Deductible Contributions
Tax-deductible contributions are a type of voluntary contributions that you can make on top of what the employer will pay under your super guarantee. The money you contribute is actually after-tax dollars, and then you can claim them as a tax deduction when doing a tax return. You can also make non-tax deductible contributions, which means that you can make even more super contributions than before.
To make tax-deductible contributions, all you need to do is to fill out the appropriate documents and then turn them into the super fund. If you’re unsure how to do that, it’s best to talk to your super fund or speak to a financial adviser. So, remember to save some cash for yourself in your super fund as you’re working, and don’t forget to make tax-deductible contributions when you can!
2. Get Spouse Contributions
If you’re married and have a spouse who is working and making decent money, it would be a good idea for you to get them to contribute to your super fund as well. This is because the more you and your spouse contribute to super, the more tax-free dollars you will get to retire. Just know that what you can offset with tax deductions is limited. For instance, your maximum tax offset sits at $540, meaning that you need to contribute $3,000 a year for it and that your partner’s annual income needs to be $37,000 or less.
Of course, it may be near impossible to get your spouse to contribute that much or yourself to your spouse, or even half of that amount, but putting a little money in will help too.
3. Commit Salary Sacrifice Contributions
Salary sacrifice contributions are the same as tax-deductible contributions in that the money you contribute is actually after-tax money. The difference is that you can contribute a higher amount than you normally would with tax-deductible contributions, and this time, you’re doing it with before-tax income.
To make salary sacrifice contributions, you need to get your employer to agree to make them for you. All you need to do is to fill out the documents and then give them to your employer. Also, you should negotiate your salary with your employer and see if they will agree to make your salary sacrifice contributions.
Conclusion
Thanks to its flexibility and potential benefits, super are one of the best ways to save for retirement. So, if you’re not contributing to your super, why not start? If you’re already contributing but not sure if you’re contributing enough, do be sure to try out the tactics we’ve shared above! They can help you save more money in the long run, and your future self will definitely thank you for your effort.
New Wave Financial Planning is a financial advisory firm offering tailored advice to different clients based on their needs. If you are looking for the best financial advice on Gold Coast to meet your super needs, get in touch with us today!
