When was the last time your employer made a contribution to your superannuation account? Is your current balance quite low? Did you have to pull out a big chunk of your superannuation in the last year because of the COVID-19 pandemic?
If you answered ‘yes’ to at least one of these questions, then you would benefit from making contributions to your super. After all, even small contributions, when done regularly, can soon have a big difference in your retirement savings.
If you’re still considering whether you should make additional contributions to your super, remember that there are limits to how much you can deposit into your account in one financial year and that anything in excess of that cap means you’ll have to pay a higher tax.
If you want tips on how you can boost your account, New Wave Advice, one of the best financial advisors on the Gold Coast, shares some helpful ones in this post:
Making a Salary Sacrifice
Salary sacrificing is done through the employer. What happens is that they take out a percentage of your pre-tax income and add that as a concessional contribution to your superannuation account. This way, you can pay 15% contributions tax on the amount you contribute instead of the marginal tax rate. If you need to learn more about this, you can speak with one of our experts at New Wave Advice.
Make Personal Contributions
Another option for you is to make personal contributions or voluntary after-tax contributions. As the name suggests, it involves the use of your after-tax income, for instance, money from your bank account, then submit a form for the claim of the tax deduction.
By going this route, you can achieve the same result as salary sacrificing if you are able to claim a tax deduction, that is. It’s a good option for self-employed individuals or those for whom salary sacrifice isn’t possible.
Use Spouse Contribution
Your spouse can also boost your super by simply making an after-tax contribution to your account. So, if your income falls under the specified amount, your spouse could be eligible for tax offsets that could be as high as $540 every year, as long as the conditions are satisfied.
Make Micro Contributions
For many people, it’s not feasible to make additional super contributions. It can be a huge challenge to save for the future when you’re already dealing with financial pressures presently. But the thing to remember here is that every little bit helps. Even the use of such platforms as Super Rewards allows you to put cash rewards into your super, so you can look into utilizing similar helpful initiatives.
Make Use of the Government Super Co-Contribution
The government super co-contribution is created to help add to the retirement savings of individuals who are eligible for this benefit. There is an income threshold that should be met. After making an after-tax contribution to your super account, the government will also contribute up to $500 per financial year.
Conclusion
It is important to add to your superannuation account as much as you can. With the world we are living in today, it is imperative that you prepare for whatever the future throws at you. Having enough retirement funds is going to give you peace of mind knowing that you won’t have to rely on anyone for your needs when you are unable to work anymore.
Hopefully, these finance tips and tricks can help you prepare for your future better and help you save enough in your super account.
If you need further assistance on how you can boost your superannuation account and how to better plan for your retirement, New Wave Advice is here for you. We offer reliable financial services on the Gold Coast and nearby areas. Contact us today to know more about our services!
