At Insight Wealth, we know that when you’re on a modest income, thinking about retirement can feel overwhelming. It’s easy to feel like you’ll never have enough super to stop working comfortably. But here’s the truth: every bit counts. Even a small super balance can make a big difference to your retirement lifestyle.
Let’s break it down — for every $100,000 in super, you could get around 6% per annum, or $6,000. Paid as a pension, that’s an extra $500 a month, tax free. If you and your partner both have $100,000 in super, that’s double. And depending on your situation, this income can sit alongside a full Age Pension.
Here are somesmart ways to grow your super — no matter what you earn:
Superannuation
We know that super is integral when planning for retirement but it’s important to understand how it works. A super fund is an investment vehicle that helps you save for your retirement. Past performance is not a guide to the future and you need to consider multiple factors when choosing a super fund.
Assess your Finances
Assessing your finances is the first step in creating a retirement plan. You need to work out your income, expenses and savings to see how much you can afford to put into your super. By understanding your current financial situation you can make informed decisions about your investment options and create a tailored retirement plan.
Retirement Plan
Creating a retirement plan involves setting clear goals and objectives, assessing your finances and selecting suitable investment options. By considering multiple factors including fees, costs and performance you can create a comprehensive retirement plan that suits you.
Consolidate Your Super Fund Accounts
If you have multiple super accounts you’re probably paying unnecessary fees. ATO reports that around 6 million Australians have more than one super account — and it’s costing them millions in duplicate charges. Planning for super can positively impact your career and overall life by ensuring financial stability and peace of mind for the future.
The fix: Log in to your MyGov account and consolidate your super in a few clicks. One account = less fees = more savings. Super is important for business owners and employees alike as it secures your financial future and supports the local economy.
Check Your Super Contributions for Retirement
Make sure your employer is contributing the correct amount to your super. Mistakes can happen and if you notice any shortfall the ATO can help investigate. Don’t leave free money on the table! Understanding the different types of investments within a super fund is crucial as they can impact your returns and fees.
When choosing a super fund remember past performance is only one factor to consider. Awards and ratings are also only one factor and you need to evaluate multiple criteria including the costs and performance associated with these investments to make an informed decision.
Claim Government Co-Contributions
If you earn less than $60,400 per year you may be eligible for a government co-contribution. For every $1,000 you contribute from after-tax income the government will contribute up to $500 — that’s a 50% return! Financial tools and services are available to all members of superannuation funds so everyone can benefit from these opportunities. Just make the contribution and lodge your tax return — the government does the rest.
Financial planning is important for all members of the community. By understanding and using the services available members can make informed decisions about their super options tailored to their individual circumstances.
Spouse Contributions
If your partner is a low income earner or not working you may be able to contribute to their super and receive a tax offset of up to $540. This can be a smart way to balance retirement savings between partners and reduce your overall tax bill. Plus various projects and investments can be considered when planning for retirement.
When choosing investment options you need to consider multiple factors such as past performance, fees and terms and conditions. Evaluating these will help you make informed decisions and choose the right financial products for your retirement plan.
Supercharge Your Super with Savings, Downsizer Contributions or Investment Options
Got long term savings? Putting them into super gives you access to a lower tax environment — 15% in accumulation phase and 0% once you’re in pension phase. It’s important to understand the terms and conditions before acquiring financial products including interest rates, fees and credit approval processes.
Thinking of downsizing your home? Under current rules you and your partner can each contribute up to $300,000 from the sale into super — a huge boost as you near retirement.
Tax Efficient Strategies
Tax efficient strategies are key to maximising retirement savings. Individuals can take advantage of various tax deductions and concessions to reduce their tax bill. The Australian government provides many incentives for people to save for their retirement and it’s important to know how to access them. Newcastle’s beaches and lifestyle are great but so are tax efficient strategies to secure your financial future so you can enjoy them both now & when you are retired. By considering withdrawals, fees and costs you can create a tax efficient retirement plan to help you achieve your goals. The Hunter Region is a popular retirement destination and you can enjoy a comfortable and secure retirement by planning and seeking advice.
Seek Advice
Superannuation rules are complicated — and that’s where we come in. A chat with one of our qualified financial planners can help you understand what works best for you. Plus there are services available to members of superannuation funds so you get the support you need.
At Insight Wealth we believe it’s never too early — or too late — to take control of your super. Being an informed member is key when making decisions about your super. Even small changes now can make a big difference to your future.
Need guidance or want to explore your options? Get in touch — we can help you build a retirement you’ll love.
Disclaimer: This blog is general in nature and does not constitute personal financial advice. Please speak to a qualified adviser before making decisions about your super.