Posted in: Insights
Superannuation is one of the biggest financial commitments Australians will make in their lifetime.
But unlike a mortgage or education costs, it does not seem to weigh on people’s minds.
In some cases, you could even say that a number of Aussie put super on the backburner until they retire.
And while there are a number of reasons for this such as the fact contributions are compulsory, it pays to learn more about the best way to invest and grow your super as part of a comprehensive retirement plan.
Government incentives are often a common starting point for people who want to boost their super and retirement funds.
It is possible to increase or even double the amount of money you have in this account, but conditions do apply so it is best to seek out professional advice before going down this path.
There are also concessional rates for anyone over 50 who allocates up to $50,000 a year to their super, which may be money well spent in the long term.
If you have a fear of paperwork - which is probably one of the main reasons super funds are neglected in the first place - salary sacrifice may be an easier option.
This means adding a little extra to your compulsory payments each pay check and gradually growing your super.
If you have changed job recently you may have money in more than one account, which will add to administration costs and reduce the amount of interest accrued.
With this in mind, it is always a good idea to roll your different accounts into the one fund.
Low income earners may find that spouse contributions - where money is transferred to the partner’s account - can help to reduce your taxable income and increase your cash flow when you need it most.