Key takeaways
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How to minimise super fees and insurance contributions
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How to boost your super while reducing your tax obligations
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The resources available to manage and track your super
How often do you think about your super? Is it something you check on regularly? It should be! Your super is your ticket to a comfortable retirement, and a little bit of attention now can make a world of difference later.
Not sure where to start? Following these ten tips can help you supercharge your super:
1 – Consolidate your super accounts
First things first, do you have multiple super accounts scattered around like lost sheep? If you do, it’s time to round them up and bring them back into the fold.
Having multiple accounts means you’re paying multiple sets of fees, and your money isn’t working as efficiently as it could be.
Consolidating your super into one fund will save you money and make it much easier to manage.
2 – Check those fees
Speaking of fees, it’s crucial to know what you’re paying. Super funds charge fees for administration, investment management, and insurance, amongst other things.
These fees can eat into your retirement savings, so compare the fees of your current fund to others in the market. Look for a fund with competitive fees that won’t hinder your financial goals.
3 – Monitor your investment options
Your super isn’t just sitting in a bank account; it’s invested in assets like shares, bonds, and property.
The performance of those investments can have a significant impact on your super balance. Make sure your super fund offers investment options that suit your risk tolerance and financial goals.
Consider speaking to us if you’re unsure which investment strategy is right for you.
4 – Keep an eye on your insurance
Many super funds provide insurance cover for their members, including life insurance and income protection. It’s essential to understand what insurance you have through your super and whether it meets your needs.
If you have duplicate insurance policies or coverage you don’t need, it’s time to review and adjust your insurance within your super fund accordingly.
Use this insurance calculator to determine if you have the right level of cover, and consider speaking to an insurance expert.
5 – Salary sacrifice for extra contributions
One way to boost your super is to contribute more from your pre-tax salary. This is called salary sacrificing. It reduces your taxable income while increasing your super balance.
The beauty of this strategy is that it allows you to save for retirement while potentially paying less tax. Just be aware of the annual contribution limits imposed by the ATO (Australian Taxation Office).
6 – Take advantage of government contributions
The Australian government offers a helping hand to those saving for retirement. The Superannuation Co-contribution scheme rewards low to middle-income earners who make voluntary after-tax contributions to their super.
The government will match a portion of your contributions (up to $500), effectively giving your super balance a bonus. Check the ATO’s website for the latest eligibility criteria and contribution limits.
7 – Track down your lost super
Recent data from the ATO revealed that there’s over $16 billion in lost and unclaimed super in Australia, and that figure is rising – it’s increased over $2 billion in the last financial year alone.
If you’ve changed jobs or addresses, chances are you’ve got some super floating around that you’ve forgotten about. The ATO’s myGov portal can help you track down your lost super and consolidate it into your active account. Don’t let your hard-earned money gather dust; put it to work for your future.
8 – Consider making voluntary contributions
Aside from the compulsory employer contributions, you can also make voluntary contributions to your super. These can be either before-tax (concessional) or after-tax (non-concessional).
The more you contribute, the more you’ll have when you retire. Just be mindful of the contribution limits to avoid penalties.
9 – Review your investment strategy regularly
Life changes, and so should your super strategy. As you approach retirement, you may want to adjust your investment mix to reduce risk.
Alternatively, if you are a lot further away from retirement, you might consider a more aggressive investment strategy to potentially generate higher returns. Regularly reviewing and adjusting your strategy can help ensure your super is on track to meet your financial goals.
10 – Seek professional advice
Last, but not least, don’t be afraid to seek professional advice. Superannuation can be complex, and getting expert guidance can make a big difference.
We can help you tailor a super strategy that suits your circumstances and goals. We can also provide valuable insights into the best investment options and insurance coverage for you.
* Based on KPMG Super Insights 2023 Report as at May 2023 KPMG Super Insights 2023 Report
This article has been prepared by NULIS Nominees (Australia) Limited ABN 80 008 515 633 AFSL 236465 (NULIS) as trustee of the MLC Super Fund ABN 70 732 426 024. NULIS is part of the Insignia Financial group of companies comprising Insignia Financial Ltd ABN 49 100 103 722 and its related bodies corporate (‘Insignia Financial Group’). The information in this article is current as at January 2024 and may be subject to change. This information may constitute general advice. The information in this article is general in nature and does not take into account your personal objectives, financial situation or needs. You should consider obtaining independent advice before making any financial decisions based on this information. It is recommended that you consider the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD) before you make any decisions about your superannuation. You can obtain the latest copy of the PDS (or other disclosure documents) and TMD by calling us on 132 652 or by searching for the applicable product at mlc.com.au. You should not rely on this article to determine your personal tax obligations. Please consult a registered tax agent for this purpose. Opinions constitute our judgement at the time of issue. The case study examples (if any) provided in this article have been included for illustrative purposes only and should not be relied upon for decision making. Subject to terms implied by law and which cannot be excluded, neither NULIS nor any member of the Insignia Financial Group accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in the information in this communication.