Superannuation, Contributions & The New Year

Regarding retirement, you want to ensure that your super is performing at its most optimal level when accruing funds.

Your super is probably going to be a primary income source for you during your retirement – that’s why it’s something that you want to ensure is performing optimally and accruing funds regularly.

You can assist in this process by making voluntary contributions. Making an extra contribution of as little as $20 per week for over 30 years could end up doubling what might otherwise be a $30,000 contribution through compound interest.

If you choose to contribute voluntarily to your super, you need to be aware of the difference between non-concessional and concessional contributions. Non-concessional contributions cover the payments that your employer makes on your behalf from your after-tax income, whereas concessional contributions can include salary sacrificing and personal deductible contributions.

If you are looking for a way to increase your super, you can opt-in to sacrifice some of your salary (often recommended to those with high or stable income) to your super as a voluntary contribution. Essentially, you dedicate more of your pay to your super, reducing what you pocket from that time period.

You can speak with us to find out whether or not salary sacrificing could be helpful to or suit your situation specifically.

You can also make personal deductible contributions if you are self-employed or a retiree, of up to $27,500 per year in concessional super contributions.

Choosing to make voluntary contributions to your super can be the difference between having your super fund perform and having it perform well. If you’d like to know more about options for your superannuation, you can speak with us to find out what you can do for your particular situation.