Supercharge your retirement savings
If you’re looking to build your nest egg without compromising your lifestyle, there are several tools and strategies available that may help you achieve your key financial objectives ahead of retirement.
Whether you’re playing catch up or hoping to get an early start on your dream future, here are a few strategies that may help.
Build your balance
There are characteristics unique to you that will determine the best way to optimise your savings. These include your age, how much you earn, how much super your employer pays, whether you have a spouse and how much money you can spare for super. Simply plugging these details into the MoneySmart Super Contributions Optimiser will give you an indication of which strategies may offer the biggest boost to your savings.
July 2024 changes
From 1 July, 2024, a few changes are coming to rates and thresholds that will potentially allow Australians to build their super balance more rapidly. First, the Super Guarantee rate is increasing from 11 percent to 11.5 percent which means employees will receive slightly higher compulsory contributions from their employer.
Second, the amount Australians are allowed to contribute to super, both before and after tax, is also increasing. The concessional (before-tax) contribution cap is increasing from $27,500 per year to $30,000 per year. Meanwhile, the non-concessional (after-tax) contribution cap is rising from $110,000 per year to $120,000. In other words, savers will be able to put more into the tax-friendly super vehicle.
Under the bring forward non-concessional contribution cap rule, if a member has a super balance less than $1.66 million as of 30 June, 2024, they can contribute $120,000 per year (up from $110,000 previously). Alternatively, under the three-year bring -forward period, they can contribute a maximum of $360,000 (up from $330,000).
Boost your super
Most of us hit the shops or shop online at least once a week, but did you know you could be adding to your super by earning rewards on those everyday purchases? Active Super Booster is a service for Active Super Accumulation Scheme members that allows them to earn rewards on everyday shopping. As an Active Super member, you have the opportunity to build your balance while shopping at your favourite retailers through Active Super Booster. With Active Super Booster, whenever you shop with one of our partner retailers,* a proportion goes back into your super.**
Health check
Active Super can help you to see if you’re on track for a comfortable retirement by completing a quick retirement health check with one of our financial planners. ^ Request a financial planning appointment here.
Pre-Retirement Seminars
Pre-retirement seminars are held for members who are nearing retirement and want to understand how to set up their super for retirement. We will outline when members can access their super and tips on budget planning, including cost of living and different ways to contribute to grow your super ahead of retirement. Find out more here.
Other strategies
Of course, there are other ways to increase your super savings, including through salary sacrifice or taking advantage of government contributions. It’s about what works for you, your family and your future.
To lean about more ways to build wealth for your retirement, read our Wealth in Retirement blog here.
Seek advice
If you require advice on your retirement needs, you can contact one of Active Super’s financial planners. Feel free to contact us on 1300 547 873 or make an appointment to see how we can help.^
*Partner Retailers are subject to change without notice. Depending on the Partner Retailer, rewards can be earned automatically when you shop with your linked debit or credit card(s) at a physical location at a Partner Retailer site or when you shop online through the Active Super Booster portal. To find out where you can shop to earn rewards, visit Super Booster map.
**For every dollar spent at a Partner Retailer, a proportion (between 0.5-20%, depending on the specific terms for the Partner Retailer) will be paid into your Active Super account in the form of a non-concessional super contribution. This is not redeemable as cash. Terms and conditions apply.
^Please note, should you choose to meet with one of our planners and decide not to obtain personal advice, no additional fee will be payable. However, fees may apply should you choose to proceed to personal advice. Your financial planner will discuss any fee payable when meeting with you and, if a fee is applicable, will advise you of the fee should you decide to proceed with obtaining the advice. Active Super has engaged Industry Fund Services Limited (ABN 54 007 016 195) (AFSL No 232514) (IFS) to facilitate the provision of financial advice to members of Active Super. Advice is provided by one of IFS’ financial planners who are Authorised Representatives of IFS. Fees may apply. Further information about the advice services that can be provided is set out in the relevant Financial Services Guide, a copy of which is available for download at www.activesuper.com.au or by calling 1300 547 873. IFS is responsible for any advice given to you by its Authorised Representatives.
Any advice in this article is general only and has been issued by LGSS Pty Limited (ABN 68 078 003 497) (AFSL 383558), as Trustee for Local Government Super (ABN 28 901 371 321) (‘Active Super’). The advice does not take into account your personal objectives, financial situation or needs. Before making a decision about any financial product, you should consider the appropriateness of the product having regard to these matters and the relevant PDS and TMD available at www.activesuper.com.au or by calling us on 1300 547 873. If you would like advice that takes into account your personal circumstances, please contact a financial adviser.
