It's time to awaken your super
30 April 2024
5
min read
You want your money to work hard for you. See how to get on top of your super with a few simple but important steps.
For most people, your super is likely to be one of your biggest financial assets.
Awakening it can mean taking control of one of the most important investments of your life. More than 55% of Australians aren’t sure if they'll have enough set aside by retirement1, but you can awaken you super with these 6 simple steps.
6 steps you can take now to get on top of your super
How much super do I need to retire? Show content
How much super you’ll need depends on your personal circumstances, the type of lifestyle you want in retirement and how long your money will need to last.
The Association of Superannuation Funds of Australia (ASFA) publishes estimates of how much money you might need to spend each year for a ‘modest’ retirement lifestyle.
These estimates also show how much money you might need for a ‘comfortable’ retirement lifestyle with more leisure activities, health insurance and some overseas holidays. The budgets assume you’re healthy, own your home and are 65-84 years old.
| ASFA Retirement Standard |
Annual living costs |
| Couple – modest |
$46,994.28 |
| Couple – comfortable |
$72,148.19 |
| Single – modest |
$32,665.66 |
| Single – comfortable |
$51,278.30 |
Source: ASFA Retirement Standard, December quarter 2023.
You can work out how much super you’re on track to have when you retire using our Super Projection Calculator.
Consolidating your super means combining or moving all your super into one account.
Consolidating your super can be quick and easy and you may save fees as well as your time. That’s because a single account makes your super easier to manage and fewer accounts means fewer fees.
Before you consolidate your super accounts, you should consider if the timing is right and if you will lose access to benefits such as insurance or pension options, or if there are any fee or tax implications.
You can also search for any lost super you may have and combine it with your super account.
Lost super is money that is held on your behalf when your super fund, your employer or the government can't find an account to deposit your super into.
We aim to make it easy for you to find your lost super.
We're launching a new investment option menu on 1 July 2024.
Choosing the right investment option for you can make a big difference to your retirement lifestyle.
Your investment choices will probably change over time. What’s right for you at age 25 may not be right for you as you get closer to retirement. Take the opportunity to consider the investment options that best suit your circumstances.
The earlier you can start putting a little more into your super, the bigger the difference it can make by the time you retire.
You can help grow your super by making:
- before-tax contributions – from your money before it’s taxed, such as salary sacrifice
- after-tax contributions – from your money after it’s taxed, such as from your savings
Salary sacrifice is one of the ways to regularly contribute more money to your super as a before-tax contribution.
How salary sacrifice might benefit you:
- Pay less tax – you are likely to pay less tax on the money that goes into super than you would if it stayed in your take-home pay.2
- Reduce your taxable income – Salary sacrificing from your before-tax salary lowers your taxable income. So, you could pay less tax.
- Grow your retirement savings with the same or more take-home pay – Any extra contributions you make now can make a big difference to how much you end up with for retirement.
You can also make voluntary after-tax super contributions. An after-tax contribution is money you choose to pay into your super fund from your after-tax income such as your savings. It’s different from salary sacrificing, which happens before your income is taxed.
Be aware there are limits, or contribution caps, on how much extra you can put into your super.
We provide insurance in your super for when life doesn’t go to plan.
Insurance options through your super include:
- Death cover
- Total and permanent disability cover
- Income Protection
Everyone's insurance needs are different, so it's important to understand how much cover you have, and whether it is right for your unique circumstances.
Log in to Member Online to see your current level of insurance cover.
You can use our Insurance Needs Calculator to find out how much insurance you might need.
Deciding what’s best for you will depend on your personal circumstances and you may want to seek personal financial advice to get the most from your superannuation.
We aim to make it easy. Find out more about financial advice options or call us on 1300 360 750.
1. Australian Retirement Trust Financial Wellbeing Index 2024. Survey of 1,000 Australians, carried out by Ipsos on behalf of Australian Retirement Trust from September-November 2023.
2. If you earn more than $45,000 per year, you pay less than your normal tax rate (up to 45% + 2% Medicare Levy) on salary sacrifice contributions (15%, or 30% if you earn more than $250,000).