Navigating through financial pressure

A recent article in The Australian¹ highlights the value of superannuation. In the current financial landscape, cost of living pressures loom large for more than half of all Australians and superannuation is emerging as a beacon of better times ahead.

As we step into 2024, it can be a good time to explore strategies for maximising your superannuation so you can work towards ensuring better times and a more secure future.

Consider these steps if you’d like to work on building your super in 2024:

1. Take advantage of salary sacrifice

Using salary sacrifice arrangements through your employer can allow you to contribute a portion of your pre-tax income directly into your superannuation. This can not only bolster your retirement savings over time, you can save on the amount of tax you pay.

2. Contribute voluntarily

Wherever possible, take advantage of voluntary contributions to boost your superannuation savings. Every little bit—combined with the power of compound interest—can help accelerate the growth of your retirement savings. You may qualify for government co-contributions by contributing a certain amount from your after-tax income. Book a chat with one of our super specialists to find out if you’re eligible or how to qualify.

3. Review your investment strategy  

Your tolerance for risk and your financial goals may change at different ages. Periodically reassess your superannuation investments to ensure they align with your goals and needs. You may wish to diversify your investments to avoid or manage potential risks and speaking with a super specialist can help—Book a chat today.

4. Consolidate multiple accounts

If you have more than one superannuation account, bringing them into one account can help you save on the number of fees you pay and make it easier to manage your investments. Review your super accounts and consider streamlining your retirement savings into one account and potentially increase your overall returns.

5. Stay informed  

Keep informed about any changes in superannuation regulations or legislation that might impact your contributions and withdrawals. Staying ahead of changes ensures you can adopt a proactive strategy as you maximise your potential to save.

6. Review your insurance cover

Superannuation accounts often include insurance coverage. Review your cover to ensure it aligns with your needs and consider whether your cover requires some adjustment if your needs have changed. That way you can prevent paying for insurance you may no longer need and direct more funds toward your retirement savings.

By implementing some or all of these strategies, you can take steps to save more for your retirement and focus on a comfortable lifestyle ahead.

[1] “Half of us are struggling financially and view superannuation as a ‘lifeboat’”, Megan Neil, The Australian, January 14 2024.