Ways to grow your retirement savings
Planning for your retirement starts with the lifestyle you want and what it may cost. As retirement gets closer, you might find yourself with some extra money. It could be from an inheritance, higher income, paying off your mortgage or other debts, or simply having fewer expenses. If you're wondering what to do with it, making extra contributions1 to your super could help grow your retirement savings and increase your retirement income.
Super contributions
Employer contributions. While you’re working, your employer generally pays 12% of your salary into your super account – this is called the Superannuation Guarantee (SG). Employer contributions help you save for your retirement because the money is invested and could grow over time.
Personal contributions. You can choose to make extra contributions from your own money to your super account. There are several ways you could contribute and some unique contribution types you could be eligible for. Personal contributions could help you:
- Increase your retirement savings,
- Reach your financial goals, or
- Take advantage of tax benefits (where applicable).
You could salary sacrifice, make after-tax contributions, add money from the sale of your home or make one-off payments when possible. If you’re eligible, government co-contributions could boost your savings. Plus, starting early means your money has longer to grow.
Ways to help boost your savings
| Contribution type | Best if you | How it works | Potential benefits | Important information |
|---|---|---|---|---|
| Salary sacrifice | Want to boost your super from your pay. | Ask your employer to pay part of your salary directly into your super account. | Could help grow your retirement savings and reduce the amount of tax you pay. | Counts towards your concessional contributions cap. |
| After-tax contributions | Have extra money and want to contribute when it suits you. | Add money to your super from your take-home pay, savings or a withdrawal. | A flexible way to increase your retirement savings. | Counts towards your non-concessional contributions cap. |
| Downsizer contribution | Have sold your home and want to add to your super. | Contribute eligible proceeds from the sale of your home into your super account. | Could significantly boost your retirement savings. | Eligible members can contribute up to $300,000 per person (up to $600,000 per couple). |
| Spouse contributions | Want to help grow your partner’s super. | Contribute your after-tax money to your spouse’s super account. | May help increase your spouse’s retirement savings and could provide you a tax offset of up to $540. | Eligibility criteria apply. |
| Government co-contribution | Are a low- or middle-income earner. | Make an eligible after-tax contribution and the government may add money to your super. | The government may contribute up to $500 to your super. | Income thresholds and eligibility requirements apply. |
| Low Income Super Tax Offset (LISTO) | Earn $37,000 or less in a financial year. | The government refunds some of the tax paid on eligible concessional super contributions. | Helps you keep more of your savings. | You don’t need to apply if you’re eligible. |
Contributions rules to help grow your super
Carry-forward rule
Haven’t been able to contribute or as much as you’d like to? You could be able to catch up. You may be eligible to use unused before-tax contribution limits from the last 5 years to add more in one year. This could help boost your super and reduce tax as you get closer to retirement.
Bring-forward rule
Have extra money to contribute? You may be eligible to bring forward up to 3 years of after-tax contribution limits and add more to your super in one year. This can be useful if you've received an inheritance, sold an asset, or have extra savings to invest. It could help boost your retirement income and could give your money longer to grow.
Visit the ATO for more information.
Get your super ready for retirement
Taking regular steps could help you build the income you need for your retirement.
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Am I making the most of my contributions?
Make sure your employer is paying the correct super contributions into your account. If you’re making extra contributions, check your contribution limits to avoid exceeding any caps. You can view your contributions and transactions via the app, by logging into your account online or myGov account. -
Are my beneficiary nomination(s) correct?
Check the people you’ve nominated to receive your super reflect your current wishes and are up to date. -
Have I estimated my potential retirement savings?
Use our super projection calculator to estimate how your current balance, contributions and investment choices could translate into income in retirement. -
Are my investments still right for me?
As retirement approaches, your goals, timeframes and risk levels may change. Review your investment options to make sure they’re right for you. -
Do I need to combine super accounts?
If you have more than one super account, you could consider combining them into one account to help reduce fees and make your super easier to manage. -
Is my insurance cover still right for me?
Your insurance cover needs may change over time. Use our insurance calculator to check your amount of cover suits you and you understand the cost of it.
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Disclaimers
- Before adding to your super, consider your financial circumstances, eligibility, contribution caps that may apply, tax issues and when your super can be accessed. We recommend you consider seeking financial advice.