5 Useful Tips on How to Boost Your Retirement Savings
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5 Useful Tips on How to Boost Your Retirement Savings

According to the retirement standard of the Association of Superannuation Funds of Australia (ASFA), anyone who is single and wants to retire comfortably should have at least $550,000 in their super account. As for couples, they should have at least $640,000 in their retirement savings.

Regardless of what age you retire, here are some valuable tips to boost your retirement savings.

Tip 1: Start Early

The sooner you start to save for retirement, the more you can accumulate within your superannuation fund. If you start as early as your 20s, you can amass a generous amount of savings, while if you start saving in your 40s, you might be surprised that the amount you have is just not as much as you expected.

Consider contributing extra funds into your superannuation so that you can take advantage of the superannuation co-contribution scheme (depending on your eligibility). This scheme will allow the government to provide a co-contribution to your superannuation fund to earn below a particular total income.

Tip 2: Check and Review Your Super Fund

Make sure that your employer is contributing the right amount of money to your superannuation fund and that you are staying within ATO contribution caps for any additional contributions you are making. You might also be making contributions into a fund that is not competitive with the fees they charge or the investment options they provide, meaning that you may be better off by switching superannuation funds. By reviewing your super fund, you can ensure that you are saving enough money in the most suitable investments for your retirement.

Tip 3: Find Other Ways to Increase Contributions or Incomes

Your superannuation alone is not always enough to provide you with a comfortable retirement. Another way to increase your retirement savings is to make more money.

Look for other ways to boost your future retirement income. For instance, you can get a second job or work as a freelancer. You can also look for additional income sources such as investing in other assets like property, shares and bonds. By finding different ways to increase your income, you can further boost your retirement savings.

Tip 4: Avoid Taking Money out Too Early

It is essential to avoid taking money out of your superannuation fund before you retire otherwise, you will be penalised. Taking money from your superannuation fund will reduce your monthly income and might even ruin your retirement plans. If you need money outside of your superannuation fund, it is essential to transfer your superannuation to an account-based pension (money will come out of your superannuation account).

Tip 5: Talk to a Licensed Professional

A professional financial adviser aka financial planner can help you determine how much you need to retire comfortably. They can help you consider other ways to boost your retirement savings, such as investing in other assets like bonds, shares and property. They can also help you find out if you are contributing the optimal amount of money to your super system, and if not, they can help you rectify the situation.

Boost your Super!

If you want a comfortable retirement, you should start contributing to your superannuation fund as early as possible. Remember that the earlier you start, the more you can accumulate by the time you retire. It is also essential to bear in mind that your superannuation is not always enough to provide you with a comfortable retirement. This is why you need to find other ways to save up more money and boost your retirement savings.

Coastal Advice Port Macquarie provides tailored retirement financial advice specific to your needs. Let us work together to create a retirement plan that will allow you to live your golden years more comfortably. Book a call today!

DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.
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