Super tips for different ages

Planning for the future means finding the right super strategy by age. Because superannuation rules change down the track, it's incredibly helpful to keep your knowledge fresh so you don't miss out on building your wealth. Here are some essential superannuation tips to help you maximise your savings at every stage of life.

As always, seeking personalised advice is recommended, and the advice in this article is general in nature. If you’d like professional, personalised advice, please contact our team to arrange an appointment.

Super tips in your 20s

When you're first entering the workforce, retirement feels a lifetime away, but this is actually when you have the biggest asset of all on your side: time. Because of the way compound returns work, small choices you make now will have a massive impact on your final balance down the track.

Your main priority during this decade is sorting out the basics. Make sure you only have one active super fund so you aren't paying multiple sets of account fees that quietly eat into your savings. It's also worth checking your fund's investment mix. Since you won't be touching this money for decades, opting for a growth-focused investment strategy may help maximise your long-term returns.

Super tips in your 30s

Your 30s often bring major life changes like buying a home, progressing in your career, or starting a family. With extra expenses piling up, it's easy to push retirement planning to the back burner, but keeping an eye on your fund now pays off later.

If you're looking to buy your first home, look into the First Home Super Saver scheme, which lets you use your super fund to save for a deposit tax-effectively. If you have some spare cash in your budget, setting up a small, regular salary sacrifice with your employer means you can build your wealth using pre-tax dollars, which might also lower your personal income tax bill.

Super tips in your 40s

By the time you reach your 40s, your income is likely growing, but so are your financial commitments like mortgages and family expenses. This decade is the perfect time to find your sweet spot by balancing your daily budget with active wealth creation.

Take a close look at the default insurance policies attached to your super fund, such as income protection or life insurance. You want to make sure the cover levels match your family's current financial needs without overpaying for things you don't require. It's also a smart move to use any pay rises as an opportunity to boost your voluntary contributions before you enter the home stretch of your career.

Super tips in your 50s

If you plan to retire in the next 10 to 15 years, you may need to focus more on your super. Consider making extra contributions and reviewing your investment strategy. Be aware that if you make contributions greater than the super contributions caps you will have to pay extra tax.

To get the most out of your 50s, you might want to look into carry-forward contributions. This rule lets you use any leftover cap space from the last five years to put extra money away if your balance is below a certain limit. It's also a great time to check if a transition to retirement strategy could help you cut down your working hours without losing your current income level.

Super tips in your 60s

From age 60, you can access your super if you retire, and from age 65, most people have unrestricted access to their super regardless of their employment status. However, your investment options remain very important to ensure you have enough money to last throughout your retirement years.

During this decade, many people transition their fund from the growth phase into an income stream or account-based pension. This helps you enjoy tax-free regular payments while keeping your remaining balance invested to beat inflation. If you decide to downsize your family home in your 60s, you might also be able to use the downsizer program to inject a significant tax-free lump sum straight into your fund.

Super tips in your 70s

You can make personal or employer contributions to your super until you turn 75 without needing to meet any work test rules. However, if you want to claim a personal tax deduction for those contributions, you'll still need to meet the work test by working at least 40 hours in 30 consecutive days during the financial year. Your employer can claim a tax deduction for contributions until you turn 75.

Even if you've already stepped back from full-time work, keeping your super active can still offer great tax advantages. Just remember that once you reach this milestone, managing your minimum pension drawdowns becomes a priority to keep your retirement cash flow steady and compliant.

Beneficiary nominations

This is something that is often incorrect. Make sure you check who your listed beneficiaries are!

Many people don't realise that your super doesn't automatically form part of your estate or get covered by your will. You need to make a formal nomination directly with your fund. Reviewing whether you have a binding or non-binding nomination in place ensures your hard-earned savings go exactly where you want them to if the unexpected happens.

Unclaimed Super

You may have unclaimed super. You can conduct a free check securely through the ATO online services via your myGov account. It's a quick process that can instantly locate lost funds from old employers and consolidate them into your main account to stop multiple fees from eating away your balance.

In Need of Local Superannuation Help?

If you would like to know more super tips, or to devise a detailed plan for your retirement, please contact our friendly team.

Contact us today.

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General advice warning: The advice provided is general advice only. In preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.

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