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Boosting your super for 2021 and beyond

December 15th, 2020

This year has been hard on everyone, including our super balances! That’s especially true if your working hours and employer contributions were reduced, or you were forced to withdraw some super early to get by.

The good news is superannuation is incredibly flexible, and there are simple ways to start building your super back up. Better yet, even small contributions can make a surprisingly big difference over time.

Let’s take a closer look.

Two easy ways to top up your super

Both these options can be paid straight out of your bank account into super. As you’ve already paid income tax, they count towards your non-concessional (or after-tax) contributions cap, which has a limit of $100,000 per financial year.

  1. Government Co-contribution

The co-contribution is basically free money from the Government (up to $500) when you contribute to super yourself and meet eligibility criteria. This option is aimed at those on lower incomes to help them build their super. If you’ve worked fewer hours in FY2020/21 and earned less as a result, check to see if you might qualify this time around.

  1. Voluntary contributions

Set up a one-off or ongoing payment from your bank account into your super. Contributing this way may be most tax-effective for members who earn between $18,200 and $37,000. Plus it’s a good way to set-and-forget, so you’re not always thinking about your super, but you’re still making it work for you while you get on with your life.

  • You’ll need these details and a quick call to us on 1300 360 988 for your customer reference number.

Small contributions can make a big difference

Adding even small amounts to your super can have a bigger impact on your account than you might think due to compound interest (where you earn interest on your contribution AND on any interest it earns as well).

To work out which type of super contribution might benefit you most – and even how much you could afford to contribute – try using MoneySmart’s Super contributions optimiser.

This calculator asks for some basic info from you, then makes a recommendation to give you the biggest boost to your super.

Have questions about contributing?

Contact us between 8am and 6pm weekdays.

You can also book a callback for personal financial advice from a First Super Financial Planner to help you make the best decision for your circumstances.

We look forward to helping you.