Is the balance in your superannuation account low?
Has it been some time since you or your employer contributed to your account?
Did you withdraw part of your super during the last 12 months, due to COVID-19?
If you answered YES to any of the above questions, it may be beneficial for you to top up your super by making additional contributions – small contributions made early and regularly can have a huge impact on your retirement savings!
If you’re thinking about making additional contributions, keep in mind that there are caps on the amount that can be paid into your super account in a financial year. If you contribute more than these caps, you may have to pay extra tax.
Here are some simple ways to boost your account.
1. Salary Sacrifice
Salary sacrificing into your super is done through your employer, where they pay a percentage of your pre-tax salary as an additional concessional contribution into your super account. This arrangement enables you to pay 15% contributions tax on the amount you contribute, rather than your marginal tax rate. Click here to learn more.
2. Personal Contributions
Alternatively, you may choose to make personal deductible contributions (also known as voluntary after-tax contributions). This method involves using your after-tax income (e.g. funds from a bank account), and submitting a form to claim the tax deduction. After-tax contributions may help you achieve the same result as salary sacrificing, if you claim a tax deduction. They are an option for people who are self-employed or others who cannot salary sacrifice via their employer.
You can make after-tax contributions through the Christian Super app, BPAY or direct bank transfer. To learn more about making personal contributions, click here.
3. Spouse Contribution
If you have a spouse, they can boost your super by making an after-tax contribution into your super account. If you’re not working or your income is under a certain amount, your spouse may be eligible for a tax offset of up to $540 per year if certain conditions are met. Click here to learn more.
4. Government Super Co-contribution
The government super co-contribution is designed to help boost the retirement savings of eligible individuals. If your income is under a certain threshold and you make an after-tax contribution to your Christian Super account, the government will also make a contribution of up to $500 each financial year. Click here to learn more.
5. Micro Contributions
For some people, making additional super contributions may seem out of reach. It can be hard to think about saving for the future when you have real and present financial pressures. Just remember every little bit can help when it comes to your retirement savings.
If you’re not in a position to make additional super contributions, take a look at clever initiatives such as Super-Rewards, which is an online shopping platform where retailers pay cash rewards into your super.
Each time you shop at one of the 300+ retailers on the Super Rewards platform, which includes Woolworths, Apple, The Iconic, Petbarn and Booktopia, you are rewarded with money straight into your super account. This means you can boost your super by shopping for groceries, Christmas presents or any of your essentials.
We have a four-part guide to superannuation contributions on our website that you can read here.
If you’re a Christian Super member, you can also access a free online financial advice tool within your MemberAccess account. The tool can assist you in the following areas: investment choice within Christian Super, insurances within Christian Super, super contributions and retirement adequacy. If you’d rather speak with someone, click here to learn more about the other types of advice you can access, including free over-the-phone advice.
Finally, our Member Care Team are always happy to help. Click here to contact us.
Disclaimer: The content of this article includes advice that is general in nature and does not consider your personal situation. Christian Super encourages all people considering their options in retirement planning to seek out qualified professionals who can provide specific personal advice.