Let’s get real. Your approach to superannuation changes as you approach retirement. And while your personal circumstances will influence how you handle your super in your 60s, there are still plenty of ways to give it a turbo boost before you retire.
Everyone’s retirement dreams are different. Some plan to globe-trot every year, while others prefer downsizing and spending quality time with loved ones. Whatever your vision, one thing is clear—you need a solid plan as the finish line gets closer.
The Game Plan: Supercharge Your Super 💥
Having a clear strategy helps you figure out how much super you need and what steps to take to hit your retirement goals. The good news? Since 1 July 2022, the federal government has made it easier than ever to pump up your super, even in your 60s. You can keep making salary sacrifice and personal contributions right up until age 75 without having to satisfy the dreaded ‘work test.’
Pre-Planning = Freedom 🚀
Before you hang up your work boots, it’s critical to understand your spending habits. This will help you decide how much you need to live comfortably—or figure out how many more years you’ll need to hustle (whether full-time or part-time).
The Numbers Don’t Lie 🔢
ASFA estimates that for a comfortable retirement, you’ll need:
- $690,000 for a couple
- $595,000 for a single person
This assumes you’re getting a partial Age Pension. If you’re happy to embrace a modest lifestyle, you’re looking at $100,000.
So, which camp are you in? Grab your bank statements and analyse where your money goes. Go back a few years for a clearer picture of your financial habits.
Adding a Little Extra = Big Wins 🏆
Small, consistent contributions to your super can make a massive difference. Here’s how you can top up:
- Max Out Your Concessional Contributions
From 1 July 2023, you can contribute up to $30,000 annually (including your employer’s 11.5%). Use salary sacrifice to reduce your taxable income while growing your super faster. - Leverage Windfalls
Got a bonus or inheritance? Channel a portion of it into your super. Even small chunks can create a big boost over time. - Redirect Mortgage Payments
If you’ve smashed your mortgage, redirect those repayments into your super instead. You could contribute up to $120,000 annually on an after-tax basis—or use the bring-forward rule to dump $360,000 into your fund in one year.
Pro Tip: Don’t Exceed the Contribution Caps 🚨
Always check the rules to avoid paying extra tax. Refer to the ATO or consult a financial adviser to stay within your limits.
Sold Your Business? Think Super Tax-Free 💼
If you’ve owned a business for over 15 years, you could potentially channel part of the proceeds into your super tax-free. This is a highly complex area, so make sure you get expert financial advice to navigate it.
Lock in Your Legacy 🛡️
Estate planning becomes crucial as retirement looms. Super isn’t automatically part of your estate, so you’ll need to make a binding or non-binding nomination to decide who gets what after you’re gone.
- Binding Nomination: Gives trustees clear instructions (valid for three years).
- Non-Binding Nomination: Offers a general direction, but trustees have the final say.
Stay on top of these to keep your financial legacy airtight.
Super isn’t just about the numbers—it’s your ticket to freedom. Plan right, boost smart, and live your dream retirement.
