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7 March 2022

How To Maximise Your Super: Superannuation Strategies You Should Try

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Most Aussies know about superannuation, but they can be unsure of how it works and, more importantly, how it will affect their life after retirement. 

When it comes to saving for your retirement, it’s important to provide yourself with the best possible financial situation, so you can enjoy your golden years. The more money you can contribute to your super the more you can grow your super in the long term.

By planning ahead for retirement, you can ensure you are making the right decisions about your super investments that will benefit you most in the long term.

The extra contributions you can make during your working life can help your super grow.

You may want to seek retirement planning advice from expert advisers at Hyland Financial Planning. They can provide financial strategies that will boost your super without impacting your cash flow, through implementing a tax-effective strategy and by taking advantage of contributions to super.

Here is a guide to some effective super strategies that can help you grow your money for your retirement:

How You Can Boost Your Retirement Savings

Superannuation can be an essential part of your wealth creation strategy. It’s important to form the habit of saving as much as possible through your super. If you save and invest your super wisely, you can have a sizable amount of money for your retirement.

Here are some effective super strategies to help maximise your savings:

1. Start Planning for Retirement as Early as You Can

“Time in the market is more important than timing the market,” says Jason Kirby, founder, and CEO of Aussie Super. The earlier you start, the more time your money has to grow, and the larger your super balance will be at the time of your retirement.

When it comes to investing in your super, it’s a great long-term strategy – simply because you can’t withdraw your super until retirement!

But this means you also get to benefit from tax advantages and compound interest so the amount of super you have in retirement can be maximised!

2. Contribute Regularly to Your Super and Enjoy the Tax Deduction

It is way more effective to make super contributions regularly, rather than all at once.

For Example:

Suppose you only make personal super contributions of $100 per month to your super in the first year. You’ll end up contributing $1200 for that year. Now, suppose you only contribute $100 per month to your super in the second year. You’ll be contributing $2400 for that year. In this case, you’ll have added $4000 in two years.

Making extra contributions to your superannuation can build your savings for retirement. You can even set up regular payments through your online banking or through your employer as part of a salary sacrifice agreement so that you don’t even need to think about it.

3. Making a Salary Sacrifice

If you’re looking for a way to increase your superannuation balance, consider making a salary sacrifice. Salary sacrificing means you agree to your employer that they will contribute some of your salary to your superannuation.

4. Consider a Self-Managed Superannuation Fund

An SMSF option is designed for those with the financial capability and time to manage their own super fund.

Unlike the other two options, an SMSF is not administered by a super fund. Instead, it is administered by an independent trustee. This means you are in charge of all the investment decisions.

Some Australian investors prefer this option because they feel it allows them to control their super fund decisions and investments. This option is especially suited for those who have extra money they want to invest in something more than just your stocks or shares.

To be able to set up an SMSF, you must meet some criteria:

1. You must be over 18 years old.

2. You must have been an Australian resident for at least nine months before commencing the SMSF.

3. You must not be bankrupt or have a voluntary administration.

4. Your super must not be part of a defined benefit fund.

5. You must have at least $2000 to set up your fund.

6. You must have at most $4.5 million in your super fund.

7. You must have at least one member who is 18 years old.

If you enjoy investing, starting a self-managed superannuation fund may be a suitable option for you. To help you decide whether this is the best option for your financial situation, it may be worthwhile seeking an expert financial adviser who can help you make an informed decision.

Seek a Financial Adviser to Help You Make the Most of Your Superannuation

Retirement planning experts can help you grow your super and ensure you are on track to achieving your retirement goals. They can help you to understand your investment options tailored to your risk tolerance and circumstances. To improve your superannuation balance, it’s important to start early!

Hyland Financial Planning can provide you with expert superannuation advice and guidance so you can achieve your financial goals for your later years in life.

Contact us today so we can set a complimentary appointment to discuss strategies!

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Hyland Financial Planning provide expert advice across the Lower North Shore area, Hornsby and Sydney CBD to talk to an expert in retirement planning, financial advice or how to get the most from your super book a meeting at one of our convenient offices.

Hornsby
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20 George St
Hornsby NSW 2077