Dream about being rich in retirement? Consider these super hacks now
November 16, 2022
Just about all of us imagine getting rich someday.
Having enough money to sit on a beach drinking cocktails, or to travel the world while crossing items off your "bucket list" may be more possible than you might think with some careful planning.
The most important key to retiring rich is to start planning as early as possible.
Time Is Money
The younger you start, the easier it generally will be. Super should be tackled long before you retire, and clever use of some powerful strategies could save you thousands in tax and boost your nest egg big time.
Many of you may be strapped for cash in your 20s, but even as little as $10 per week will add up over time. There are different ways you can contribute to your super, and they can come with some extra perks:
Pre-tax contributions
Salary sacrifice super contributions could lower your income tax because the money comes out of your pre-tax salary. So instead of paying your marginal tax rate on your gross wage you only pay the 15 per cent super contributions tax on the amount you contribute to super.
Post-tax contributions
If you earn less than $42,016 in the 2022/23 financial year and make a $1,000 after-tax contribution to your super you may be eligible for a $500 co-contribution from the government. People earning between $42,016 and $57,016 in 2022/23 could also be eligible to receive a reduced government co-contribution (as the co-contribution works on a sliding scale). So if you are eligible - use it or lose it for the financial year.
Remember that any contributions you make are counted towards your pre and post-tax contributions caps.
Review your investments
You may be in a position to invest in higher growth options in your 20s and 30s, as you have more time to ride out the highs and lows of higher risk growth investments. TelstraSuper offers a range of investment options that suit all kinds of life stages.
You can check and change your investment options easily–through your online account. And if you want some help – you can speak with a TelstraSuper Financial Planning Adviser over the phone about your investments at no additional cost. It’s all part of your membership.
Want to learn more? Catch our latest webinar
Attend our Super 1,2,3 webinar to get across the super basics and what you need to do to make the most of out of your super. It’s 30 minutes and will help you take those couple steps that could make a big difference to your life down the track!
Any general advice has been prepared without taking into account your objectives, financial situation or needs. Before you act on any general advice on this website, you should consider whether it is appropriate to your individual circumstances. Before making any investment decision, you should obtain and read the relevant product disclosure statement which is available on the Website or by calling 1300 033 166 between 8.30 am and 5.30 pm (AEST) Monday to Friday.