Six tips to supercharge your retirement savings

Building your retirement fund can be a daunting task, but understanding the resources available through your super fund can make things a lot easier.

Yet, according to the TAL and Investment Trends 2023 Retirement Income Report, 65% of non-retirees are unaware of the retirement income products offered by their super funds.¹

With the right information, you can harness these tools to supercharge your retirement savings. Explore these six essential tips to maximise your financial future and ensure a comfortable, secure retirement.  

1. Sacrifice now to save later 

A little bit can go a long way, and this has never been more true than in the case for salary sacrificing into your super. This is where you choose to have some of your before-tax income paid into your super account by your employer, on top of the 11.5% they pay with the super guarantee (which changes to 12% on 1 July 2025).

Making salary sacrifice contributions does involve a reduction in your take-home pay, but it also means you could increase your retirement savings while potentially reducing your personal income tax. These concessional contributions are taxed in the super fund at a rate of 15%, which is generally less than your marginal tax rate. Even just skipping your daily coffee and putting that extra $5 a day into your super could turn into thousands by the time you retire. 

AMP’s Salary Sacrifice Calculator can help you do the sums in just one step. Before making extra contributions, make sure you understand and are comfortable with any potential risks.   

2. Find gaps in the budget

On the road to retirement, your budget is your map to ensure you don’t overspend once you get to your destination of work-free life. Before you retire, use your budget to track your spending and identify where you might be able to cut as you phase into retirement, as well as anywhere you have a little leftover, which you could consider redirecting those towards your future self via super or other investments. 

You can use AMP's Budget Planner Calculator to see what you currently have incoming and outgoing.

3. Conquer your debt 

A mountain of debt can feel a bit scary. The best way to climb a mountain? One step at a time:

• Make a list of how much you owe and to which providers, and how much you pay in fees and interest to each. Multiple debts can mean multiple fees and interest charges, which is why consolidating your debts into a single loan, with a lower interest rate and lower fees, could help you to save money. However, before you make any decisions, you’ll want to look into whether your lender is licensed by ASIC and if you’ll really be saving money once you factor in interest rates, fees and any additional charges. 

• Another idea to consider is making extra repayments on top of your regular repayments. This could help you pay off what you owe at a faster rate and you’ll typically pay less interest, which could mean thousands of dollars in savings, depending on how much you owe. Seniors between the age of 55 and 60 have access to Transition to Retirement pensions, where you can access your super to pay down debts. However, before making extra repayments, check out the conditions of your loan, as there are some lenders that might charge you for paying off your debt early.

• It could also be worth shopping around and refinancing your debt to another lender – there are a number of comparison websites out there that could help do some of the legwork for you. 

4. Know what you’re entitled to

Getting older has its upsides – familiarise yourself with the benefits that come from being of retirement age. Seniors over the age of 60 may have access to cheaper public transport, health care and prescription medications by way of the Seniors and Pensioner Concession Cards. 

If you’re over the age of 67, you may also be eligible for the Age Pension². And seniors at Age Pension-age who don’t qualify for the Age Pension may still have access to the Commonwealth Seniors Health Card, which offers concessions on prescriptions, bulked bill appointments and, depending on what state you live in,  can also lower your electricity and gas bills, property and water rates, healthcare costs and public transport fares.

Depending on eligibility, seniors can also access tax offsets³, government loans or pension payments in advance⁴ to assist with immediate expenses. Knowing what’s available can help you plan your retirement income and ensure you’re getting the support you deserve. 

5. Reconsider your retirement timeline  

Do you know the age you want to retire at? Could you stretch it out a little bit? It doesn’t have to be a long-term solution, but working for a little longer – even part-time – could help you pay down any outstanding debt or top up your super savings for retirement. Accessing retirement advice can be a simple way to figure all these questions out.

Eligible AMP Super members may have access to the digital Retirement Health Check, a super simple online tool that can tell you what age you can access super, how much is enough to retire on and an estimate of your income in retirement. At the end you’ll receive a Retirement Income Score and My Retirement Report, and can play around to model different scenarios and strategies to improve your score.

AMP also offers other ways to access digital advice about your super, through a super coach or helpful webinars, for no extra fees. 

6. Make the most of features within your fund 

After the Retirement Income Covenant was introduced in 2022, super funds have been rethinking their strategies to help Australians manage their income in retirement so they can live their retirement comfortably. 

AMP Super has launched a new Lifetime feature, designed to improve your income when you retire. The Lifetime feature works in the background of your AMP super account to maximise your retirement income options by calculating a discounted value to be used in retirement in the Government Age Pension asset test, which typically leads to more Age Pension eligibility. You can play around with AMP’s Retirement Simulator to see how it can affect your retirement savings in the future. 

While for some of us planning for retirement feels far away or even overwhelming, there are things you can do now to set your future-self up for the better.