If having more money in retirement sounds good to you, you might be interested to know that there are more ways than one to top up your super.
Generally speaking, your employer should be putting 11% of your before-tax salary into your super under the Superannuation Guarantee scheme. Did you know, contributions made into your super don’t have to stop there? There are more ways than one to boost your super savings, which you could start doing at any time.
Salary sacrifice contributions
Salary sacrifice is where you choose to have some of your before-tax income paid into your super by your employer on top of what they might pay you under the Superannuation Guarantee.
Personal (after-tax) contributions
Personal (after-tax) contributions are made using after-tax dollars, such as when you transfer funds from your bank account into your super.
Personal (after-tax) contributions are made using after-tax dollars, such as when you transfer funds from your bank account into your super. You notify your super fund of your intention to claim the tax deduction and complete your tax return accordingly.
If you’ve made an after-tax contribution to your super, you might be eligible for a co-contribution of up to $500 from the government. The Superannuation Co-Contribution Scheme is an initiative that aims to assist low to middle-income earners save for their retirement.
These are contributions you could make into your spouse’s super account, which you may want to do if they’re a low-income earner or not working at the moment. On top of that, you may be eligible for a tax offset of up to $540 depending on how much you contribute.
These are contributions you could make into your super at age 55 or over (up to $300,000) using the proceeds from the sale of your main residence, regardless of super contribution limits and restrictions that otherwise apply.
What to keep in mind
- If you exceed the super contribution limits, additional tax and penalties may apply.
- The value of your investment in super can go up and down. Before making extra contributions, make sure you understand and are comfortable with any potential risks.
- The government sets general rules about when you can access your super, which means you typically won’t be able to access your super until you retire.
You can check your AMP super balance by logging into My AMP or by calling 131 267.
Products in the AMP Super Fund and the Wealth Personal Superannuation and Pension Fund are issued by N.M. Superannuation Proprietary Limited (N.M. Super) ABN 31 008 428 322 (trustee), which is part of the AMP group (AMP). Before deciding what’s right for you, it’s important to consider your particular circumstances and read the relevant Product Disclosure Statement, Target Market Determination or Terms and Conditions available from AMP at amp.com.au or by calling 131 267. Read AMP’s Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you.
Any advice and information provided is general in nature, hasn’t taken your circumstances into account, and is provided by AWM Services Pty Ltd ABN 15 139 353 496 (AWM Services), which is part of the AMP group (AMP). All information on this website is subject to change without notice.