4 Tips for Growing Your Super as a Pre-Retiree

Pre-Retiree

Planning for retirement can feel overwhelming as the milestone draws closer, particularly when it comes to growing your superannuation. For pre-retirees, it’s the ideal time to focus on maximizing your super, ensuring financial security during your golden years. 

With careful planning and a few well-implemented strategies, you can maximize your savings and enjoy a comfortable retirement. This guide will provide you with key tips to grow your super and maximize every dollar you invest.

Boost Your Contributions

Adding to your super, in addition to the mandatory employer contributions, can significantly boost your balance. The earlier you act, the better, as your funds will have more time to benefit from compound interest. Here are some common ways to maximize contributions:

  • Salary Sacrificing: Speak with your employer about diverting some of your pre-tax income into your super. This strategy reduces your taxable income while increasing your super balance. 
  • After-Tax Contributions: Consider making voluntary contributions from your take-home pay. These can be particularly useful if you’ve received a windfall or have some spare cash on hand.
  • Government Co-Contributions: Depending on your income, you might be eligible for co-contributions offered by the government, further boosting your savings.

Rethink Your Investment Approach

As you near retirement, your investment focus may shift from growing wealth to safeguarding what you’ve already built. Reviewing your super fund’s investment strategy is crucial to ensuring it matches the stage of life you’re in.

Many funds allow you to choose between options ranging from high-growth plans to conservative ones. Growth-focused investments generally carry higher risks but offer greater returns over time, making them suitable for younger workers. 

However, as retirement approaches, adopting a more balanced or conservative approach can help mitigate susceptibility to market fluctuations. Take time to assess your personal risk tolerance and the time you have left before accessing your super. 

Combine Your Super Accounts

If you’ve had multiple jobs throughout your career, there’s a good chance you’ve accumulated more than one superannuation account. Consolidating these accounts into one can reduce the fees you’re paying, thereby simplifying the management of your funds.

Having multiple accounts often means paying unnecessary extra fees, which can erode your balance. By merging your accounts, you’ll reduce these costs and gain a clearer view of your overall savings. 

Check your accounts for any coverage before consolidating to ensure you don’t unintentionally lose any benefits. If you’re wondering how much super should i have saved up before retirement, BUSSQ provides helpful tools to guide you.

Consult an Expert

While DIY strategies can help grow your super, professional advice may take your approach to the next level. Retirement planning is complex, and a financial advisor can provide tailored guidance to optimize your savings strategy, taking into account your unique situation to create a personalized plan.

An advisor can also help you make sense of legal and tax implications as you approach retirement, ensuring you’re taking advantage of every opportunity to maximize your savings.

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