The primary purpose of superannuation is for retirement. However, in very limited circumstances, it may be possible to access some of your super balance earlier, like if you hit financial hardship.
The ATO (Australian Taxation Office) has recently reminded people that illegal early access schemes that aim to circumvent the rules can have significant financial consequences. But, during the pandemic, some Australians were eligible to withdraw up to $20,000 from super.
That $38 billion is estimated to have significant economic cost in the future and impact super balances in retirement far more than people expected, according to recent analysis from the Super Members Council.
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So, if you’ve had to dip into your super before you’ve retired to help you through tough times, is there anything you can do to help to get your retirement savings back on track?
There’s no doubt that many are still doing it tough and the thought of directing much needed money into super today may not be right for you. The good news is that when the time is right, there are some strategies that you could implement without compromising your standard of living today. You also can stop, start and change your strategy to suit your circumstances if your needs change.
Here are my 5 quick tips to boosting your super savings which could make all the difference if you’ve accessed your super before retirement.
1. Consider salary sacrificing pre-tax salary
Who could this work for?
This may be appropriate if you have sufficient cash flow to divert some of your pre-tax salary to super. Even small incremental amounts add up over time, which also gives the power of compounding returns the chance to work harder for you.
How does it work?
Salary sacrifice is an arrangement between you and your employer, where your employer contributes some…
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