It's never too early or too late to start thinking about your financial future, and having a healthy superannuation balance is crucial to ensure a comfortable retirement. That's why many Australians are looking for ways to top up their super around the end of the financial year. Did you know that you could also top up your super while doing your regular shopping? In this blog post, we'll explore how you can boost your superannuation balance and how Grow My Money can help you do it in a fun and effortless way.
1. Take advantage of concessional contributions
One of the most effective ways to boost your superannuation balance is by making concessional – also known as pre-tax contributions. This includes employer contributions, salary sacrifice, and personal deductible contributions; the ATO states its threshold is currently $27,500 per year. The good news is you have until June 30th to make additional contributions to your super to maximise any unused concessional contribution cap. It's essential to check your contributions balance before making any extra payments to avoid exceeding the cap.
2. Consider non-concessional contributions
Non-concessional contributions are after-tax contributions you can make to your super fund. According to the ATO, you can currently contribute up to $110,000 each year, depending on your total super balance. Non-concessional contributions don't reduce your taxable income but contribute to your superannuation balance.
3. Use the downsizing super contribution
If you have reached the eligible age and have sold your home, you may be able to contribute up to $300,000 per person to your super fund as a downsizer contribution. It's an excellent way to boost your super balance and save on fees and taxes. The downsizer contribution doesn't count towards your contributions cap and doesn't require you to meet the work test. Read more from the ATO on the downsizer contributions into superannuation.
4. Shop and earn with Grow My Money
Did you know that every time you shop online or in-store, you can earn cashback that goes directly into your superannuation fund? With Grow My Money, you can earn up to 15% cashback when you shop at over 1,000 participating brands like eBay, The Good Guys, Appliances Online and more. It's free to join, and all you have to do is link your super fund to Grow My Money and shop with Grow My Money brands and retailers. You can also use the Grow My Money cashback app to browse deals and find new retailers to shop with.
5. Plan for the future
Finally, it's important to have a long-term superannuation strategy to ensure you're set up for retirement. Consider factors like your investment strategy, risk profile and contribution rate to maximise your super balance. You should also seek financial advice from a professional to help you set up the right plan for your goals.
Topping up your superannuation balance can be a crucial step towards a brighter financial future, and there are many strategies you can use to boost your super around the end of the financial year. From making concessional and non-concessional contributions to using the downsizer contribution and shopping with Grow My Money, plenty of options can help you grow your super balance and invest in your future. Don't wait another year to build your nest egg - take action today and secure a comfortable retirement!
With Grow My Money, you can also turn your shopping cashback into mortgage repayments, or alternate between cashback to your mortgage- saving you interest and time - or your superannuation. Sign up to Grow My Money to get started.