Adding To Your Super

Super Basics

There are many ways you can add to your super, on top of the contributions from your employer. Adding a little extra to your super can be a great way to boost your super savings for retirement. You can grow your super by making some simple changes. Simply changing how you shop and by making voluntary contributions - both post and pre-tax you should notice a difference and set yourself up for a better financial future,

Top 3 ways to add to your super:

  1. Use SUPERSUPER
  2. Voluntary contributions (after tax)
  3. Voluntary contributions (before tax)

Remember Claire? (aka, your FBF, financial best friend), she has recently been adding to her super. We sat down over a coffee and asked her about what she was doing differently.

Claire: After doing lots of investigation around my super, I realised that I actually had a large gap between how much I thought I needed in the future and how much I actually needed. As a result of this, it has been important for me to look at ways I could increase my savings for retirement.

I sat down and looked at my budget and adopted the 50/30/20 lifestyle which helped me work out how much of my income I could comfortably use to contribute to my superannuation.

Here’s what I’ve started doing.

I shop using SUPERSUPER

Created by Child Care Super for its members, SUPERSUPER is an award winning rewards program helping women (just like me) and their families save more to their super, every day.

Participating retailers pay cash rewards into my super account each time I shop with them. This means I now shop with my favourite brands directly online or I use pre-purchase vouchers and shop in store or online - and add to my super each time.

By completing my everyday shopping with SUPERSUPER I am continually adding to my super account, without it costing me extra. And when it comes to my super account, a little extra can go a long way.

I’m making voluntary contributions after tax

I am boosting my super by adding my own contributions to my Child Care Super fund.
This means that I have set up a payroll deduction that contributes regularly to my super from my after-tax income (that is, my take-home pay). These contributions are in addition to any compulsory super contributions my employer makes on my behalf. And it can help reduce the amount of income tax I pay – potentially putting more money in my pocket at tax time. Child Care Super lets you contribute in 3 ways.

I am making voluntary pre tax contributions

This involves taking a slice of my pre-tax pay packet (it can be as low as $10 per week) and diverting it into my super account.

I always thought the term ‘salary sacrifice’ makes it sound like giving money away, but in fact it’s just the opposite! While it may not be right for everyone, it is worth knowing more about it.

By ‘sacrificing’ part of my pre-tax salary, and having my employer redirect it into my super account, I'm saving more for the future. That’s because I pay tax on the ‘sacrificed’ amount at the concessional rate of 15% (it’s 30% for high income earners), instead of my marginal tax rate.

Claire: Making extra contributions to your super balance may make a big difference in the long run when it comes to growing your retirement nest egg. Even contributing a small amount each week or month can make a difference to how much superannuation I might have in retirement, thanks to the beauty of compound interest.

Before you make any pre- or post-tax contributions, it’s important to consider if this approach suits your current financial situation. It may also be worth looking at other options you may have.

Claire’s Top Tips

  1. Starting using SUPERSUPER next time you shop!
  2. Get advice from Child Care Super about contributions. Call 1800 060 215 - they really helped me understand how I could contribute more. The really good thing is at Child Care Super there are 3 easy ways to make contribution payments, learn more.
  3. On the Child Care Super website you’ll find a range of calculators that let you compare how different levels and types of extra super contributions could work for you.