Updated on 16 February 2024
5 minute read
Super is a powerful tool for building financial security. But are you using all the benefits of super to your advantage? Here we give you 10 ways to unlock your super's full potential as one of the best ways to save money for your future.
Super is a crucial part of your financial freedom in retirement. The more you save, the more you'll have. But when you're younger, it's one aspect of your finances that often flies under the radar.
This is where you can change your future.
By understanding and using the advantages of superannuation early on, you're not just saving for retirement. You're investing in the lifestyle you want as you grow older.
It depends on your goals, how much time you need, and your situation. Super can be a tax-smart way to save money in the long-term. And you may even be able to use it to save for a deposit on your first home.
But there are strict rules on when you can withdraw super.
The earliest most people can access their balance is when they turn 60, if they retire (for anyone born after 1 July 1964). Although you may be able to use part, or all, of your super earlier in special cases.
Everyone can get their super when they turn 65. Even if you haven't retired.
There's plenty of reasons why using super as a savings strategy is a great idea. And you'll find some unexpected ways that you can save money, too.
Being with the right super fund can also further boost the superannuation benefits. Let's get started!
You work hard for your pay so you want to make sure you're getting the most you can.
When you salary sacrifice to super, you pay just 15% tax on your payments (if your income plus super is $45,000-$250,000 a year). Compare this with up to 47% tax that you’d normally pay based on your salary.
You may also be able to claim a tax deduction for the after-tax contributions you make to your super.
Just be mindful of how much you can add to super before you start paying extra tax (super contributions cap).
Super funds can get group discounts on insurance premiums, and they usually pass these savings on to members. So, it's often cheaper than insurance outside of super.
If your super fund offers automatic cover for insurance, you usually won't need to get a health check. It can be a more budget-friendly option. And useful if you have health conditions that make it harder to get insurance.
Another advantage of insurance through super is that you pay premiums from your super, not your take-home pay. It’s an easy set-and-forget payment. Although this may mean you'll end up with less in your super account for retirement.
Our insurance cover ranges from automatic options to tailored cover for members.
Check your optionsWith some super funds, you can start saving money on the things you need today with exclusive member deals.
Our Member Rewards give you access to deals and discounts with brands across Australia. You can pick up savings on everything from health and fitness to travel, and from shopping to event tickets.
It pays to shop around for the right super fund for you, too!
Investment earnings in your super account usually have a low 15% tax rate (or 10% on some capital gains). This is often less than the tax rate of up to 47% on investments outside of super.
When you retire, it's even better. If you use your super to open a retirement income stream, the investment earnings are tax-free.
Get a reward for adding to your super – it's possible! The government co-contribution is a bonus from the government for low and middle income earners.
To get it, you'll need to:
Add extra to your super after tax
Earn under $58,445 in 2023–24
Give your tax file number to your super fund
Meet the government's rules.
Most large superannuation funds include the cost of advice about your super account in your membership. This is a huge benefit if you're trying to save money.
Sure, you can find tips online, like this article. But it's only general information and doesn't factor in your personal situation.
Speaking with a qualified financial adviser will help to make sure you're on track for your savings goals.
The government's First Home Super Saver (FHSS) Scheme helps you save for a deposit on your first home using your super.
A few of the main benefits include the potential for tax savings and higher interest rates. So, you might be able to save faster.
And a bonus? Your money's locked away until you're ready to buy.
It's not for everyone though, so weigh up the FHSS Scheme pros and cons.
Super can give you added security for your savings if you go bankrupt. As long as your superannuation is in a regulated super fund, bankruptcy generally won't impact your retirement savings. Your money will stay safe from creditors.
This protection usually extends to money you withdraw from your super after bankruptcy.
But that's not the case for any money you take out before bankruptcy. If you do this, the money is an asset of the bankrupt estate.
Superannuation is one big investment portfolio. Your money’s pooled with other members’ retirement savings.
With all that buying power, super funds can invest in private assets such as airports or even motorways.
This can give you a unique opportunity to be a part of investments that aren’t publicly available. Or ones you typically wouldn’t be able to access as an individual investor.
We use our size and our scale to find and make investments to grow your super savings.
Check our investment performanceImagine if your salary was tax-free. That's a lot more money in your bank balance!
Superannuation benefits don't stop when you retire. Once you turn 60, you can usually access your super without paying tax. It doesn't matter if you withdraw money through a super income stream or take it out in one big sum.
Not all super funds offer the same benefits. So, it's important to choose one that helps you reach your goals.
Long-term returns and low fees are just part of the picture. As a member with us, you'll get access to our award-winning products and services, plus many other benefits.
Find out why 2.3 million people choose us.
Use the benefits of super to grow your savings and build a better financial future. Start your savings plan by checking the ways to make contributions to your account.
Start todayNot a member? It's easy to join now.
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