Salary sacrifice for your super is a simple way to boost your retirement savings while paying less tax.^[S2] Instead of getting paid and then making a personal contribution, the money goes straight to your super before it’s taxed. Because super contributions are taxed at 15%, and your regular income might be taxed at 32.5% or more, you effectively save money on tax.

Example: Let’s say you earn enough to be in the 32.5% tax bracket and decide to salary sacrifice $100 per pay.

• Without salary sacrifice you'd pay $32.50 in tax on that $100.

• With salary sacrifice, you only pay $15 in super tax.

• That’s a tax saving of $17.50 each time.

• Your take-home pay goes down by less than $100, but your super grows faster thanks to compound interest over time.

Just remember to stay within the annual contribution limits; your payroll team can help you set it all up.^[S1]

This example is for illustrative purposes only. It relies on various assumptions. If actual circumstances differ from these assumptions, actual results will be different

According to ASFA, around $168,000 at 40 puts you on track for a comfortable retirement. But don't stress if you're not there yet, many aren’t, but there are ways you can bridge the gap and grow your super in your 40s.³

Preparing, and understanding your super, is key to approaching a comfortable retirement. Our My Retirement Planner™ calculator estimates how much money you’ll need in retirement and how much income you are likely to receive in the future, so you can prepare and see where you’re currently at. ^[AD1] 

For a comfortable retirement, according to ASFA, you'll want around $595,000 as a single person or $690,000 as a couple.³ This covers things like:

• Travel and holidays

• Health insurance and medical costs

• Home improvements and maintenance

• Dining out and entertainment

• A decent car and tech gadgets

^{It’s important to note, these figures assume you own your home outright with no mortgage.}

If you or your partner has a lower balance, which can happen with career breaks and wage differences, you can help each other grow super through a few different strategies. You can split up to 85% of your concessional contributions with your spouse or partner, and make after-tax contributions to their account to boost their super balance. This can help you have more money overall when you both retire.^[S1] Learn more about the contribution rate and rebates for eligible spouse contributions here.

As your super savings aren’t automatically covered in your Will, nominating a beneficiary ensures that your superannuation is paid to the person or people you choose when you pass away.

Without a valid nomination, your super may not be distributed according to your wishes and could lead to delays or disputes, left to the discretion of your fund’s trustee. A binding nomination gives you the most certainty, as it legally obliges the fund to follow your instructions if the nomination is valid at the time of your death.

Aware Super is one of the biggest funds that allows you to nominate your beneficiary online, without the hassle of multiple forms and paperwork. Simply login to Member Online to nominate today.

If you're serious about optimising your retirement savings, professional advice is important. An adviser can help with tax strategies, investment choices, and catch-up plans tailored to your situation and earning capacity.

At Aware Super, we offer members a Super Helpful Check-in with our in-house super experts at no extra cost, so you can get all your superannuation questions answered.^[AD2] You can also book a comprehensive appointment to discuss all aspects of your finances (including insurance) with one of our in-house financial advisors for a fee, which can be paid out of your super if you choose (subject to conditions).^{[AD1] [AD3]}

It’s important to remember that you’ve got 20+ years until retirement, which means you can ride out market ups and downs for bigger long-term gains. Your savings also need to continue to grow after you stop working. Around 30% of the income paid from your super during retirement comes from investment earnings that happen after you retire (you can learn more about this here).

Most people in their 40s opt to focus on growth options rather than conservative investments. The potential returns over the next two decades make short-term volatility worth it.

Talk to one of our in-house financial advisors for expert advice on all things super.^{[AD1] [AD2]}

This depends on your situation. You can make an appointment to speak to one of our experts if you want advice on your specific circumstances.^{[AD3] [AD1]}