Using a redundancy package to boost super
Goals
- Grow his super balance significantly before retirement.
Rules and eligibility
- Michael is under 75, so he can make personal contributions.
Financial Impact
Michael’s super at 67 — with $30,000 lump sum.
| Balance at 67 without $30,000 | Balance at 67 with additional $30,000 |
Investment earnings |
|---|---|---|
| $284,000 |
$320,000 | $6,000 |
Key benefits
By contributing this lump sum at 58 just a few years before retiring, Michael boosted his super balance immediately. Plus, the extra money also had time to grow in the concessionally taxed super environment.
Even later in life, a $30,000 lump sum can add roughly $6,000 to your super by age 67.
- Retirement balances are rounded to the nearest $1000.
- Numbers are presented in today's dollars, deflated using Average Weekly Ordinary Time Earnings (AWOTE) at 3.7% p.a.
- Based on an average Aware male member aged 58, with a current balance of $236,000, earning $0 p.a. and planning to retire at age 67.
- Assumes Michael will not contribute any SG in FY26.
- Based on current legislated tax rates as at 1 July 2025, and incorporating future legislated tax changes up to financial year 2027/28.
- Asset-based fee is assumed to be 0.15% p.a., capped at a maximum of $750 p.a. Fee cap is indexed in line with AWOTE of 3.7% p.a.
- Fixed fee is assumed to be $52 p.a., increasing in line with assumed wage inflation of 3.7% p.a.
- Investment returns are based on the Aware Super MySuper Life Cycle option, assumed to be CPI + 4% until age 55, reducing from CPI + 4% to CPI + 2.75% between the ages 55-65 (inclusive) and CPI + 2.75% from age 65 onwards.
- Investment returns are assumed to be net of tax.
- CPI is assumed to be 2.5% p.a.
- No insurance premium is considered.
- Projection does not allow for any Low-Income Super Tax Offset (LISTO) or Government Co-Contribution amounts.
- This example is for illustrative purposes only and is not intended to provide a guarantee on outcome. It is a broad illustration of the steps a member could take, but the actions appropriate for an individual will vary depending on their personal circumstances. The case study is based on current regulatory requirements and laws, including tax rates, which may be subject to change. Investment return assumptions are for illustrative purposes only and for simplicity assume an average rate of return each year throughout the investment period. Actual returns year on year may vary materially and can be negative as well. If investment returns/inflation are higher/lower, final balances will differ. Consider if this is right for you and read our Product Disclosure Statement (PDS) and Target Market Determination (TMD) before making a decision about Aware.
Your quick guide to lodging a notice of intent
This video shows you how to claim your tax deduction after making an after-tax contribution to super.
Where to next?
* Before contributing, consider the relevant superannuation thresholds including the current annual limit for all before-tax contributions and after-tax contributions. Exceeding any of these thresholds, may reduce any tax benefits you could receive. Visit aware.com.au/grow.
[AD1] Advice provided by Aware Financial Services Australia Limited (ABN 86 003 742 756, AFSL 238430), wholly owned by Aware Super.
[AD2] Members can get advice about their Aware Super accounts at no extra cost, or advice on their broader needs for a fee.
Past performance is not an indicator of future performance.