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Six ways to grow your super balance

You can grow your super using salary sacrificing, by changing your investments and making extra contributions.

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The more you have in superannuation, the less you'll need to rely on the age pension when you're retired, so it's important to make sure you're actively growing your super balance while you're still working. Thankfully, there are several different ways to grow your superannuation balance. Not only will you retire with more, but there are also tax benefits to growing your super that you can enjoy while you're still working.

The first step is to make sure you've got your money in a super fund with low fees and strong past performance figures.

Compare superannuation funds

Name Product Past Performance - 1 Year Past Performance - 3 Years Past performance - 5 Years Calculated fees p.a. on $50,000 balance
QSuper Lifetime - Aspire 1
The Lifetime option is a MySuper product that adjusts your investment mix each 7-10 years as you get older.
QSuper is a member-owned super fund and is one of the largest super funds in Australia.
Sunsuper Lifecycle Balanced
The Lifecycle Balanced option is a MySuper product that invests your super in a balanced fund until you’re near retirement.
Earn a Retirement Bonus of up to $4,800 when you open a new Income account. T&Cs apply.
Virgin Money Super - Lifestage Tracker
The Lifestage Tracker is a MySuper product that invests in a range of asset classes in line with your age.
Performance figures and fees are based on the LifestageTracker: Born 1969-1973. Earn Velocity Frequent Flyer Points for making contributions to your super (T&Cs apply).
HESTA - Core Pool
The Core Pool invests in a mix of asset classes and is an authorised MySuper product.
HESTA is an industry super fund open to all Australians and designed for employees in the health and community services sector.
Future Super Renewables Plus Growth
Future Super is Australia’s first 100% fossil fuel free super fund and is certified by the Responsible Investments Association Australia.
The Future Super Renewables Plus Growth option has a 20% asset allocation in renewable energy projects while excluding investments in live animal export, tobacco and gambling.
Australian Catholic Super Lifetime - Grow
The LifetimeOne investment option is a MySuper product that changes your investment mix as you get older.
A Catholic super fund open to all Australians and designed for people working in Catholic education, healthcare or aged care.

Compare up to 4 providers

The information in the table is based on data provided by Chant West Pty Ltd (AFSL 255320) which is itself supplied by third parties. While such information is believed to be accurate, Chant West does not accept responsibility for any inaccuracy in such information. Chant West’s Financial Services Guide is available at . Finder offers no guarantees or warranties about the data and we recommend that users make their own enquiries before relying on this information. Performance, fees and insurance data is based on each fund's default MySuper product. Where the performance, fees and insurance data for the MySuper fund vary according to the member's age, results for individuals between 40-49 years of age have been shown. Past performance is not a reliable indicator of future performance.

*Past performance data is for the period ending December 2019.

Strategies to grow your superannuation

Here are six strategies for growing your super balance.

Opt for a low-fee, high-performing fund

Superannuation fees eat into your returns, so the more you pay in fees, the less you'll have left when you retire. Each super funds charges different annual admin fees, investment fees and indirect fees. This can make it a difficult and confusing process when you're trying to compare funds. As a general rule, if you're paying over 2% of your super balance in fees each year, this is considered expensive.

While past performance isn't an indicator of future performance, it's wise to look for a super fund with a long history of strong returns. To do this, take a look at the returns over 5- and 10-year periods. The better your fund performs, the higher your super balance will be.

Salary sacrifice into your super

You can elect to contribute a portion of your salary or wages into your super via the process of salary sacrifice. With this process, the money you elect to send into your super is directed from your income before you pay tax on it. This means that the money will be taxed at the concessional super rate of 15% instead of your marginal tax rate, which could be up to 45%. This means you'll be reducing your taxable income in the process. You can learn more about how this process works in our salary sacrificing guide.

Make extra contributions

Your employer is legally obligated to pay you super as part of the compulsory superannuation guarantee. However, you can also make additional contributions to your super at any point in the year. There are limits in place around how much you can contribute. Currently (as of 2019), you can contribute up to $25,000 in concessional contributions (these are pre-tax contributions like what your employer pays and money you contribute via salary sacrifice). You can also contribute another $100,000 a year in non-concessional contributions, for which a tax deduction can be claimed.

Accept more risk

Generally, the greater the risk, the greater the potential return. If you're comfortable, consider switching your investments to a higher-risk option. Most Australians are in the default super option, which is generally a Balanced or Growth option. Take a look at the High Growth option and see if you're comfortable switching to this, instead.

One of the best ways to get more from your super involves adopting an age-based investment strategy. This includes working out how much risk you can afford to take based on your years to retirement. Age is crucial because if you have longer to wait until your retirement, you'll have more time to recover from a major setback and can comfortably accept more risk.

Start early, make more

Starting to save from an early age can make a huge difference to how much you have when you retire, mainly due to the power of compounding. For example, if someone saved $10,000 a year for 20 years while someone else saved the same amount for 35 years, both earning a return of 6% a year, the 20-year compounding amount would generate $367,856 compared to the 35-year saver which would generate $1,114,348 – more than three times as much.

Combine your superannuation into one fund

If you have worked several jobs, chances are you have contributed to various funds that you may have lost track of. Take time to contact all your super funds and consolidate your superannuation into one fund. This way, you can stop paying multiple sets of super fees. If you have more than one super fund, read our guide on how to consolidate your super.

Pocket Money podcast: The superannuation gender gap and how to grow your super

It’s never too late to grow your super

A little sacrifice that you make today will allow you to live a more comfortable lifestyle when you're no longer working. Even if you're only a few years out from retirement, you'll still benefit from contributing more to your super via salary sacrifice or making extra personal contributions.

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