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6 super hacks to retire richer (even if you have a low income)

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We all want to retire richer, but are you doing anything to make it a reality? Here’s how to maximize your super, even if you don’t have a lot of cash.

While retirement and fear are easily discouraged, you will never have enough money saved stop workremember that even a modest retirement balance can significantly affect retirement.

For every $ 100,000 saved in retirement, you can expect these funds to earn 6 percent, or $ 6,000, a year. If it is paid as a pension, it is $ 500 a month without tax.

Of course, if you and your partner have $ 100,000 in super, it doubles. Depending on your overall financial situation, it may even be paid in addition to you receiving an old-age pension.

Every little extra you can pull in your super can help you retire richer. Here are six super-hacks to help you maximize your balance.

Hacking 1: Consolidate your accounts

Combine all your retirement accounts into one account that best suits your needs. The Australian Taxation Agency claims some 6 million Australians have multiple subaccounts, spending millions of dollars on double the cost.

These unnecessary fees will unnecessarily erode your superbalance. Combine multiple accounts easily. Just log in myGov website and with one click select one account to accept all your funds. That alone can save thousands of dollars.

Hacking 2: Check out your super-deposits

Check to see if each week your employer contributes the right amount to your retirement salary. An Industry Super Australia report found that nearly 3 million workers lose an average of $ 1,700 in super each year. And those who failed to super, can retire with a smaller amount of up to $ 60,000.

If you believe there is a defect, contact the ATA to conduct an investigation on your behalf.

Hack 3: Benefit from joint contributions

If you earn less than $ 52,697 a year, consider an additional post-tax contribution to take advantage of appropriate joint contribution from the government. Under this scheme, you can contribute up to $ 1,000 in post-tax money and receive a maximum joint contribution of $ 500. This is a 50 percent return on your investment.

The ATA will determine how much you are entitled to if you are file a tax return. If you are eligible, the government will pay a joint contribution directly to your fund. You don’t need to do anything more than make a down payment at the expense of savings after taxes.

Hack 4: Benefit from spousal contributions

See if you can benefit from the extras contribution to the super. If you make contributions to your partner’s supermarket and he has a low income or is not working, you can claim a tax credit of up to $ 540 per year.

Hack 5: Make any long-term savings in super

There are rules as to how much you can contribute in super and when, but any retirement savings will be conducted in a tax environment.

In the accumulation mode of your fund, income and capital growth is taxed at 15 percent, not the marginal tax rate. Later, when you receive a stream of income from your super, these assets are stored in a non-taxable environment. This makes your retirement your personal tax haven.

And if you are thinking of selling your family home to reduce its size, you can reap the benefits Rules for the contribution of the reducer. This allows you and your partner to contribute up to $ 300,000 each to retirement. This step can significantly increase your retirement balance just when you need it.

Hacking 6: Seek professional guidance

Of course, there are a number of rules regarding retirement that you need to know. To maximize your retirement nest eggbe sure to seek the advice of a specialist a financial advisor or a qualified accountant.

While it’s never too early to start making extra contributions to Super, it’s also never too late. Even small steps towards the end of your working life will help you retire richer.

This is an edited version of the article that originally appeared on Wealth AFA Group and reprinted here with permission. This article contains general information only. This should not be relied upon as independent financial or tax advice. If you are looking for specific professional advice, talk to your registered tax agent / financial advisor or contact Wealth AFA Group.

https://www.ymyl.com.au/retire-richer/

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