Back to: Your superannuation

There are several steps that may help you maximise your superannuation payout.

Take advantage of tax benefits

Legislative changes in 2007 – meant to simplify superannuation – have seen the tax-effectiveness of superannuation as an investment vehicle considerably enhanced, especially for those nearing retirement. For example, under the new rules, all super monies paid out after age 60, either through a lump sum or pension is tax-free.

Learn more about this by viewing our tax advantages of super demonstrator.

Consolidate to one super fund

Since the government's Super Choice legislation, you no longer need to change super funds when you change jobs. Consolidating your super into one fund means you only pay one set of fees, so there are fewer costs eating into your savings. It also makes it easier to keep track of and manage your super.


Choose a superannuation fund that may earn a better return

While Super Choice delivered freedom for employees to choose which funds their employer contributions were invested in, many employees still fail to take up the option and through non action, 'accept' the default investment type of their employer. This may not be the most appropriate fund for you.
What then might be the most appropriate? The answer may not be so straightforward. Myriad products, shifting legislation and your own evolving risk profile all make deciding what fund is best for you a complex task.

Make additional superannuation contributions

The 9% employer co-contribution is a good start, but most experts agree that with our increasing life spans, additional superannuation contributions may be needed to fund the extra years of retirement. A 45 year-old, paid monthly and who wants to retire at 65, only has 240 monthly pays left to accumulate the necessary nest egg. Is this enough time?

The good news is that making extra personal contributions to your superannuation each pay can help bridge the gap between what you have now and what you might require in retirement.

Seek professional advice

A Westpac Retirement Specialist can examine the appropriateness of your fund selection and what you're putting towards your nest egg to identify whether your superannuation is on track to meet your retirement needs. And if there is a gap, we may be able to show you ways that could help close it even if you only have a few years before retiring.

Plus, our How to maximise your retirement payout demonstrator uses an example to illustrate how effective the points discussed above can be in making a super difference to your retirement savings.