Last year was hard for many of us, affecting us in different ways. The Australian Government were quick to recognise this would be the case and set up the Early Release of Super scheme to allow Australians who experienced financial hardship due to COVID-19 to have early access to their super. Many Australians used the scheme and accessed their super early.
Whilst we’re not out of the woods yet and many businesses are still struggling, the overall economic outlook is improving. The real estate industry has seen a huge turnaround compared with this time last year, with house prices rising at the fastest pace in 32 years as listing can’t keep with demand1.
For those who accessed their super through the Government Early Release scheme last year, now may be the time to consider how to rebuild your super again for a comfortable retirement.
How to rebuild your super
- Consolidate your super into one account
Out of all the things you can do, this is the quickest and easiest thing to do. Even if you’re unsure if you have other super accounts from previous jobs, we can check for you. We can find any lost or forgotten super accounts that you may have and roll them over into your REI Super account. We just need your TFN number to find your super. Have all your money in one place and save on fees.
Find and combine your super
- Set up regular contributions
Even a small amount each month can help rebuild your super. You can set up regular contributions in two ways: Salary sacrifice (before tax) through your employer OR set up a direct debit with your bank for a personal contribution (after tax). By making extra contributions, you may be able to save on tax. Combined with the power of compound interest, the more you contribute now to your super, the more you’ll have for retirement.
More on extra contributions
Are you invested in the right investment options?
- Think about how much investment risk you’re comfortable with. A higher growth investment option will have a higher risk with volatile returns over the short term. Other investment options may have a lower level of risk and but lower level of returns over the long term. We have different investment options to suit your level of risk (check out your risk profile).
- If you’re unsure which investment options are right for you, we offer free investment advice over the phone. Call us today 1300 13 44 33.
Not working or on a low income?
There are still ways you can rebuild super even if you are not working, or on a low income.
- Spouse contributions
If you have a partner, speak to them about how they can help contribute to your super by making a spouse contribution to your super account. Your partner may be entitled to a tax offset of up to $540 by making a spouse contribution. Double win.
Spouse / partner contributions
- Low income
If you’re a low or middle-income earner and make a personal (after-tax) contribution, the government may also let you make a super co-contribution up to a maximum amount for $500.
Government co-contribution
Need help rebuilding your super? Call us today 1300 13 44 33.
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1ABC News: House prices rising at fastest pace in 32 years as listings can't keep up with demand: CoreLogic
The information contained in this article does not constitute financial product advice. However, to the extent that the information may be considered to be general financial product advice, REI Super advises that REI Super has not considered any individual person’s objectives, financial situation or particular needs. Individuals need to consider whether the advice is appropriate in light of their goals, objectives and current situation. Members should obtain and read the Product Disclosure Statement for REI Super before making any decisions. REI Superannuation Fund Pty Ltd ABN 68 056 044 770 AFSL 240569. RSE L 0000314 REI Super ABN 76 641 658 449 RSE R1000412 MySuper unique identifier 76641658449129 April 2021.