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6 ways young Aussies can add $12,000 to their super

From consolidating your super to choosing the right investments, here are six simple strategies to maximise your super.

Young people in Australia and Australian money notes. Superannuation concept.
There are lots of different ways to boost your super balance and some won’t cost you anything. (Source: Getty)

More than three quarters of young Aussies think they should be doing more to maximise their super but they aren’t.

The research by Virgin Money found Aussies were neglecting their super because it was “too far down the track”, “not their top financial priority” or they were “focused on paying off other debts”.

But with the cost of living rising, there are some ways Aussies can boost their super that won’t cost them a thing.

“You can simply focus on implementing the no-cost options that don’t impact your cashflow now and then introduce additional contributions later,” Virgin Money Super general manager Christopher Sozou said.

“For instance, if a 35-year-old earning an average salary were to implement just one no-cost strategy, such as combining multiple superannuation accounts, they could be an extra $12,770 ahead by the time they retire at 65 years old.”

This is based on someone with one consolidated super account with a balance of $50,000 versus someone with two separate superannuation accounts. The calculations assume fees are charged on all accounts, including fixed fees and insurance fees.

6 ways to boost your super

Aussie singles need $545,000 in retirement savings and couples need $640,000 to fund a ‘comfortable’ retirement, according to the Association of Superannuation Funds of Australia (ASFA).

ASFA also found that young Aussie men aged 25-29 currently had just $25,173 in super, while women in the same age bracket had $21,774. For those aged 30-34, this grew to $51,175 for men and $42,240 for women.

If you want to give your super an extra boost, Virgin Money shared these six strategies:

  1. Combining your super accounts into one

  2. Choosing an investment strategy appropriate for you

  3. Making additional ‘after-tax’ (non-concessional) contributions

  4. Making additional ‘before-tax’ (concessional) contributions, such as salary sacrificing

  5. Obtaining financial advice from your super fund

  6. Obtaining independent advice from a financial adviser outside your super fund

It could be a wise idea to act now, with Virgin Money research revealing half of baby boomers regretted not implementing the above ideas when they were younger.

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