When topping up your superannuation, think about how much are you prepared to sacrifice now, for that extra level of financial security later in life?
I’m a 44-year-old mum of two. I’ve taken a fair amount of time off to raise my two daughters and only now returned to work four days a week. I currently earn $75,000 per annum.
The combination of superannuation drawings and some age pension should ensure a comfortable retirement. Other things to think about: be as aggressive as you can stomach with the investment choice in your super fund. You can’t touch the money for at least 16 years, so volatility is really of no consequence. But an extra 1 per cent return makes a big difference – that original $680,000 at retirement projection becomes $980,000.. Freeing up some equity in your home, even if it doesn’t happen until your 70s or 80s, might give you a comfortable retirement and still permit a good quality of life now.
No, having two super funds doesn’t change that fact that via the bring forward rules you can contribute up to $330,000 into super as non-concessional contributions, provided you meet the qualification criteria.