The latest statistics from the Australian Taxation Office and APRA show that total superannuation assets hit $4.083 trillion at September 30. Of this amount, Australians have entrusted $1.02 trillion of their retirement savings to self-managed superannuation funds.

Planning for a comfortable retirement is a decades-long mission – a time when your savings can benefit from compounding returns. It’s not a case of setting and forgetting. Decisions need to be made along the way.

For those who want to take direct control of their retirement savings, SMSFs have proved to be a very effective vehicle. Essentially, they allow members to tailor their strategies to best suit their needs. To supercharge super savings for members of all ages, SMSF members can adopt strategies that align with the unique financial goals and circumstances of different age groups.

Here are some of the top strategies:

 

Below 30

Early contributions: Start contributing to superannuation as early as possible to leverage the power of compounding interest.

Growth-focused investments: Opt for growth investment options within super to align with a longer investment timeline.

Financial literacy: Enhance financial literacy by understanding superannuation concepts, insurance, and investment opportunities.

First home: Consider the First Home Super Saver scheme to make super contributions that can be used for a first home purchase.

Government co-contribution: Take advantage of the co-contribution scheme for lower-income earners to boost super savings.

 

30 to 45

Increase contributions: Lift super contributions in line with income growth to maximise long-term savings and compound interest benefits.

Balance debt and savings: Evaluate the benefits of additional super contributions versus paying down debt.
Consolidate super accounts: Find lost super and consolidate to avoid multiple fees.

Diversified portfolio: Build a diversified investment portfolio considering risk tolerance and long-term goals.

 

45 to 60

Salary sacrifice: Contribute a portion of pre-tax salary to super for tax benefits and accelerated savings, up to concessional contribution limits, which is $30,000 for the 2024-25 financial year.

Carry forward unused contributions: Use carry forward unused portions of concessional contribution caps for up to five financial years if your total super balance is below $500,000 on June 30 of the previous financial year.

Review insurances: As you approach retirement, review and adjust insurance needs to reflect reduced debt and financial obligations.

Additional contributions: Add to your SMSF from pay, savings, or windfalls such as an inheritance, up to non-concessional contribution limits, which is $120,000.

 

60-plus

Non-concessional contributions: If under age 75 and with less than $1.66m in super, make up to three years’ worth of non-concessional contributions in a single year. This allows you to contribute up to $360,000 in one financial year.

Downsizer contributions: Take advantage of making a downsizer contribution to super from the sale of a main residence you have owned for 10 years or more. You and your spouse can contribute up to $300,000 each to your SMSF.

Withdrawal and re-contribution strategy: Consider a withdrawal and recontribution strategy to equalise super accounts between spouses and reduce death benefit tax.

Professional advice: Seek advice to refine strategies, focusing on investment selection, tax, retirement income streams, and estate planning.

Healthcare costs: Plan for healthcare costs in retirement, including longterm care.

 

Key takeaways

By implementing these strategies, SMSF members can take control of their financial future and ensure their super is optimised for retirement.

Each generation can benefit from a tailored super strategy to balance immediate financial needs and future security.

 

Julie Dolan is head of SMSFs and estate planning at KPMG Enterprise.

This article first appeared in the Wealth section of The Weekend Australian.

 

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