Five reasons why boosting your super could be a smart move

25 April 2025

Your super is one of the most powerful tools for securing a comfortable retirement. Making extra contributions now can make a big difference later. Here’s why many people choose to make it a key part of their retirement plan:

1. Maximise compounding growth

The earlier and more you contribute, the more time your super has to grow. Thanks to compounding returns, even small, regular contributions today can lead to significant savings over time.

What is compounding?
Compounding is when you earn returns not just on your original investment but also on the returns that money generates over time. Essentially, your earnings start earning their own earnings. To see the power of compounding in action, try the Compound Interest Calculator on the Moneysmart website.

2. Take advantage of tax benefits

Super contributions can be a tax effective way to save for today and retirement. Here’s how:

  • Lowering your income tax: Before-tax contributions (also known as salary sacrifice and concessional contributions) are contributions you make to your super before income tax is deducted. These contributions can reduce your taxable income, which means you may pay less tax overall.

  • Lower tax rate: Before-tax contributions are taxed at a lower rate (usually 15%) compared to your personal income tax rate, which can be much higher, depending on your income level. This can mean tax savings for you.

Plus, with Super SA’s default Triple S scheme, any before-tax contributions you make to your super aren’t taxed upfront. You pay tax when you withdraw your super which means you have more in your account, growing over time.

3. Employer contributions may not be enough

Your employer’s contributions (11.5% in 2024-25) are a great foundation, but they may not be enough to cover expenses for the lifestyle you want in retirement.

Here’s why:
  • Longer retirements: People are living longer, meaning your super needs to last 20–30 years or more.
  • Rising costs: The cost of living, particularly healthcare and aged care, continues to increase.
  • Lifestyle expectations: Many retirees want to travel, enjoy hobbies, and maintain their current lifestyle, which may require more than a conservative super balance.
  • Career breaks and part-time work: Time off for parenting, caregiving, or part-time work can impact your super balance over time.

 

By making extra contributions, you can help bridge the gap and set yourself up to adequately cover the costs of travel, hobbies, healthcare, and everyday expenses once you stop working. To see how your super is tracking and what additional contributions could mean for your future, try our Super Projection Calculator.

4. Potential government incentives

If you're a low- or middle-income earner, you might be eligible for government incentives to help you grow your super faster.

So, what are they?

  • Government Co-contribution: If you make a voluntary after-tax contribution to your super and your total income is less than $60,400 (in FY 2024–25), the Australian government may contribute up to $500 per annum to your super. The amount you receive depends on your total annual income and how much you contribute. This is essentially extra money that helps boost your retirement savings.

  • Low Income Superannuation Tax Offset (LISTO): If you earn $37,000 or less per year, you may be eligible for LISTO, which refunds up to $500 of the tax paid on your concessional (before-tax) super contributions. At Super SA, this only applies to before-tax contributions made to a Super SA Select account.

These incentives can make a significant difference over time, helping you grow your super without extra strain on your budget.

5. Flexible access in retirement

Super offers flexibility, allowing you to withdraw lump sums or set up an income stream account to manage your retirement cash flow effectively. With a Super SA Income Stream account you can start accessing your super from age 60 – well before you’re eligible for the Age Pension. Plus, if you’re still working, you can continue contributing to your Triple S account.

This approach, called a Transition to Retirement strategy, is something we think everyone approaching 60 should ask us about.

The superannuation schemes administered by Super SA are exempt public sector superannuation schemes and are not regulated by the Australian Securities and Investments Commission (ASIC) or the Australian Prudential Regulation Authority (APRA). Super SA is not required to hold an Australian Financial Services Licence to provide general advice about a Super SA product. The information in this publication is of a general nature only and has been prepared without taking into account your objectives, financial situation, or needs. Super SA recommends that before making any decisions about its products you consider the appropriateness of this information in the context of your own objectives, financial situation, and needs, read the Product Disclosure Statement (PDS), and seek financial advice from a licensed financial adviser in relation to your financial position and requirements.

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