Get your super back on track after COVID-19

When the COVID-19 pandemic struck Australia, forcing borders to close, and wide-spread lockdowns – business closures and job losses impacted many of us.

In fact, as many as 1 in 5 workers either lost their job or had their hours of work and income reduced¹ which meant they didn’t contribute as much, or at all, to their super. And over 3 million Australians took advantage of the COVID-19 early release of super program, with the average withdrawal being almost $8,000² and 25% of withdrawals resulting in super balances of less than $1,000³.

As Australia starts to reopen, and people return to the workforce, now could be a good time to take stock of the impact COVID-19 has had on your super balance and take some steps to get it back on track. 

How much super should you have at your age?

Research tells us there’s a gap between how much people have in their super now, and how much they need to fund their post-working years.

Whether you’re 24 or 64, knowing how your super balance stacks up against others your age, and what you should have at your age, can help you determine if you’re on track towards being able to fund a comfortable retirement.

Compare your super balance here

Getting your super back on track

To help get your super back on track you could consider these four simple ways you can add to your super.

1. Increase your before-tax super contributions

Adding to your super with before-tax money could be a tax-friendly way to boost your superannuation. As well as boosting your super, you could also end up paying less tax as these contributions are taxed at a maximum rate of 15% rather than your marginal tax rate, as long as you are not a ‘high income earner’^{^}. 

Read more about before-tax contributions

2. Make super contributions after tax

You can make a contribution to your super with your own ‘after-tax’ money. This method of contribution still enjoys the same concessional tax treatment when invested inside super, which may make it a simple and effective way to help boost your super. 

Read more about after-tax contributions 

3. Get some help from the government 

The government may make a superannuation co-contribution to your superannuation account up to a maximum of $500 if you are a low or middle-income earner and make a personal after-tax contribution to your superannuation.

Or, if you earn $37,000 or less, you may be eligible for a ‘low-income superannuation tax offset’ contribution of up to $500 from the government.

Read more about the government co-contribution 

4. Boost your spouse’s super 

If your spouse or partner is a low-income earner, a stay-at-home parent, or not currently working, they may not be receiving superannuation contributions from an employer. It may be worth looking at ways to grow their super, and by making a contribution yourself to your partner’s super account, you may benefit from a tax rebate.

Read more about spouse contributions 

¹ https://www.abs.gov.au/articles/people-who-lost-job-or-were-stood-down-flows-analysis-april-2020
² https://www.apra.gov.au/covid-19-early-release-scheme-issue-35
³ https://www.apra.gov.au/superannuation-early-release-scheme-insights-from-apra%E2%80%99s-pandemic-data-collection
^ The Government has set caps on the amount of money you can add to superannuation each year on a concessionally taxed basis. In addition, the Government has set a non-concessional contributions cap. For more detail, speak with a financial adviser or visit the ATO website. Before requesting the rollover, you should also check with your other fund(s) to see if there are any exit fees for moving your benefit, or other loss of benefits (e.g. insurance cover). There may be limited circumstances where your employer is not required to accept your Choice of Superannuation fund form eg. if you have already exercised Super Choice in the last 12 months. Past performance is not a reliable indicator of future performance.