The impact of coronavirus on the economy has undoubtedly been huge, but where we’re going to see some of the biggest trouble emerge is superannuation.
APRA reported recently that over 3 million Australians took advantage of the COVID-19 Super Early Release Scheme to help with bills during the recent pandemic.
Over a third of these were aged under 30 And while it may have seemed a good interim solution, there are a number of concerned experts.
Already the number of Australians over 60 who were planning to retire has dropped since COVID-19 with many forced to keep working because of their super account balances falling as a result. It’s now likely younger generations will also face the same fate due to withdrawing from their accounts early this year while at the same time not making any new contributions.
Pauline Taylor a finance and economics consultant said, “People will possibly have $100,000 less in retirement. This is when compound interest has its greatest impact so it’s better to get money to super as early as possible rather than take it out.”
It’s clear Australians need to find ways to make more contributions to their super, but with the economic climate still unsteady and finances tight the question is, how? Well, the good news is that there are now easy ways to make extra payments that won’t cost you a cent.
Boost Your Super is one such avenue – a platform that helps you raise free and easy contributions for your superannuation each time you shop online. Simply sign up for free and then next time you’re paying for insurance, buying new shoes or anything else, Boost Your Super will receive a commission from the retailer which they pay directly into your super account where it can grow to be worth a lot more.
“Our aim is to help online shoppers effortlessly make more contributions to their super so they can retire with more,” says Ngoya ‘Pep’ Pepela, Founder of Boost Your Super. “You shop at the same stores in the same way, except with an extra ‘click’ you get money paid straight into your super account, something which can really help those who need to work on increasing their super balances.”
Maz Zaman, Director of TaxFox and an established leader in the financial services industry, agrees that personally adding to your superannuation is a powerful way to maximising financial security in retirement.
“You can significantly amplify your super by combining these 3 elements; 1) The reduced tax rate of up to 15% on any earnings within super, 2) small regular extra contributions into your super 3) the power of compounding over many years. So even small amounts of regular contributions into your super can go a long way. They are particularly important points for those who have recently withdrawn $10k from their super.” says Mr Zaman.
“For example, a 30 year-old who contributes an extra $400 a year to their super, can potentially retire with an extra $34,000. This is easily achievable if you use something like Boost Your Super where you don’t even have to come up with the cash yourself. The current volatile global economy makes it even more important to be smarter with money and I encourage Aussies to look into services that help create good daily habits for incremental wealth building in the short-term which can make a big positive difference in the long-term,” he adds.
About Boost Your Super
Boost Your Super is a platform that helps you raise free and easy contributions for your superannuation. Each time you shop online at over 480 retail partners such as The Book Depository, eBay, Dan Murphy’s, ASOS and Catch they collect a commission and share it to your superannuation account. They also produce Hacks for Your Super Series so you can learn easy tips and tricks to further grow your superannuation and donate 1% of qualifying transactions to Make-A-Wish Australia. To make it even easier simply download their handy Boost Your Super Notifier Google Chrome extension which will let you know if you can earn super from a participating retailer when you’re on their site. And to find out how much free extra super you could be getting a year, simply visit boostyoursuper.com.au and use their new Boost Your Super Calculator tool.