For many Australians, hitting your 50s is when retirement planning starts to feel very real.
With less than two decades until the pension age of 67, it is natural to start asking whether your superannuation balance is on track — and what you can do to give it a final push.
The good news is there are still plenty of strategies available in your 50s to grow your nest egg. Here are some of the most effective.
Make additional superannuation contributions
One of the simplest ways to boost super is to tip in more. You can make concessional contributions (before-tax, such as salary sacrifice) up to the annual cap, currently $30,000 for most Australians.
These contributions are taxed at just 15%, which for many people is lower than their marginal tax rate.
There are also non-concessional contributions (after-tax), which allow you to put in extra savings up to $120,000 per year, with the option to bring forward more if you have the capacity.
Use catch-up rules if you can
If you haven't always maximised your concessional contributions, you may be able to take advantage of the government's carry-forward rule. This allows you to use unused concessional caps from the past five years, provided your total super balance is under $500,000.
This can be particularly helpful in your 50s if you're earning more than you used to and have the financial ability to contribute extra.
Check your investment option
The way your super is invested matters just as much as how much you contribute.
In your 50s, you may still have a decade or more of compounding ahead, so it is worth reviewing whether your current investment option matches your goals.
For example, a balanced or growth option may provide higher returns over time but with more short-term volatility. On the other hand, a conservative option may protect against downturns but limit long-term growth. The key is making sure your risk level aligns with your retirement timeline.
Consolidate and cut fees
If you've had multiple jobs over the years, there is a chance you may have more than one super account. Consolidating into a single fund can reduce duplicated fees and insurance premiums, leaving more of your money invested and compounding for retirement.
Even small differences in fees can add up to tens of thousands of dollars over the long term.
Foolish takeaway
Your 50s are a crucial time to get serious about superannuation. By making extra contributions, using catch-up rules, reviewing your investment option, and cutting unnecessary fees, you can give your balance a powerful boost before retirement.
The key is to start now. Every additional dollar you invest in your 50s has more than a decade to grow before you reach pension age — and that can make a big difference to your lifestyle in retirement.
