If you've hit your 40s, 50s, or even early 60s and are worried that your superannuation balance isn't where it should be, you are not alone.
Many Australians find themselves in the same position, juggling mortgages, family expenses, and day-to-day costs that take priority over long-term saving. But here's the good news: it's not too late to catch up on your retirement savings.
With some smart planning and consistent action, you can still make a huge difference to your financial future.
Know your target
Before you can catch up, you need to know what you're aiming for.
According to the Association of Superannuation Funds of Australia (ASFA), a single person needs about $595,000 in super to fund a comfortable retirement, while a couple needs around $690,000 combined.
If you're currently well below those figures, don't panic. Everyone's situation is different, and super is just one part of the puzzle. Your home, investments, and even part-time work can all play a role in supporting your lifestyle.
Supercharge your contributions
One of the fastest ways to catch up is by making extra contributions into your super.
You can do this through concessional contributions, which are before-tax contributions (like salary sacrifice) capped at $30,000 per year. These can also lower your taxable income.
In addition, there are non-concessional contributions, which are after-tax payments up to $120,000 per year (or $360,000 using the three-year bring-forward rule).
If you're over 55 and selling your home, you may also be eligible for the downsizer contribution, allowing you to tip up to $300,000 per person from the sale into super, even if you've reached your contribution caps.
And don't forget that small, regular contributions can also make a surprisingly large impact, especially with the power of compounding working in your favour.
Review your investments
It is also worth checking that your superannuation fund's investment option matches your time horizon and risk tolerance.
If you're 10 to 15 years away from retirement, you might still have enough time to benefit from a growth or balanced option, which can deliver stronger long-term returns than a conservative setting.
As you get closer to retirement, gradually shifting towards lower-risk investments can help protect your nest egg from market volatility.
Foolish takeaway
It is never too late to take control of your financial future. Whether you're 45 or 60, every dollar you contribute today can grow into several by the time you retire.
Catching up on retirement savings doesn't require drastic measures, just discipline, patience, and a plan. The key is to start now, not later.
