As you enter your 40s, it's a great time to have a look at your superannuation balance and see if you're heading in the right direction.
With two decades at least up your sleeve there's plenty of time to make some changes and get your super on the right track, even if it's something you've not previously given a great deal of thought to.
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Australians' super balances generally looking pretty healthy
How do I know? By looking at the numbers.
It turns out that on average, Australians are ahead of where they need to be by age 40 to set themselves up for what the Association of Superannuation Funds of Australia (ASFA) deems a comfortable retirement.
The most recent figures for the 40-44 age bracket published by ASFA show that on average, males have a superannuation balance of $140,680, while females have $109, 209.
Compare that to new figures out this week from ASFA which indicate that for someone earning $100,000 per year, a 40 year old only needs $98,000 in their super to consider themselves on track for a comfortable retirement.
And the amount we need for a comfortable retirement is less than many of us think, with the figure sitting at $730,000 for a couple and $630,000 for a single.
This is despite 42% of people polled by ASFA believing they needed more than $1 million to retire comfortably.
How to play catch up
So what if you've seen these figures and thought, my superannuation could do with a top up?
There is one key strategy that you could look into before the end of the financial year, which has the potential to both reduce your taxable income and boost your superannuation savings.
It is possible to make concessional contributions into your superannuation, which include the pre-tax payments made by your employer.
Each year you are allowed to make concessional contributions of up to $30,000. Extra contributions made beyond what your employer contributes can serve to reduce your tax load, as contributions are taxed at 15%.
In terms of figuring out how much extra you can put into your super in this way, it is possible to keep track of your concessional contributions by using the Australian Taxation Office's online services.
Your superannuation fund might also be able to show you where you stand with regards to concessional contributions.
If you do put extra into your super and want it to be a concessional contribution, you need to also lodge a notice of intent to claim, which alerts your super fund that it is a concessional contribution and they will take the 15% tax out as necessary.
This is necessary as it is also possible to make non-concessional contributions of up to $130,000 per year.
It is also possible to make concessional contributions above the $30,000 cap, which is explained further in this article.
