Once you reach your 50s, it won’t be long until you finally hit the retirement lane. This will give you the realisation that you will not be working forever. So, you have to make sure that you have already secured yourself financially before you even hit the finish line.
Best Superannuation Tips for Workers Aged 50 and Above
The New Daily, an online news publication in Australia, provides some effective superannuation tips to prepare you for your retirement when you are already 50 years old or nearing 60:
1. Maximise Your Contributions
When you are already in your 50s, do not just rely on the contribution of your employer. Based on the source, those who make voluntary contributions are more comfortable during retirement than those who didn’t.
Try to pour in funds to the extent that you can afford by putting in your surplus income to your super. This way, you will also be able to save on taxes. Note that super contributions are only taxed 15 percent. It is in contrast to the levies on income which depends on the bracket you belong to. Top level income earners get taxed by up to 46.5 percent per annum the report stated.
On top of these, the government provides tax incentives too once you turn 55, in preparation to your retirement. So, for example, if you decide to move your super funds to an allocated pension account, you will get your earnings without any taxes when the stream starts.
2. Settle Your Debts
Having so many debts when you retire will greatly compromise your pension. Make sure that you have settled them all or at least reduced them to a minimum before retirement. Gradually allot some of your extra income to pay off any outstanding debts.
3. Seek Expert Advise
Look for a good financial planner who will give you reliable superannuation tips or expert advise on how you can reach your goals and attain your objectives. Be sure to be honest with them about your financial standing so they can come up with an ideal plan for you.
Do not rely on the advise of one expert alone. Seek a second opinion or recommendations from experts in other renowned super institutions so you can come up with a good list of alternatives. Be sure to prepare backup funds as well for emergencies.
4. Be More Productive at Work
Invest more time at work to boost the income that you can put into your voluntary super contributions. If possible, take part-time jobs in addition to your main line of work. Remember that once you reach 50, your working years become more limited as it starts the countdown to the retirement phase. It is also the time wherein your health starts deteriorating. Therefore, maximise your productivity while you still can.