Finance Finance News Super tip: turbo charge your midlife investments

Super tip: turbo charge your midlife investments

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Only 53 per cent of Australian couples and 22 per cent of singles have enough money to retire on. So forget the Ferrari. This is what you should be putting money into instead.

The Association of Superannuation Funds in Australia (ASFA) Retirement Standard for a “comfortable” lifestyle is a widely used benchmark, with a minimum annual income of $57,665 for couples and $42,158 for single people.

So when you hit your middle age use these tips to make sure you become part of that 53 per cent.

Ditch the debt

Visions of you retirement no doubt include spending more time with you other half, but one relationship you can do without later in life is your debt. Write down a list of your debts from credit card to home loan, and start aggressively paying these down, starting with the smallest.

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Set goals

One of the best midlife crisis clichés is to get back in shape. As well as revamping your fitness, set some goals for your finances, too. Work out when you want to retire, how much you need to save or invest to get there and stick to it with Ironman like intensity. Use MoneySmart’s retirement calculator to calculate how much extra you’ll need to contribute.

Don’t forget the basics

There are a few basic retirement rules to follow, and once you’ve hit middle age you should have them down pat. Just in case, make sure you’ve considered consolidating your superannuation accounts, found any lost super, found a super fund with low fees and ensured all your income and life insurance is at the right level of cover for you right now.

Sacrifice your salary

Hitting your forties can become a cliche of midlife crisis.

Get in touch with your payroll department and start sacrificing part of your before-tax salary into your superannuation. You can contribute up to $30,000 per year taxed at 15 per cent rather than the much higher payroll tax (this limit includes your compulsory employer SG contributions, plus any salary sacrifice contributions).

If you’ve reached that $30k threshold, you can also contribute into your superannuation with after tax money from your take-home pay which will not attract any additional tax. Visit for more information on the contribution cap limits.

Go for growth

In your 40s you can consider investing in growth assets. If needed, contact your super fund and make sure your super is in the right kind of portfolio for you.

Get advice

It’s a good idea to talk to the experts as early as possible. Seek out an independent financial adviser for tailored advice, and make sure all connections are transparent. You can also call your industry superannuation fund and receive help and more information at no additional cost.

This content was proudly sponsored by CBUS: an Industry Super Fund.
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