October 10, 2026 — 4:00am
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People’s financial mindset generally shifts suddenly after they turn 50 – they move from ignoring their super to being, well, super engaged with it.
Perhaps it’s the imminent, or at least more imminent, prospect of getting their mitts on the money. Or, maybe, once they start looking into the future from 50 onwards, they realise they may need more dollars.
A budget for a comfortable retirement is said to be $56,166 per year for a single person and $78,998 for a couple.Bethany Rae
The best point to check where you stand is the amazing calculator at moneysmart.gov.au. This can right now reliably tell you where your fund is on track to finish at by the time you retire. Jump on the site. I’ll wait.
By way of example, let’s say you are 50 and today have $250,000 dollars in your super account. You are on the average full-time salary of $108,350 a year and make no extra contributions. Under the MoneySmart assumptions, you’ll end up with a super balance of $443,027 at age 60.
Super remains the best savings and tax play in town.
Now, while that sounds decent, it probably falls short of a comfortable retirement.
The Association of Superannuation Funds of Australia calculates this requires a lump sum at retirement, assuming you own your own home and drawdown all of your super over your life span, of $630,000 for a single and $730,000 for a couple.
However, that’s the lump sum required if you work all the way to 67. If you want to retire at 60, you’ll need a whole load more.
So how much does this assume you need to live on each year? A budget for a comfortable retirement is said to be $56,166 per year for a single person and $78,998 for a couple. Does that sound feasible for you? Either way, it’s a good starting point to determine if you are going to need more money.
If you need more super, here are five ways to make it work for you:
Super booster 1: Salary sacrifice
The Money Smart super calculator beautifully demonstrates just how powerful a before-tax salary sacrifice into super can be. In our example, we’ll assume that you sacrifice 3 per cent of your salary to bring your total super contribution, with the 12 per cent employer super guarantee, to 15 per cent.
Even that relatively tiny amount boosts your outcome at age 60 by $33,362 to $476,389. This is far more than you might have received in the hand, as super contributions only attract tax at 15 per cent as opposed to your marginal tax rate, which might be as high as 45 per cent.
Super booster 2: Snare the co-contribution
This tax year (2026-27), there’s an opportunity to boost super for people who earn less than $64,293.
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If they pay in $1000 after tax into their super fund, the government will top it up by 50 per cent. The full top up is payable on income up to $49,293, and it phases down to $0 once it reaches $64,293. The top-up of $500 free money is not to be sneezed out. Particularly when you may be able to do it year after year.
If you are partnered and one person earns a low-ish salary, there is another super technique as well.
Super booster 3: Make a spouse contribution
This time, you need to pay in $3000 after tax. This comes from the higher earner and goes to the lower earner.
The qualifying income is $37,000, fading out at $40,000.
But the reward is significant at an up-to $540 tax offset – a tax offset is a straight-up discount off your tax bill so represents a big saving for the contributor.
And the low-earning spouse sees their super fund dramatically swell. A spouse contribution is particularly great when one partner has caring duties. With this one, the lower earner does not have to be earning income at all.
Super booster 4: Make an after-tax contribution
The chances of you coming into money might seem slim but after-tax contributions are particularly relevant for people looking to sell assets, possibly before the new capital gains tax rules apply on July 1, 2027.
Not only does putting the proceeds into super push your balance higher, it also potentially cuts capital gains tax if you claim it as a personal deductible contribution.
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What’s more, provided your fund balance was under $500,000 at the end of the previous tax year, you can mop up any of the past five years of unused before-tax (called concessional) contribution allowances.
That might mean you can squirrel away then deduct for tax purposes as much as $92,500, the total of the allowances going back five years. Note that this figure includes your employer’s super guarantee contributions and any salary sacrificed ones too.
And once you hit 55, there’s another big opportunity.
Super boosted 5: Shift and shelter $300,000
In a bid to free up housing supply, you can pay in $300,000 of the proceeds from downsizing your home. The only proviso is you must have owned it for 10 years.
What’s more, both partners in a relationship could do it, doubling the possible amount you can shelter to $600,000. There is no upper age limit either.
Super remains the best savings and tax play in town. These last-minute steps to maximise it, matter.
Nicole Pedersen-McKinnon is author of How to Get Mortgage-Free Like Me, available at nicolessmartmoney.com. Follow her on Facebook, X and Instagram.
Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.
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