Strategies to Get Your Super Back on Track

Corona pandemic brought total lockdown that affected jobs and businesses in Australia. The effects of the pandemic took a toll on many of Australia's super balances.

Reports by APRA indicate that over 3 million Australians utilized COVID-19's early release of the super program. Averagely, people withdrew around $8,000. 25% of these withdrawals brought about super balances of less than $1000.

The decision to spend the super balance still affects the Australians that think they should never touch their super balance. Nonetheless, Bendigo financial planning policies can help you retrieve your super back.

Consequences of releasing the super scheme early

Many Australians are experiencing difficulties contributing back to the super balance because the withdrawal of super contributions brought about a loss in employees' paying potential. Such losses include reduced tax contributions to the super fund, lower annual salary increases, and lower levels of super benefits from employer contributions.

Also, according to Bendigo financial planning, withdrawing the super balances left massive holes in the majority of the Australian's future retirement savings.

Strategies for getting your super back on track

The time for inspecting your super balance and getting it back on track is now. Besides, withdrawing your super, job loss and reduced working hours may affect your super savings negatively. In addition, the stock market downturns might be ruining your savings further. But here are strategies for returning on rack:

Putting aside extra money on super

Start by assessing your budget and spending behaviors to get extra cash within your budget and improve your super savings.

For effective Bendigo financial planning, better saving is putting money aside at the beginning of your saving period. It is essential to spend the remaining money instead of regulating your expenditure and saving the remaining cash.

You do not need to contribute a single lump sum

It is not a must your deposit your savings in a single lump sum. Instead, you can contribute in small amounts throughout the year. Your super fund will give your guidelines on contributing. Most funds give you options such as BPAY®, direct debit or through your bank account.

Super co-contribution from the government

The government will likely contribute to your super fund if you are a low or middle-income earner. The government is willing to contribute a maximum of $500. You can find out from ATO whether you meet the standards for super co-contribution.