How to Boost Your Super Returns

When it comes to saving for retirement, superannuation (also known as super) plays an important role. In Australia, employers are required to make mandatory contributions to your super fund by paying a percentage of your earnings (currently 11.5%) into your super fund, who will then continue investing the money until you retire. However, these mandatory contributions will typically not be enough to provide you with the comfortable lifestyle you desire during your retirement.

With this in mind, it is important that you plan ahead by seeing your super fund as a long-term investment that you can grow significantly over time by using the right strategies. Here are four ways to boost your super returns to set yourself up more comfortably for your retirement:

1. Pay more into your super fund.

The easiest and most straightforward way to grow your super is to pay more money into it. In addition to the mandatory contributions made by your employer, you can also make personal contributions. When you make voluntary additional payments into your super fund, you might also be eligible for a co-contribution from the government if your income is below a certain threshold, which can further boost your super balance.

You can also increase super contributions through salary sacrifice, so you are contributing more of your pre-tax income into your super. This can help reduce your taxable income while also boosting your super balance.

2. Review your investment strategy.

Most superannuation funds offer a range of investment options. Usually, these will come with varying levels of risk and return. Examples could be conservative (low-risk, low-return) and aggressive (high-risk, high-return). The investment option that you choose will influence how your balance grows over time.

If you’re young and have many years left before retirement, you may prefer to opt for a growth or high-growth option that provides higher returns over the long term, bearing in mind that this option can come with more short-term volatility. On the other hand, if you are nearing retirement age, you may prefer a lower-risk option with less volatility. This option will protect your super from market volatility, especially as you get closer to the age where you’ll need to draw from it.It is important to regularly review your fund’s performance and investment strategy (for example, conservative, balanced, or growth) to ensure it aligns with your retirement goals.

3. Take advantage of government co-contributions.

When you make personal contributions to your super fund, you may be able to take advantage of government co-contributions. The government offers co-contributions to low- to middle-income earners who make additional contributions to their super fund, which can be a great way to boost your super balance.

To be able to receive the co-contribution, your income must be below a certain threshold. For 2025-2026, a maximum co-contribution of $500 is available to people earning less than $47,488 pre-tax when they make a post-tax contribution of $1,000 to their super fund. If you earn more than $47,488, you may still be eligible for a partial co-contribution, although the amount gradually decreases as your income approaches $62,488. Once you earn more than $62,488, you will no longer be eligible to receive a government co-contribution, so this is something worth keeping in mind when thinking about the best way to grow your super.

4. Look for a low-fee fund.

There are a range of different fees that may be charged by superfunds. Some of the fees you may come across include administration fees, investment fees, and performance-based fees.

Though these fees may seem small, they can often add up over time, so it’s important that you check the fee structure of your super fund and compare different super funds to ensure you are not being charged excessive fees. There are many super funds that charge quite competitive fees, which can make for a more cost-effective option in the long-term, which is why it is important that you shop around – especially if your current super fund charges high fees.

If you haven’t already, you might want to consolidate your super into one account. A lot of people have multiple super accounts, which can mean you end up paying more in fees, so consolidating your super all into the one account can help reduce fees.

It is also worth noting that some funds may also charge insurance premiums on top of these other fees. Many super funds offer insurance as part of their membership, but whilst this may seem like a convenient option, you might find that the premiums work out to be more expensive than if you were to take out your own insurance policy separately from your super. Having these premiums deducted may also mean your super balance gets drained more quickly than it would otherwise. Review the insurance included with your super and adjust your coverage necessary to avoid unnecessary costs. Also, consider alternatives outside your super fund that might offer better coverage at a lower cost and obtaining sound financial advice.

As you can see, there are a number of different ways in which you can boost your super balance. Whichever approach you decide to take, ensure you continue regularly reviewing and tracking your superannuation is essential to ensure your super is working hard for you. Regularly check your balance, assess your superannuation’s performance, and make adjustments as necessary. This will set you up for financial success in the long run and ensure you have a comfortable retirement.

_{This article contains general information about wealth protection. It does not consider an individual’s personal circumstances and therefore before relying on any content, you should ensure that you have obtained individual personal advice from a licenced Financial Adviser.}

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