Whether you are at the helm of your own business, beginning your career or transitioning to retirement, superannuation is fundamental to your future.  Unfortunately, legislative changes and a groundswell of resources on retirement and how to manage your super have left many time poor investors feeling overwhelmed, resulting in lost opportunities to grow their nest egg.

One of the easiest ways to get your super back on track is with voluntary contributions, made before tax (concessional) or after tax (non-concessional).  Whilst contributions caps provide an uppermost limit on how much money you add, they are indexed by age so that the closer you are to retirement, the more you can contribute.

Voluntary contributions create an avenue for more people to grow their retirement savings whilst minimising tax, provided you keep track of your contributions and avoid exceeding the cap – otherwise you risk paying extra tax. The Bring Forward Rule (which allows you to combine two consecutive years’ worth of entitlements into one income year) can be useful if you plan to exceed the cap but again, accurate record keeping is essential.

As the table below demonstrates, concessional contribution caps increased on 1 July 2014:

Income Yr

Under 50

50-59 yrs

60+ yrs

2014/15

$30,000

$35,000

$35,000

2013/14

$25,000

$25,000

$35,000

*An exception to this increase is the temporarily higher cap of $35,000 currently available to individuals aged 59+ for the 2013/2014 financial year.

Non-concessional contributions caps will also increase* as detailed below:

Income Yr

Up to 75 yrs

Bring Forward Rule: to 64 yrs

No Bring Forward Rule: 65+ yrs

2014/15

$180,000

$540,000

$180,000

2013/14

$150,000

$450,000

$150,000

*Be mindful that if you trigger the Bring Forward Rule, the cap remains the same in the second year as it was in the year you triggered the Rule.

We each possess unique goals and aspirations for retirement, but its definition as a time to enjoy the fruits of our labour is universal.  Taking control of your superannuation puts you on track to achieve the retirement lifestyle you want and deserve.