THE ABILITY to access superannuation through the Federal Government’s COVID-19 early release super scheme may have just been the lifeline some Tasmanians needed.

However, the longterm loss of interest earned on super could potentially have a large impact on the amount of super available at retirement. For a thirty-year-old, taking $10,000 of super now could potentially mean around $50,000 less in retirement.

he most immediate threats of COVID-19, there will be many people looking at the longterm effect of their early super withdrawals and what they may be able to do about it.

According to the ASFA Retirement Standard, a single person will need a lump sum of $545,000 in savings to fund either a comfortable or modest standard of living at the retirement age of 65,

The MoneySmart website shows how to calculate super balance at retirement, based on current employment and contributions (www.moneysmart. gov.au).

One of the most practical steps is budget management. COVID-19 has meant a big cut in spending for many people. As incomes and lifestyles recover, keeping some of those saving measures to put towards extra super savings.

There are also a variety of direct ways to make additional contributions to super on top of what an employer contributes.

An individual can make concessional or before-tax contributions in the form of salary sacrifice. You can organise your employer to pay this out of your before-tax income.

Tax-deductible personal contributions are payments that you can make with your aftertax dollars and then claim a deduction at tax time.

Non-concessional, after-tax contributions are payments you make to your super account using after-tax dollars and don’t claim a tax deduction on.

If your partner or spouse is in a better position financially than you and if you meet the eligibility criteria of earning less than $40,000 a year, they may be able to help you rebuild your super through additional spouse contributions.

With secure employment and a low-to-middle income, you can make your after-tax contribution to super and may be eligible for the government to match that up to $500.

The government also offers another type of super assistance in the form of low-income super tax offset (LISTO). If you earn $37,000 or less a year and receive concessional super contributions, the government may refund the tax you pay on those contributions back into your super account up to a maximum of $500 a year.

Another way to ensure you’re getting the most out of your super and avoiding any unnecessary fees is to find and combine your super accounts.

COVID-19 has had a once in a generation impact on our economy, greatly disrupting many Tasmanians’ immediate and long-term financial goals.

In times of such uncertainty it’s difficult to know what the future may bring but by taking measures to restore your super balance now, you’ll have the best chance of reaching your retirement goals.

This information has been taken from material provided by Tasplan. Tasmanian based Tasplan is a profit-for-members super fund which has grown to be the state’s largest and only locally based super provider, with some $9.4 billion under management and over 126,000 members which makes up around 50 per cent of the Tasmanian workforce.