Strategic superannuation: Why early planning is key to living a rich life

Retire early, enjoying your holiday home, travelling the world or taking your grandchildren to the zoo. These are all luxuries worth planning for.

While contributing to superannuation is compulsory, many Australians ‘set and forget’ their hard-earned savings and don’t take the opportunity to research and maximise their returns. In fact, as of March 2025, 15 million member accounts were held in MySuper products, according to APRA.

A MySuper fund is the default product your fund will use for you unless you choose a different option. While past performance is not an indicator for the future, history shows that selecting a balanced superannuation account option over a high-growth option can lead to missing out on hundreds of thousands of dollars over a lifetime.  

With the right planning, Super can be leveraged to create a tax-effective, long-term income stream that can help you live a rich and fulfilling life well beyond retirement.

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Superannuation as a long-term wealth engine

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Australia’s superannuation system incentivises retirement savings through concessional tax treatment and compounding growth. With employer contributions currently set at 12%, and voluntary contributions offering further tax advantages, Super remains one of the most powerful vehicles for building retirement capital.

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The case for early engagement

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Engaging with your Super early allows you to:

• Maximise compounding returns over time
• Adjust your asset allocation to match your risk profile and goals
• Take advantage of contribution strategies (e.g.salary sacrifice, maximising concessional caps)
• Prepare for potential legislative changes that may impact retirement income

Early planning also provides flexibility to alter your financial plan, whether that’s transitioning to a more aggressive growth strategy in your 40s or 50s, or consolidating funds to reduce fees and complexity.

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SMSFs for high-balance investors

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While every individual’s financial journey is different, a self-managed super fund (SMSF) can be a cost-effective and strategic alternative for Australians who have more than $250,000 in Super. There are even greater cost advantages if you have more than $500,000 in Super.

SMSFs offer full control over investment decisions, including direct property, equities, and alternative assets. While they require active management and compliance oversight, the potential for tailored portfolio construction and fee savings makes them attractive to high-net-worth individuals.

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Professional advice as a strategic advantage

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The complexity and ever-changing nature of superannuation legislation, tax implications, and retirement modelling can be a barrier to optimal outcomes. A qualified financial adviser, or Private Wealth Adviser as we call them at Ord Minnett, can:

• Help structure contributions and withdrawals tax-effectively
• Model retirement scenarios and income streams
• Advise on fund selection, insurance, and estate planning
• Assist with SMSF setup and compliance

Engaging an adviser isn’t just about avoiding mistakes. It’s about unlocking opportunities that may not be immediately visible.

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Valuable strategic insights

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The superannuation downsizer contribution is one strategy a financial adviser can inform and assist clients with, for example.

If you’re 55 or over, this is a valuable way to boost your Super as it allows up to $300,000 per person ($600,000 per couple) from the sale of your home to be contributed to Super tax-free, regardless of your age or total Super balance. When paired with non-concessional contributions of up to $120,000 per year (or $360,000 under the bring-forward rule), it becomes a powerful tool for superannuation planning.

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Free guide: Planning for a rich life from 40 to 100

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To support your journey, we’ve created a free downloadable guide: How to live a rich life from 40 to 100.

This resource offers practical strategies for aligning your financial decisions with your lifestyle goals, covering everything from mid-life wealth acceleration to legacy planning.

Whether you're in your 40s and building momentum, or in your 60s refining your retirement income strategy, this guide is designed to help you live richly on your terms.

To get your copy of the guide, click here.

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Start a conversation

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Are you ready to take control of your superannuation and financial future today?

Start a conversation with Ord Minnett to partner with one of our advisers and create a tailored financial plan for you and your family.

Ord Minnett has 15 offices across Australia, in addition to Hong Kong, managing more than $71 billion in Funds Under Advice for our clients.

To start a conversation, click here.

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