Everyone knows that Super savings are for retirement!!

Then came COVID, as a result of the financial hardship caused by coronavirus many people have accessed their super savings for security and to make ends meet until your circumstances improve.

For those eligible you could withdraw up to $10,000 from your super fund before 30 June 2020 and the same again from 1 July to 31 December 2020.

VJC and many others have cautioned people to not withdraw from their super if they could avoid doing so, it’s important to consider:

  • other benefits and concessions that may be available to you to help make ends meet
  • withdrawing when the market has fallen crystallises your loss and leaves less money to recover
  • the impact on retirement savings, the loss of your compound returns in a low tax environment
  • the impact on other benefits in super, such as insurance, and
  • minimum account balance requirements.


So for those that did withdraw AND even those who did not, once this is over OR when you feel more secure in your income and future here are some great ways that you may be able to boost your retirement savings in the future to replenish your superannuation. Even small, regular contributions could be important in getting your superannuation savings back on track for retirement as every little bit helps.

Below is a summary of some of the key contribution strategies available to boost and rebuild your retirement savings.

  1. Sacrifice pre-tax salary to super – Boot your super balance and personal tax advantages
  2. Government co-contribution – Boost your super balance and receive a boost from the government of up to $500
  3. Make a spouse contribution and receive a tax-offset – Boost your spouse’s super balance and potentially receive a personal tax offset
  4. Make personal contributions and claim a tax deduction – Boot your super balance and personal tax advantages
  5. Make catch-up concessional contributions- Boot your super balance and personal tax advantages


See the below case study and the benefits of rebuilding your superannuation can have following a withdrawal under the temporary coronavirus condition of release.

WhoStrategiesSuper balance at retirement after withdrawal and rebuilding strategies, compared to the
projected balance
(if no withdrawal and no rebuilding strategies)[1]

Age 30

Salary: $45,000

Super balance (before withdrawal): $40,000

Super balance (after withdrawal): $20,000


Salary sacrifice:
$20 per weekPersonal contribution:
$1,000 per yearGovernment co-contribution: Amount varies, based on income limits and thresholds
+$77,195 better off

Age 40

Salary: $80,000

Super balance (before withdrawal): $120,000

Super balance (after withdrawal): $100,000

Salary sacrifice:
$30 per weekPersonal contribution:
$540 using tax refund from spouse contribution tax offset
+$16,264 better off

Age 50

Salary: $125,000

Super balance (before withdrawal): $220,000

Super balance (before withdrawal): $200,000


Salary sacrifice:
$100 per weekPersonal deductible contribution:
$1,000 per year using bonus received and any
tax refund due
+$80,508 better off

If you are interested in ways you can rebuild or boost your future retirement savings please give us a call to discuss your options.

Adrian Rae and Sianty – The VJC Wealth team



[1] Modelling estimates are based on a range of assumptions and individual outcomes may vary. Outcomes are displayed in today’s dollars,  Annual salary increases are in line with assumed rates of CPI, with employer contributions at the legislated minimums. Recommended contributions are unindexed. Government co-contributions are calculated annually based on entitlement resulting from salary and projected income thresholds. Investment returns are based on a return rate of 7.77%, and ignores fees for simplicity. Based on current tax and superannuation rules which are assumed to remain unchanged. Retirement age is 65 in all case studies.Important information: Any advice provided is of a general nature only. It does not take into account your objectives, financial situation or needs. Please seek personal advice before making a decision about a financial product. Information in this document is current as at 17 August 2020. While care has been taken in its preparation, no liability is accepted by VJC or its related entities, agents or employees for any loss arising from reliance on this document. Any opinions expressed constitute our views as at 17 August 2020. Case studies are for illustration purposes only. Any tax information provided is a guide only. It is not a substitute for specialised tax advice. SEEK personal tailored financial advice before making any decisions or actions


General Advice warning: the information in this article is general in nature, it is not advice specific to your needs. If you want to act upon the information in this article then you should seek advice from a qualified professional. VJC WM accepts no liability to any party for acting from this information unless they have sought advice in a formal engagement with VJC WM for this purpose.