Chapter 1: Getting retirement ready 

Hi, I'm Jeff Wallens, Senior Education Specialist at CBUS. 

I've spent over 25 years in super helping people make sense of what they've got and what they can do with it. This is 'Straight Talk'. 

We break down the parts of super that matter in plain language so you know what to do next. One of the biggest financial mistakes people make in their 50s is a simple one. 

They don't start planning for life after work. A lot of Australians put it off. 

Some feel like they don't have enough in super, some don't know where to begin, others feel like they need everything lined up before they take the first step. And that's understandable. 

But here's the reality. You don't need a perfect plan to get moving. You just need to start somewhere and build from there. 

In this video, we'll look at a few key questions to help you think about your next steps and show you where CBUS can step in to support you along the way. 

Chapter 2: Where are you at right now? 

Question 1. Where are you at right now? Start with where things stand today. How much do you have in super? What other investments do you have alongside it? 

Do you have any debt that's still hanging around? 

This gives you a clear starting point and helps you see the full picture, not just one piece of it. 

If the Age Pension will be a part of your income later on, it helps to understand how your assets and income could affect your eligibility, because what you do now can shape what you're entitled to down the track. 

A good place to start is dealing with debt. 

High interest debt like credit cards, car loans can eat into your future savings faster than you might expect, so reducing or clearing these can make a real difference over time. 

If possible, paying off your home loan before you retire can also be valuable. 

Your family home generally is not counted in the Age Pension assets test, and having equity can give you more flexibility later on if your circumstances change. 

In some situations, that equity can open up options. 

For example, you may be able to sell your home and contribute up to $300,000 per person into your super. 

This is called the Downsizer contribution provision, and it's available from age 55, depending on your circumstances. Next, take a closer look at your super. 

Is your employer paying the correct super guarantee contributions? Are you adding extra where it makes sense for your situation and your goals? 

If your balance was below $500,000 at the end of the last financial year, you may be able to contribute more by using unused caps from previous years. 

This is known as carry-forward concessional contributions. 

It allows you to catch up on contributions you didn't use in earlier years, which can help give you a super a meaningful boost. 

Chapter 3: What will your income look like? 

Question 2: What will your income look like? When you stop working, where will your income come from?  

For most people, it's a mix. 

You're super, the Age Pension and sometimes other savings or investments all working together. 

Our Retirement Income calculator on the CBUS website can help you estimate whether you're on track. You can also show how different decisions today could shape your income later. 

Understanding the Age Pension. For many of us, the Age Pension does a lot of the heavy lifting in retirement. 

You can generally apply 13 weeks before you turn 67, as long as you meet the residency requirements. 

How much you receive depends on your assets and your income, which are assessed under Centrelink's Assets and Income tests. 

If you have a younger spouse, their accumulation super account is usually not counted in the Age Pension while they're still under Age Pension age. 

We cover this in more detail in our video 'Super and the Age Pension' as part of this series. You can also explore the Age Pension section on the CBUS website. 

Chapter 4: What will you need to spend? 

Question 3. What will you need to spend? Now think about your day-to-day costs. What will your income actually need to cover? 

Everyone's situation is different, but a good place to start is to think about what you need to spend and what you want to spend. 

That could include everyday costs as well as things like travel, hobbies or helping family. 

It also helps to compare your expectations to general benchmarks like the Association of Super Funds of Australia's Retirement Standard which outlines what a modest or comfortable lifestyle costs. 

From there, you can build a clearer picture of what your retirement looks like and tools like the CBUS Budget Planner available on our website help you map this out. 

Does your investment strategy match your plan? 

Another common mistake is not matching your investment approach to your time frame and risk appetite. 

In your 50s, you could still be investing for another 15 or 20 years. 

And even in retirement, your super often needs to keep growing to stay ahead of the rising cost of living. 

Take a look at how your super is invested and whether it lines up with your needs and goals. Different investment options can lead to very different outcomes over time. 

Alternatively, if you're planning to withdraw your super soon, it's worth checking how it's invested. A lower level of risk could better match where you're at. 

If you're not sure where to start, take a look at the Investment Basics section on the CBUS website. 

It comes down to timing, when you'll need your money and how you plan to use it. 

Consolidating your super. If you've got more than one super account, it might be worth bringing them together. 

Consolidating your accounts can make things easier to manage and give you a clearer view of your overall balance. 

It may also reduce the amount you're paying in fees and insurance premiums across multiple accounts, which can add up over time. 

To combine your super, you can log into your CBUS online account, select 'Consolidate My Super' and follow the steps. 

Chapter 5: Don’t miss the tax benefits 

One area people often overlook is how super is taxed and missing this can cost you over time. Super isn't just a place to save, it's also a tax structure. 

In retirement, income from super and investment earnings can be tax-free. Depending on your circumstances. 

This can make a meaningful difference over time, particularly when combined with other sources of income. 

Chapter 6: What's next 

So what's next? Let's get moving. Head to the CBUS website and start building your plan. 

You'll find tools and calculators to check your income, plan your spending, and explore your options in one place. 

If you'd rather learn by listening, we also run seminars and webinars that go through these topics step by step. 

They're practical, easy to follow, and included as part of your membership. 

You can also tune into the CBUS Super Shift podcast for conversations about super and retirement from planning to the Age Pension. 

If you've got questions or just want to talk it through, call the CBUS Advice team. 

They'll take the time to understand where you're at, explain your options, and help you work out what to do next. 

Chapter 1: Contributions 

Hi, I'm Jeff Wallens, Senior Education Specialist at CBUS. 

I've spent over 25 years in super, helping people make sense of what they've got and what they can do with it. This is 'Straight Talk'. 

We break down the parts of super that matter in plain language so you know what to do next. 

Super isn't something a lot of us think about every day, but over time the choices you make help shape what comes later. 

It provides a tax-smart way to build your best retirement. 

This video shows you a few common ways you can boost your super and potentially save on tax. 

A key part of this is how tax is applied both to your own contributions and your partner's. 

We'll cover before and after-tax contributions, including salary sacrifice, spouse contributions, and downsizer contributions. 

We'll explain how each one works and help you understand whether any of these options could be useful for you. 

Chapter 2: Super and tax: Why it matters 

One of the key benefits of investing in super are the tax concessions, otherwise known as tax breaks or benefits. 

Lower tax can apply not just when you make before tax contributions, but also to the investment returns you might earn on your super. 

Any investment returns on your super are taxed at a maximum of 15%. 

Outside of super, investment returns are taxed at your marginal tax rate, which depending on what you earn could be as high as 45% plus the Medicare levy. 

Over time through the lower tax rate of 15%, super could help you grow your wealth more tax effectively than investing outside of super, helping you build your best retirement more quickly. 

Chapter 3: Concessional contributions and salary sacrifice 

Salary sacrifice is one way to add to your super from your before-tax income. 

It means putting a bit less in your pocket today from each pay packet while boosting your super and reducing your taxable income at the same time. 

The earlier before retirement you do this, the more time your money has to compound. That's when your investment returns start earning returns. 

Over time you can make a real difference to what you have when you've clocked off for good. These pre-tax super contributions are taxed at 15% when they go into super. 

For most of us, that's lower than our marginal tax rate based on how much we earn, which can be as high as 45% plus the Medicare levy. 

When your income and super contributions go over $250,000, those contributions are taxed at a higher rate of 30%. 

Chapter 4: Before-tax contributions 

The government sets a yearly limit on how much you can add to your super through what's called concessional or before-tax contributions. 

They're called concessional because they're not taxed at your marginal tax rate, but the lower tax rate of 15%. 

A little like a concession card that gives you a discount. This is the current concessional contributions cap. 

This cap includes your employer's super guarantee contributions, minimum 12%, any salary sacrifice contributions you make, and any after-tax contributions you later claim as a tax deduction. 

If your total super balance was under $500,000 at the end of the last financial year, there's some extra flexibility. 

This is called the carry-forward arrangement. 

For example, if you didn't use all your concessional caps in previous years, you may be able to use those unused cap amounts now. 

This can let you add more than the usual annual limit by using caps from up to the past five years. 

If you can do it, it can be a great way to boost your super and pay less income tax at the same time. 

Chapter 5: After-tax contributions 

Any money you add to super from your bank account is known as a non-concessional or after-tax contribution. This means you've already paid tax on it. 

That money can come from a range of sources such as savings, an inheritance, a redundancy, selling shares, or supporting your partner's super. 

There's a yearly cap on how much you can add through non-concessional contributions. This cap is set at four times the concessional contributions cap. 

Based on the current concessional cap of $30,000, that means the non-concessional cap is $120,000 per year. 

If you're eligible, you may be able to contribute more using what's known as the bring-forward arrangement. This lets you use up to three years' worth of the cap at once. 

Using today's cap, that could allow significantly more contributions in a single year. 

One important thing to know is that the bring-forward arrangement can't be used after you turn 75. 

Chapter 6: Claiming a deduction on after-tax contributions 

If you're self-employed or a sole trader and don't have an employer making contributions for you, there are still ways to access tax benefits. 

Similarly, if you haven't been salary sacrificing throughout the financial year, there may still be an opportunity for you. 

You can contribute your own after-tax money to super, then claim the tax deduction. In fact, anyone can do this. 

It's another great way to boost your super and reduce tax, which is what I'd call a win-win. 

These contributions count towards your concessional cap, so it's worth keeping a close eye on where you sit with the cap. 

You can check how much you've contributed this financial year through the CBUS app, the CBUS member portal, or your myGov account. 

Chapter 7: Contributing to your spouse's super 

There's a couple of ways you can help boost your spouse's super. 

One option is to transfer some of the before-tax contributions you made last year into your spouse's super account this year. 

This can be a handy way to lower your super balance, which may matter if you're close to the $500,000 limit for the carry-forward contributions. 

The second option is adding money directly to their super from your bank account. This is treated as a non-concessional contribution and the usual caps apply. 

Both options can be useful depending on where you're at and what you're trying to achieve. 

Chapter 8: Downsizer contributions 

Selling your primary residence at age 55 or over can give you the option to make a downsizer contribution to super. 

This is when you sell your home and move some of the sale proceeds into super. 

You can contribute up to $300,000 per person as long as it's done within 90 days of selling your house. 

For couples, that can mean up to $600,000 being added to super. Downsizer contributions sit outside the usual contribution caps. 

They don't count towards either concessional or non-concessional limits, which means they can be added on top of other contributions you may already be making. 

Chapter 9: What's next? 

If you want to see how any of these options might fit your situation, there's a few ways to take the next step. 

You can learn more about all of these contributions on the CBUS website, which has more explanations and resources on how these work and how you can start to contribute more. 

Or if you'd rather talk it through, the CBUS Advice team can help you make sense of your options with different levels of guidance depending on what you need. 

There are also seminars, webinars where our Education team breaks it down in plain language and runs through practical examples. 

These sessions are included as part of your membership. 

Also, the CBUS Super Shift podcast is another great resource to hear how super can work for you. 

And if you want to explore the numbers, CBUS also provides a contributions calculator to see the possible benefits of salary sacrifice and how it can impact your take-home pay and super over time.