If you’re in your 40s or 50s and thinking ahead to retirement, you might be asking:“Is It Worth Making Extra Super Contributions Before 60? “The short answer is yes it’s one of the smartest financial moves you can make.
Adding even a little more to your super before you turn 60 can make a big difference to your retirement lifestyle, reduce tax, and give you more freedom when you stop working.
Let’s explore why it matters, how it works, and the best ways to do it.
Why Making Extra Super Contributions Before 60 Is Worth It
Your superannuation isn’t just a savings account it’s a long-term investment designed to grow with you.
By contributing more while you’re still working, you give your money more time to compound, meaning your earnings generate even more earnings.
Even small contributions now can grow into thousands later.
For example:
If you add an extra $100 a fortnight from age 50, you could have $40,000–$50,000 more by 60 (depending on your fund’s returns).
That’s money that could help you:
- Retire earlier
- Reduce reliance on the Age Pension
- Cover medical or travel costs
- Enjoy a more comfortable lifestyle
Is It Worth Making Extra Super Contributions Before 60 for Tax Benefits?
Absolutely one of the biggest reasons to contribute extra before 60 is the tax advantage.
There are two main ways to make extra contributions:
1. Concessional Contributions (Before-Tax)
These include employer contributions, salary sacrifice, and any personal contributions you claim as a tax deduction.They’re taxed at 15% inside your super fund, which is often much lower than your personal income tax rate (which could be 30% or higher).
Example:
If you earn $90,000 and salary-sacrifice $10,000 into super, you’ll pay $1,500 tax inside super instead of $3,200+ in income tax saving around $1,700 while growing your super faster.
Concessional Cap 2025: $30,000 per year
2. Non-Concessional Contributions (After-Tax)
These are extra payments made from your take-home pay or savings. You’ve already paid tax on this money, so it goes into super tax-free, and your future earnings inside super are taxed at a low 15%.
You can contribute up to $120,000 per year, or use the bring-forward rule to add up to $300,000 over three years.This strategy is especially powerful if you’ve sold a property, received an inheritance, or simply want to boost your balance quickly before you retire.
Is It Worth Making Extra Super Contributions Before 60 for Growth Potential?
Yes the earlier you add to your super, the more time it has to grow.Super funds invest your money in diversified portfolios that include shares, property, and bonds. Over time, this can deliver average annual returns of 6–8%, depending on your fund and investment choice.
When you add extra money, those funds generate more investment earnings and those earnings compound year after year.
It’s like giving your future self a pay rise.
Example:
A $20,000 lump-sum contribution at age 50 could grow to $36,000–$40,000 by age 60, assuming modest returns.
That’s the power of compound growth.
Is It Worth Making Extra Super Contributions Before 60 If I Have Other Debts?
It depends on your situation. If you have high-interest debt (like credit cards or personal loans), it’s usually better to pay those off first before making large super contributions.
However, if your only debt is a low-interest home loan and you’re comfortable financially, contributing extra to super can be a very effective long-term strategy.
You’ll benefit from:
- Lower tax
- Steady investment returns
- A growing balance you can access from age 60 tax-free
Government and Spouse Incentives
If you’re eligible, the government may help boost your super, too.
- Government Co-Contribution:
If your income is under $58,445 and you make after-tax contributions, the government could add up to $500 to your super. - Spouse Contribution Offset:
If your partner earns under $37,000, contributing up to $3,000 to their super could give you a $540 tax offset while helping both of you build for retirement.
These incentives can make extra contributions before 60 even more worthwhile.
Common Mistakes to Avoid
If you’re increasing your contributions, avoid these common pitfalls:
- Exceeding annual caps (you may pay extra tax if you go over)
- Forgetting to submit a Notice of Intent to Claim Deduction (for personal contributions)
- Choosing overly conservative investments too early
- Neglecting to review fund performance or fees
Staying informed helps ensure every dollar you add works as hard as possible.
FAQs:
1. Is it really worth adding more to my super before 60?
Yes, it helps your balance grow faster, reduces tax, and gives you more flexibility when you retire. Even small contributions compound over time.
2. How much extra should I contribute?
It depends on your income, expenses, and retirement goals. Many people aim to contribute 10–15% of income (including employer super).
3. Is there a limit to how much I can contribute?
Yes. Concessional (before-tax) cap is $30,000 per year; non-concessional (after-tax) cap is $120,000 per year.
4. Can I access these contributions before 60?
Generally no your super is preserved until you reach age 60 and meet a condition of release such as retirement.
5. Should I get advice before contributing more?
Yes. A financial adviser can help you choose the right strategy and ensure you don’t exceed contribution limits or miss tax benefits.
How Can I Increase My Super Before Retirement?
How Superannuation Works When You Retire
So, is it worth making extra super contributions before 60?
Yes without question.The years before 60 are your best window to grow your balance, reduce tax, and set yourself up for financial freedom in retirement.
Every extra dollar you contribute now works harder for your future.And with the right mix of strategy and timing, your super could deliver the lifestyle you’ve always imagined.At Wealthlab, we help Australians optimise their super strategies and plan confidently for retirement.
Book a free consultation today to discover how to boost your super before 60 and retire stronger.