While opinion may differ as to how much money you need for a ‘perfect’ retirement, most people believe that $1 million is more than enough. However, one of the country’s leading providers of retirement incomes begs to differ. “Assumptions and assertions that $500,000, or even $1 million, in super, in the current environment, will guarantee a comfortable retirement are suspect,” says Jeremy Cooper, superannuation industry veteran and chairman of retirement income at Challenger.

Cooper’s comments come after the government’s intergenerational report, which found that by 2055, Australians’ life expectancy would climb to 95.1 years for men and 96.6 for women. So, with the current return on a $1m super investment equivalent to the government pension, Australians might need to explore other ways to boost their retirement nest egg.

 Look at financial investments

 Now that the mining infrastructure and commodity price boom is over, Australia has entered what some are calling the “Great Transition.” You might think that few investment opportunities are on offer, but with a leveraged product like CFD trading, you can capitalise on stocks that should benefit from this economic evolution.

In a research note, US investment experts Morgan Stanley identified 10 well-placed stocks, including Domino’s Pizza and Treasury Wine Estates, which are chiefly concerned with the export of services and agribusiness, non-mining infrastructure, ongoing technology disruption, corporate expansion, and domestic services.

Even so, there are no guarantees that these stocks will provide profitability for investors, as the transition must stay on track in the face of various economic obstacles.

 Open a high interest savings account

If you are serious about increasing your retirement fund, then you can probably afford to deposit a small amount of your pay into a high interest savings account. Choose an option with no fees that pays interest on a monthly basis and the compound interest accumulation will grow significantly over time.

Be sure to add any extra funds such as tax returns and annual bonuses to your savings account as well. The short-term loss to your everyday income might be hard to swallow at first, but you will be rewarded for a long-term outlook with sizeable retirement savings.

Also, remember to open up a high interest savings account as soon as possible to benefit from a more advantageous future position.

 Sacrifice more salary to increase your superannuation

Along with, or instead of, a high interest savings account, you could always sacrifice more salary to boost your superannuation. If you work full-time, your employer will already be contributing 9.5 per cent, but you can ask for this to be increased by surrendering a greater portion of your income.

Again, you might need to live a more frugal lifestyle in the short-term, but those earning more than $37,000 should be able to sacrifice their salary with relative ease.

What’s more, all voluntary contributions to super are only taxed at 15 per cent. Therefore, your additional pay alongside your employer’s contribution will enable you to save tax and build up an impressive retirement fund.

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