Yes, you can generally contribute $100,000 to your superannuation as a non-concessional (after-tax) contribution in a single financial year, provided you are under 75 and your total super balance is below certain thresholds. As of 1 July 2024, the annual non-concessional cap is $120,000, which is well above the $100,000 amount.
Non-concessional contributions (undeducted contributions)
Under 74: can contribute up to $100,000 per financial year.
There's a limit to how much extra you can contribute. The combined total of your employer and other pre-tax super contributions cannot be more than $30,000 per financial year. Any amount in excess of this will be subject to extra tax.
You can add money to your super as a once-off payment or as regular payments. But there's a limit, called a contribution cap. In 2025–26 financial year, you can make up to $120,000 of non-concessional contributions. Check the bring-forward rules for a higher limit.
If you retire at age 60 with $500,000, you could cover retirement expenses of $43,000 (increasing with inflation) until age 95 if you are single, and $52,000 until age 95 if you are a couple.
Choosing to give up or 'sacrifice' part of your before-tax salary and add it directly into your super account will not only help grow your super balance, but could also reduce your taxable income, and therefore the total taxes you pay.
In the organisation's super balance update, it found 2.5 per cent of the population have a super account of more than $1 million, as of June 2021. This represents 417,567 individuals, ASFA said, and is a 29 per cent increase from the 322,200 individuals who held over $1 million in June 2019.
Whether $400,000 is enough to retire at 65 depends largely on your lifestyle, location, and income needs. For some retirees with modest expenses, Social Security benefits and minimal debt, that nest egg could support a comfortable, if careful, retirement.
How to avoid paying higher-rate tax
The maximum you can contribute is $300,000 or the sale price of your home, whichever is less. You may make more than one contribution, but the total must not exceed this maximum.
Five tips to boost your super
If you decide you want to put money from an inheritance into your super, you usually can, by making a voluntary contribution or a spouse contribution. There are limits on how much you can contribute to your super per year, so make sure the amount you contribute to your super is within these limits.
Each financial year you can make before-tax (concessional) contributions up to your cap, which is currently $30,000. If you don't make before-tax contributions to your cap, you can carry forward this unused amount on a rolling basis for five years.
According to ASFA's 2023 Retirement Standard, a couple who retire with $100,000 between them at age 67 can live a modest lifestyle in retirement, assuming they're eligible to receive the full Age Pension.
There are limits on how much you can pay into your super fund each financial year without having to pay extra tax. These limits are called 'contribution caps'. If you go over these caps, you may need to pay extra tax.
How many Americans have $500,000 in retirement savings? Of the 54.3% of U.S. households that have any money in retirement accounts, only about 9.3% have $500,000 or more in retirement savings.
Orman warned against making this Social Security move
You are allowed to start your benefits as early as 62, but Orman does not think you should do that. As she explained, full retirement age (FRA) for most people is between the ages of 66 and 67, with the specifics depending on the year when you were born.
Currently the transfer balance cap is $2 million. After you retire any amounts over the cap need to be transferred into an accumulation account or withdrawn taken out as a lump sum. Earnings on any excess amount in your retirement account are taxed at 15%.
With that being said, what is a wealthy retirement? Well, according to ASFA, a comfortable retirement for a couple is around $75,000 per year and $53,000 for a single person. Given this, I would consider achieving a retirement income of, say, 30% over these amounts to be a wealthy retirement.
The bring-forward rule enables you to accelerate your super contributions by using up to three years' worth of non-concessional (after-tax) contributions caps in a single year. This means you could contribute up to three times the annual limit in one go, or spread your contribution out over two to three years.
“On the one hand, contributing more to your super may increase your final retirement income. On the other, making extra mortgage repayments can help you clear your debt sooner, increase your equity position and put you on the path to financial freedom.”
While it may be hard to find low-risk investment options with high returns, here are some options you may consider: