HINK of your super account as a growing plant. It just makes sense that the more you feed and water it, the bigger and stronger it will grow.
That is particularly the case when it comes to a major life change such as moving from full-time to part-time work or even starting part-time work again after you have retired.
If you are over 18 and earn more than $450 a month, your employer must pay superannuation for you at a rate of 9.5 per cent of your ordinary time earnings.
If you are downgrading from full- to parttime work, that will probably mean that your super contributions will reduce but they can be held steady through strategies such as salary sacrifice and even after tax contributions.
Another option as you get older is to take advantage of transition to retirement arrangements. In this situation, a retirement income account is opened alongside your regular super account. These two accounts work together and may reduce the overall tax you pay while helping grow your super savings.
Since you're still working, your super account continues to receive contributions.
At the same time you'll receive regular payments from your retirement income account, paid directly to your bank account.
You can use this strategy to either work less or save more.