Topping up your super can boost your retirement nest egg. But is there a right time for voluntary contributions?

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Boosting your super can give you a better retirement nest egg, but given how many other priorities are fighting for your cash, how do you figure out when it's time to put more into super?

According to ASIC's Moneysmart, a 30-year-old chucking in an extra twenty bucks a week could be 50 grand better off in retirement – and there can be tax savings from making extra super contributions, too.

But finding the cash to stash away isn't a breeze, especially considering the current economic climate, and adding more to super isn't always a wise decision.

We had a yarn with two gurus to figure out when this tactic makes sense and provide you with the lowdown on the pros and cons.

First, cover the basics

Kate McCallum is a financial advisor and co-author of The Joy of Money.

If you're in your twenties, thirties, or forties, you're probably to deal with major financial commitments, Ms McCallum says. This might include paying rent, setting aside cash for a house deposit, repaying a mortgage, covering education fees, and making ends meet on everyday living expenses.

If you've got consumer debts like credit cards or personal loans, getting on top of those should be your top priority before adding any more to your super.

That's because the interest rates on these products are as high as you'll find anywhere else and paying them off gives a guaranteed return.

savings that should be enough to cover at least three months of living expenses.

Having this system in place can give you peace of mind, as well as potentially stop you from having to get into debt because of unexpected expenses.

It's best to get advice before you act on any of this, and don't forget that you need to have enough to live on in the short term, as well as save for retirement.

Ms McCallum reckons it's a good idea to take a step back and assess your overall financial situation and goals beforehand if you're thinking of topping up your super.

It's crucial to note that most people can't access their super until they turn 55 to 60, depending on their birth year.

So, if you're 30, and you put some of your money into your super fund, you could end up locking it away for 30 years or more.

Due to these reasons, Ms McCallum suggests voluntary super contributions are generally more practical for people over 45, who can access their funds sooner.

Instead, she reckons younger people should focus on other priorities and rely on compulsory super contributions from employers.

"If you're in your 20s or 30s, or maybe even your early 40s … it's worth letting the super guarantee do the rest and freeing up extra cash for other things so you've got more wiggle room," she reckons.

instead.

If you've got a mortgage, you might consider stashing the cash in an offset or redraw account instead.

How making extra super contributions can put you ahead on tax time

You can make a "concessional contribution" to your super account by entering a salary sacrificing agreement with your employer or transferring a lump sum from your cheque account to your super fund and claiming a tax deduction for that amount.

The strategy's appeal lies in the fact that these payments are only subject to a 15 per cent tax rate, which is significantly lower than the 30 per cent paid by someone on an average income in Australia.

Because of this, as your income increases, it's more appealing to increase your superannuation contributions, as the tax advantage will be greater.

Will you continue to contribute to your superannuation when you're taking time off from work?

If you're taking a break from work because you've had a kid or are looking after someone else, you might be fretting about your superannuation balance and wondering if you should boost it.

While you can still contribute to your super during these periods, you'll probably earn less, which might cut down the potential tax benefits from making higher contributions.

claim a rebate for tax of up to AUD540.

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How saving into your Super can help you save for your first home

While most people can't access their super until they're in their 60s, there are some exemptions.

The First Home Super Saver (FHSS) scheme lets Aussie first-home buyers take out up to $50,000 of voluntary contributions, plus any money earned on those contributions, to put towards a deposit.

Including owing too much money, which is one reason it hasn't been popular. But independent financial advisor Jacie Taylor says it can be a helpful strategy for people who are saving for a deposit.

"It's a bloody ripper of a scheme that not enough people know about," Ms Taylor says.

Don't forget, there are tax penalties involved if you change your mind and don't end up buying a property after you've withdrawn the scheme funds.

You might be able to enhance your superannuation savings without making any additional payments.

Even if you can't make extra deposits, there are other ways to help your super keep working for you.

Ms Taylor reckons it's a good idea to have a squiz at where your super is invested and the fees you're getting charged.

If you're under 30, Ms Taylor reckons you might want to consider chucking your super into higher-growth investment options, because they usually deliver higher returns over the long haul.

It makes a fair dinkum difference for the young bloke.

If you're unsure if a voluntary super contribution approach is suitable for you, seeking the advice of a financial advisor or planner can be a big help.

This article contains general information only. You should consider gettin' confidential and independant professional advice tailored to your situation.