Navigating the balance between contributing to superannuation for tax benefits and ensuring sufficient liquidity for early retirement is a common challenge for many Australians. Here are a few strategies that others in similar circumstances have found useful:

1. Diversified Investment Portfolio: Instead of putting all additional savings into super, you might consider diversifying your investments. This could include a mix of shares, bonds, real estate, or other investment vehicles outside of super. This strategy can provide you with more accessible funds before reaching the superannuation preservation age.

2. Superannuation Splitting: If you have a partner, you might consider super splitting, where you contribute to your partner’s superannuation. This can be particularly useful if one partner plans to retire earlier than the other, or if one is significantly younger, potentially providing earlier access to at least part of the family’s superannuation savings.

3. Transition to Retirement (TTR) Strategy: Although primarily used by those who have reached preservation age but are still working, a TTR strategy allows you to start drawing a pension from your super while continuing to work. This can help manage tax while accessing some of your super benefits.

4. Non-Concessional Contributions: You might also consider making non-concessional contributions to your super. These contributions are made from after-tax income and are not subject to the contributions tax within the super fund. This could be a way to increase your super balance without affecting your concessional contributions cap.

5. Investment in Tax-Efficient Vehicles Outside of Super: Look into other tax-efficient investment options such as insurance bonds or certain types of managed funds that offer tax advantages. These can provide growth opportunities without the restrictions associated with superan

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Hi Amir.

As you can see this it a bit of a push/pull conundrum with tradeoffs on both sides.

It depends on how old you are and how close you are to the super access age, either now and when you expect to retire.

You’ll have to figure out exactly how much you’ll need for that 15 year period, and then be mindful of the risk of market drawdowns during that period where you’re living off the portfolio until you can reach super access.

If you are able and willing to do some part time work during that time, it will help enormously in the success of your early retirement and seeing yourself through to 60+, so I’d strongly consider how you can build that optionality into your situation.

All the best.