The prospect of putting less into superannuation has prompted many Australians to start looking for other ways to boost their retirement savings.

Jumping on the offensive by seeking out other tax-effective ways to increase retirement savings isn’t always easy, with complications such as fees, administration and confusing terminology attached to saving outside of super.

Nonetheless, there are existing strategies predicted to experience a resurgence following the introduction of contribution caps set out in the 2016 Federal Budget. Below are three options for savers looking to alternative measures to protect their wealth:

Insurance bonds

For those in the top tax bracket, insurance bonds (also known as investment bonds) can be used as a wealth-building strategy. They are a type of a life insurance policy with the features of a managed fund sold through life insurance companies and building societies.

All earnings within the structure attract the corporate tax rate of 30 per cent. After ten years no further tax is payable.

Investors can top up the amount in the fund as long as their subsequent investment does not exceed 125 per cent of the initial investment.

Doing so triggers the 125 per cent rule which sets back the 10-year benefit to year one for the newly invested amount.

Instalment warrants

For those who have at least 20 years or more until retirement, instalment warrants may be a viable alternative to salary sacrificing. Instalment warrants are similar to a lay-by on an asset like shares i.e. similar to putting down a deposit or a part-payment and repaying the remaining amount on the listed asset in instalments over time.

A key selling point of an instalment warrant is that the taxpayer receives all the benefits of owning shares, such as dividends and franking credits. The interest component of the loan and the borrowing fee can also be offset against tax.

However, since instalment warrants can be a relatively aggressive strategy, they may be better suited to those who have a longer investment horizon so they can ride out the volatility.

Family trusts

When used correctly, family trusts can be an effective way to add to super. They allow higher- earning family members to distribute income to lower-earning family members to even out the tax burden among the family and protect assets for future and current generations.

The strategy is also beneficial where one partner is on a lower tax bracket. Additionally, family trusts are suitable for adult children as you are not able to use the strategy for children under 18, as investment income above $416 is taxed at a higher rate, resulting in an insignificant tax benefit.

Family trusts are accessible before retirement and can safeguard assets for nominated people and purposes, which can help prevent the assets falling into the wrong hands in the case of death or divorce.