Ensuring that your money is working for you is important at every stage of life. It becomes crucial when you retire, as you need that money to support you through retirement. That is why it is important to invest your money wisely.
Important questions that need to be discussed are;
- How soon would you like to retire?
- What do you plan to do with your time when you retire?
- How much super do you have?
- How many years of retirement do you need to plan for?
- Are you thinking of working part-time?
- Will you be making any big purchases like a house, car or holiday?
- Will you access the age pension or other Centrelink benefits?
- Prepare for your retirement.
- Select the best super and best funds.
- Ensure you obtain the maximum tax and social security benefits.
- Secure your assets.
- Utilise tax-efficient strategies to transfer your wealth.
- Plan your estate so your loved ones are taken care of.
With the right investment strategy, products such as allocated pensions and annuities can make your money work for you.
Transition to Retirement
Transition to Retirement is a tax effective strategy that could benefit you if you are 55 and over and still working. The strategy is a Government initiative that gives workers aged 55 or over, access to their super money.
A Transition to Retirement strategy could help you with one of the following:
- Ease into retirement by reducing your working hours but still maintain your take-home income.
- Boost your savings and maintain your income.
- Boost your take-home income.
How does Transition to Retirement work?
Super is a tax-effective environment. Provided we have your tax file number (TFN), you only pay 15% tax on the contributions you make with pre-tax income, and up to 15% tax on investment earnings. This means, instead of being taxed at your marginal tax rate which can be as high as 46.5%, you may only pay 15% when you put your salary into your super. As most people who are currently aged 55 or over can have access to their super through a Transition to Retirement pension, that money isn’t locked away until you completely retire.
A Transition to Retirement strategy also offers a range of tax and other benefits. To learn more about Transition to Retirement we recommend that you arrange for a meeting with one of our financial planners who can help you decide whether Transition to Retirement fits with your financial situation and future plan.
