Retirement Planning Services in Ipswich
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With Australia’s high life expectancy and longer average retirement length, planning for 20-30 years without regular employment income is crucial, making it important to maximise super and savings for retirement. Retirement planning can be a complex and overwhelming process. To ensure you’re on the right track, it’s important to start with a checklist of key items to consider.
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Pre-Retirement Checklist Before You Start Planning
This checklist helps you to estimate how much super you will have when you retire and how long your retirement savings will last, which can help you make informed financial decisions and ensure a comfortable retirement.
1. When you can access your super
The Preservation age is a significant factor affecting an individual’s retirement timing in Australia. It represents the age when one can access their superannuation. These ages are progressively rising in response to increased life expectancy. This implies that Australians may need to extend their working years and postpone retirement to ensure adequate retirement savings and assistance.
Date of Birth
PRESERVATION AGE
Before 1 July 1960
55
1 July 1960 - 30 June 1961
56
1 July 1961 - 30 June 1962
57
1 July 1962 - 30 June 1963
58
1 July 1963 - 30 June 1964
59
After 30 June 1964
60
When you are eligible for Age Pension
The pension age has increased to 67 years for both men and women, based on a schedule that depends on the individual’s birthdate. The current pension age schedule is as follows:
Birthdate Range
Age Pension qualifying age
Before July 1, 1952
65 years
July 1, 1952 - Dec 31, 1953
65 years and 6 months
Jan 1, 1954 - Jun 30, 1955
66 years
Jul 1, 1955 - Dec 31, 1956
66 years and 6 months
After Dec 31, 1956
67 years
It’s important to note that while a person may be able to access their super once they reach Age Pension qualifying age, they may not necessarily be able to access the full amount. The amount that can be accessed will depend on a range of factors, including the person’s age, the amount of money they have in their super account, and any other income or assets they have. However, there’s another benefit available for those over 60 who are retired but can’t yet access the pension due to the rising retirement age. They can apply for a Low-Income Health Care Card (LIHCC), which not only helps with healthcare expenses but also has the potential to lower bills and registration costs, depending on the state. This serves as a valuable supplement for retirees in this age group.
There are certain circumstances in which a person may be able to access their super early. Depending on payment duration, job seekers aged 55-59 can satisfy mutual obligations through 30 hours per fortnight of paid work or a mix of voluntary work and paid work. Job seekers aged 60+ and principal carer parents (55+) can meet obligations with 30 hours per fortnight of approved work. While voluntary work may exempt some obligations, individuals remain connected to providers. Mature-age parents with dropped hours have a grace period to restore them. Short periods off payment still count toward the 12-month payment assessment.
Other circumstances can be suffering from a terminal illness, having a permanent disability, or experiencing severe financial hardship. However, accessing super early under these circumstances can be complex, so it’s important to seek professional advice before making any decisions.
2. What you want to do in retirement
Consider your personal aspirations and goals for your retirement. Do you want to travel, volunteer, start a new hobby or business, or spend more time with family and friends? Consider what activities you want to do in retirement and how they align with your financial situation.
3. What lifestyle you want to enjoy
Think about the lifestyle you want to have in retirement, including where you want to live, the type of accommodation you prefer, and what type of leisure activities you want to engage in. Consider the costs associated with your desired lifestyle and how they fit within your retirement budget.
4. How much money you may need each year
Estimate your retirement expenses, including basic living costs, healthcare expenses, and discretionary spending. Use online calculators, speak with financial advisers, or use a retirement planner to determine your projected retirement income needs.
5. Personal and financial goals for retirement
Set personal and financial goals that align with your retirement aspirations. Consider setting goals for reducing debt, increasing retirement savings, or investing in assets that will provide passive income during retirement.
6. Strategic plans for achieving retirement goals
Develop a strategic plan for achieving your retirement goals. This may include reducing spending, increasing income, paying down debt, or investing in income-generating assets. Consider speaking with a financial planner to develop a comprehensive strategy.
7. Reviewing investment positions and asset allocation
Review your investment portfolio and ensure that your asset allocation is aligned with your risk tolerance and retirement goals. Consider diversifying your portfolio to minimise risk and maximise returns.
8. Assessing retirement savings and income sources
Evaluate your retirement savings and income sources, including any employer-provided retirement plans, personal savings, and investments. Consider the impact of inflation, taxes, and any potential changes in government policy that may affect your retirement income.
9. Identifying any gaps in retirement income and savings
Identify any gaps between your estimated retirement income needs and your current retirement savings. Consider making additional contributions to your superannuation account or investing in alternative income-generating assets.
10. Making extra super contributions to reach desired retirement savings
Consider making extra super contributions to reach your desired retirement savings. This may include making voluntary contributions or taking advantage of government incentives such as the co-contribution or spouse contributions.
11. Are you leaving any super for your family?
Consider your estate planning goals and whether you want to leave any of your superannuation savings to your family or beneficiaries. Speak with a financial planner or estate planning attorney to develop a comprehensive estate plan that aligns with your retirement goals.
Pre-Retirement Planning Strategies We May Consider For You
Our Total Wealth Management adviser will help you get off to a good start, eliminate the confusion and find out which of the following powerful strategies below suits your needs and circumstances.
- Maximise your retirement lifestyle by boosting your income with part-time work and super top-ups.
- Enjoy the best of both worlds: watch your super grow while maintaining your current income level
- Retire with peace of mind and financial security by using smart tax strategies to make the most of your super between ages 55 and 59
- Embrace your golden years with confidence and freedom, thanks to tax-effective super strategies designed for retirees over age 60
- Take charge of your financial future and enjoy the fruits of your labour by investing the proceeds from your business in a tax-efficient way
- Make the most of every dollar and optimise your tax situation by investing non-super money in a smart and effective way
- Keep more of your hard-earned money by offsetting capital gains tax with a tax-efficient account-based pension
- Keep your tax bill in check and grow your nest egg by reinvesting your super
Tips to Boost Your Retirement Income
- Downsizer contribution scheme: If you’re over 55 and selling your home, you can make a downsizer contribution of up to $300,000 into your super account, which can boost your retirement savings.
- Home Equity Access Scheme: If you own your own home, you can consider using a Home Equity Access Scheme, which allows you to access some of the equity in your home to boost your retirement income. This can be done through a reverse mortgage or other types of equity release products.
- Having a good sense of your probable future costs: It’s important to have a clear idea of what your living expenses will be in retirement, so you can plan accordingly. This includes factoring in any future healthcare costs, travel expenses, and other potential expenses.
- Finding the best super for you: Research different superannuation funds to find the one that suits your needs and goals. Consider factors such as fees, investment options, and insurance options.
- Consolidating your super: If you have multiple super accounts, consider consolidating them into one account to reduce fees and simplify your retirement planning.
- Making additional contributions: Consider making additional contributions to your super account, such as salary sacrificing or after-tax contributions, to boost your retirement savings.
- Delaying retirement: If possible, delaying retirement can provide you with more time to build up your superannuation savings and reduce the amount of time you’ll need to rely on retirement income.
- Seeking professional financial advice: Consider speaking with a financial advisor who can help you to develop a comprehensive retirement plan and identify strategies to top up your retirement income.
What is the Best Super for Me?
Choosing the right super fund means you can maximise the growth of your retirement savings and ensure that you have enough money to support yourself throughout your retirement. For example, choosing a fund with lower fees and charges can help maximise your retirement savings over the long term, which can increase your retirement income. Similarly, choosing an investment strategy that aligns with your risk tolerance and retirement goals can help generate higher returns, which can also increase your retirement income.
We can help you grow your super without reducing your income.
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