Retirement Planning
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Superannuation & Retirement Planning in Maitland & Newcastle
Overview
Planning for retirement is an important step in securing a comfortable future. As you’re considering retirement, here are some key areas to focus on:
Superannuation
Superannuation (super) is a key component of retirement planning in Australia.
Superannuation Contributions
- Employer contributions (Superannuation Guarantee) are mandatory, currently set at 11%. You can also make voluntary contributions to boost your super (conditions apply).
Types of Contributions
- Concessional (before-tax) - These include employer contributions and salary sacrifice.
- Non-concessional (after-tax) - These are contributions made from other sources and are not taxed upon entering the fund.
- Accessing Superannuation - Generally, you can access your super when you reach your preservation age and when you retire (conditions apply)
Age Pension
The Age Pension is a safety net provided by the government:
- Eligibility - To qualify, you must meet age and residency requirements and pass an income and asset test.
- Age Requirement - The qualifying age for Age Pension is gradually increasing and will reach 67 by July 1, 2023.
Investment Strategies
Effective investment strategies can help grow your wealth:
- Diversified Portfolio - Consider a mix of asset classes like stocks, bonds, property, and cash to spread risk.
- Risk Tolerance - Match your investment choices with your risk tolerance and time horizon.
Budgeting and Expenses
Understanding your future expenses is crucial:
- Estimate Living Expenses - Calculate how much you’ll need annually, covering essentials (housing, utilities, food) and discretionary spending (travel, hobbies).
- Health Care - Factor in health care costs, which may increase as you age.
Tax Planning
Tax-efficient strategies can maximise your retirement income:
- Tax-Free Threshold - Once you reach the age of 60 (preservation age) , you can generally start accessing your Super through a Transition To Retirement Income Stream (TTRIS) (conditions apply).
- Pension Payments - If you convert your super into a retirement income stream, the payments you receive may be tax-free.
Estate Planning
Prepare for how your estate will be managed:
- Wills and Power of Attorney - Ensure your will is up-to-date and consider appointing a Power of Attorney for financial and health matters.
- Nominate Beneficiaries - For your superannuation and other investments.
Professional Advice
Consider getting advice from financial planners:
- Accredited Advisors - Look for certified financial planners who specialise in retirement planning.
Retirement planning is unique to each individual’s circumstances and goals. Regularly review and adjust your plan to stay on track