{"id":8023,"date":"2023-06-05T12:03:35","date_gmt":"2023-06-05T02:33:35","guid":{"rendered":"https:\/\/adelaideprivatewealth.com.au\/flexing-your-retirement-plans\/"},"modified":"2023-06-05T12:03:35","modified_gmt":"2023-06-05T02:33:35","slug":"flexing-your-retirement-plans","status":"publish","type":"post","link":"https:\/\/adelaideprivatewealth.com.au\/flexing-your-retirement-plans\/","title":{"rendered":"Flexing your retirement plans"},"content":{"rendered":"
The concept of retirement is changing, with fewer people working towards a final retirement date and then clocking off for good.<\/p>\n
Instead, those who have the flexibility to choose are often transitioning out of the workforce over several years, or even returning after a break.<\/p>\n
Whether you simply want to wind back your working hours to explore other interests, or don\u2019t want to cut your ties with work completely, to make it work you need to plan.<\/p>\n
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There is no set retirement age in Australia, but most people will not be eligible to receive an Age Pension until they reach age 67.i<\/sup> This means you need enough savings to provide another income source if you retire earlier.<\/p>\n Although most of us have super, you are not permitted to access it until you reach your preservation age, which can vary.<\/p>\n Withdrawing your super also requires you to meet a condition of release. There are various conditions, but the most common one is reaching age 60 and permanently retiring from the workforce. Once you turn 65, you can access your super whether you are working or not.ii<\/sup><\/p>\n Keep in mind, tax also affects your super, with different rates applying depending on your age. Most people can access their super tax-free once they reach 60.<\/p>\n Unfortunately, there is no simple answer to how much income you will need in retirement. It depends on your current lifestyle and planned retirement activities, but a good place to start is the ASFA Retirement Standard.<\/p>\n For around 62% of the population aged 65 and over, the main source of retirement income is the Age Pension and government payments.iii<\/sup><\/p>\n Eligibility for an Age Pension is assessed using your age, residency status and personal income and assets. These determine whether you receive the full fortnightly payment rate, which is currently $1,604.00 a fortnight for a couple.iv<\/sup><\/p>\n As part of your planning, check for other potential sources of income from investment assets, contract work, or rent from investment or Airbnb properties.<\/p>\n While you may dream of retiring early, many of today\u2019s retirees can expect to live well into their 80s, so your super may need to provide income for more than 20 years. If you are unsure whether your super is on track, we can help you check your progress and put strategies in place to achieve your retirement goals.<\/p>\n Most super funds provide online calculators to give a rough estimate of your likely retirement balance and how much income it will provide.<\/p>\n ASIC\u2019s MoneySmart Retirement Planner is another resource for working out your retirement income and potential Age Pension payments.<\/p>\n If you would like to ease into retirement, it can be worth investigating a TTR pension. These allow you to cut back working hours while using your super to supplement your income without compromising your lifestyle.<\/p>\n If you are aged under 60 you will pay some tax on pension payments, but they are tax-free once you reach age 60.v<\/sup><\/p>\n TTR pensions also allow you to continue topping up your super through a salary sacrifice arrangement with your employer. You only pay 15% tax on these contributions, which may be lower than your marginal tax rate.v<\/sup><\/p>\n If you have income to spare as you move towards retirement, perhaps from an inheritance or downsizing your home, there are now additional opportunities to continue adding to your super.<\/p>\n You can make personal after-tax contributions of up to $110,000 a year until you reach age 75, even if you are not working. You may even be eligible to use a bring-forward arrangement and add up to $330,000 in a single year. \u00a0<\/p>\n Once you hit 60, if are planning to sell your current home you can also make a downsizer contribution of up to $300,000 ($600,000 for a couple) into your super account.<\/p>\n When you are doing your retirement sums, don\u2019t forget some of the concessions on offer to older Australians. If you are aged 60 and over and working less than 20 hours per week, your state\u2019s Seniors Card can provide discounts on public transport and some goods and services.<\/p>\n You may also be eligible for the Commonwealth Seniors Health Card for cheaper prescriptions and medical appointments, or a Pensioners Concession Card for discounted public transport. \u00a0<\/p>\n If you would like to discuss your retirement options and how to fund them, give us a call.<\/em><\/p>\n i https:\/\/www.servicesaustralia.gov.au\/who-can-get-age-pension?context=22526<\/a><\/span> Important: This provides general information and hasn\u2019t taken your circumstances into account. It\u2019s important to consider your particular circumstances before deciding what\u2019s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. <\/span><\/span><\/p>\n Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents\/information contained within the linked site(s) accessible from this page.<\/span><\/span><\/p>\n The post Flexing your retirement plans<\/a> appeared first on MLC Contemporary<\/a>.<\/p>\n<\/div>\nPaying for your retirement<\/h3>\n
Using your super savings<\/h3>\n
Transition-to-retirement (TTR) pensions<\/h3>\n
Giving super a late boost<\/h3>\n
Retiree concessions<\/h3>\n
ii https:\/\/www.ato.gov.au\/Individuals\/Super\/<\/a><\/span>
iii https:\/\/www.aihw.gov.au\/reports\/australias-welfare\/age-pension<\/a><\/span>
iv https:\/\/www.servicesaustralia.gov.au\/how-much-age-pension-you-can-get?context=22526<\/a><\/span>
v https:\/\/moneysmart.gov.au\/retirement-income\/transition-to-retirement<\/a><\/span>
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