Note: This article is regularly updated with new figures to allow readers to compare what a $2 million retirement can deliver if retirement savings are invested with returns of 7% a year, or if invested on retirement with returns of 5% each year. If you opt for a 5% investment return, rather than, … [Read more...]
Note: We regularly update this article with the latest data on superannuation funds issued by the Australian Prudential Regulation Authority (APRA). This article contains the latest data available as of May 2013 (for data as at March 2013). Unless you work in the superannuation industry, how the … [Read more...]
Note: This article is regularly updated with new figures (in particular the effects of Age Pension changes), to allow readers to compare what a $1 million retirement can deliver if retirement savings are invested with returns of 7% each year, or if invested on retirement with returns of 5% a year. … [Read more...]
Note: This article is updated regularly with the latest lifestyle/income data, and latest Age Pension rates. The most recent data was released in May 2013 (for lifestyle costs up to March 2013) and includes March 2013 Age Pension rates (which apply until September 2013). Due to reader demand and the … [Read more...]
How much money do you need in retirement to live a lifestyle free of everyday money worries? For many Australians, this means a lifestyle where you can pay your bills without financial stress, you can enjoy an occasional holiday (or many!), you can maintain your car and house, and you can buy gifts … [Read more...]
The federal government will be introducing a temporary concessional cap for over-60s from 1 July 2013, which will also apply to over-50s from 1 July 2014. Draft legislation has been prepared for this change. The government will be introducing an unindexed cap of $35,000 for over 60s (from 1 July … [Read more...]
Q: Do you need to be 60 at July 1 or could you turn 60 any time in 2013/2014 to take advantage of the new $35,000 cap? A: For the benefit of other readers, I will first explain the background to the new over-60s cap. On 5 April 2013, the federal government announced that it will be introducing an … [Read more...]
Note: This article explains the Superannuation Guarantee rate. If you’re seeking information on other superannuation rates and thresholds see SuperGuide article Super rates and thresholds for the 2012/2013 year. In the 2013 Federal Budget papers, the planned increase in Superannuation … [Read more...]
For the 2012/2013 year, only one concessional (before-tax) contributions cap exists for all ages, and that cap is $25,000. Before July 2012, we had a concessional cap for under-50s and a concessional cap for those 50 years and over. From the 2013/2014 year, we will have a special concessional cap … [Read more...]
On 5 April 2013, the federal government announced that it proposes to extend the deeming rules for Age Pension income test, so they apply to new superannuation pensions, from 1 January 2015. According to the government, all products held by pensioners before 1 January 2015 will be grandfathered … [Read more...]
Q: Where can I find the spreadsheet where you can calculate how much to put in as a co-contribution, and what the government will pay you in return for that super contribution. In other words the sliding scale of co-contributions. The schedule you refer to can be found at the link here. You … [Read more...]
Q: I am drawing an account-based pension from my SMSF. I am turning 65 in June 2013. Will I need to draw a minimum of 3% or 3.75% for the 2012/2013 year? Or, in other words, what is the determining age, the one at the start of the taxation year, or the age attained in the course of the taxation … [Read more...]
Q: I am aware that the minimum amount of pension withdrawal is normally 4% (for under 65s) of the pension account balance (currently 3% for 2012/2013). Is there now any MAXIMUM amount of pension required to be drawn from a super fund? If not, is this still the case for account based pensions, … [Read more...]
I receive a lot of questions from readers seeking information about how the non-concessional (after-tax) super contributions rules work; in particular, how the bring-forward rule works. More recently I have received several emails from readers who have fallen foul of the bring-forward rules and … [Read more...]
Q: I was an Australian citizen, age 37, and had been part of a super fund from about 1993/4. I left Australia in 2001. I see from your 12 legal reasons to cash your super article that I may be able to access my restricted benefit. You write: “Cease employment and have certain pre-1999 super … [Read more...]
