If you’re retiring this financial year it pays to think about possible timing issues before you start drawing down on your superannuation. Why? Because your age, your total super balance and ability to make additional contributions now or down the track, could all play a part in your decision-making. So, before you ... Read more
Planning for retirement
A Super Guide
People often don’t start thinking about retirement until they are about to stop work or have the decision forced on them. And that’s a wasted opportunity.
Now that we are living longer, retirement may last three decades or more. That’s a long time to regret not doing more to plan and save for a personally fulfilling, financially secure retirement.
With a little planning, you can make a big difference to your retirement outcome.
In our article How to plan for your retirement we outline how to start planning for retirement in seven easy steps. These include thinking about your dream retirement, how long it might last, what it will cost, how much you need to fund it, how much you have now, whether your savings are on track and what you can do to close the gap.
Set out below are key SuperGuide links on Planning for retirement:
- Retirement planning for beginners
- What age can I retire?
- Age-based Super Guide
- How long will I live?
- How much super do I need?
- Retirement Calculators and Reckoners
- $1.6 million transfer balance cap
- Types of super benefits
- Am I eligible for the Age Pension?
- Obtaining financial advice
Set out below are key SuperGuide articles on Planning for retirement:
Set out below are all SuperGuide articles that relate to Planning for retirement.
Reversionary pensions: What they are and how they work
When you retire, there are lots of decisions to make about whether to take a lump sum or start an account-based pension. You also need to decide how you would like the remaining balance of your super account to be distributed when you die. Normally, that means making a death benefit nomination. For more information, ... Read more
Super fund performance: Financial years (to June 2019)
In this article you can find super fund performance for 1, 3, 5, 7, 10 and 15 years, up to the latest financial year and across five different investment options. We’re grateful to Chant West for providing the statistics in this article. See also Super fund performance: Calendar years (to December 2018) The ... Read more
What are lifecycle super funds, and how do they perform?
Click here to jump to the latest returns for lifecycle super funds. Close to 70% of Australians with super in one of the major funds are invested in their fund’s MySuper option, the default option for employees who don’t choose a super fund. If you are a member of a retail fund, this is most likely a lifecycle product ... Read more
Why aged care deserves to be part of your plan
When we plan for life after retirement, we can often tend to focus on saving for a comfortable standard of living and travel. It can be difficult to factor in anything other than a happy and healthy journey as we get older, even if we know the reality can be very different. Australians are getting older The number of ... Read more
Retiring soon? Here are 5 questions you need to answer first
The start of living your best life is in sight – but are you ready? Retiring is a huge step and it would be normal if you have some last-minute details to sort through before you make the final leap. In the run up to retirement, it’s important to prepare yourself financially and emotionally for what should be an ... Read more
How to maximise your Age Pension
Australia has a means tested social security system, which is designed to work like a safety net. The more in assets or income you have, the less Age Pension you may be entitled to. If your assets or income exceed the cut off limits, you will not be eligible to a pension at all. The current maximum rates of Age Pension ... Read more
Age Pension deeming rates cut, at last
The Federal Government has finally bowed to pressure to cut Age Pension deeming rates but stopped short of passing on the full cut in official interest rates. The government will cut the lower deeming rate from 1.75% to 1% for financial investments worth up to $51,800 for single pensioners and $86,200 for pensioner ... Read more
Case studies: How is the Age Pension assessed?
The current (20 March 2019 to 19 September 2019) maximum rates of Age Pension are as follows: Single: $926.20 per fortnight (approximately $24,081 per year) Couple (each): $698.10 per fortnight (approximately $18,051 per year) Note: Includes base pension + supplements. Learn more about Age Pension rates. Not everyone ... Read more
Deeming rates for the Age Pension income test
Deeming is a key concept in the Age Pension income test, which is a test you must pass as one of the requirements to access this government payment. The other requirements are passing the assets test, being age-eligible, and qualifying as an Australian resident. Deeming rules are used by the Department of Social ... Read more
Age Pension calculator: How much could you be eligible for?
Welcome to the SuperGuide Age Pension calculator. Using the calculator is easy. Enter your details in the calculator below (in the yellow blocks) and you will see an estimate of amount of Age Pension you may be eligible for. Note: The Age Pension rates used in the calculator are those that apply from 20 March 2018 to ... Read more
Who gets your super when you die? A guide to death benefit nominations
If you have a valid will in place when you die, most of us assume it’s simply a matter of our executors taking care of all the paperwork and paying out our remaining assets to our beneficiaries in the proportions listed in the will. But in fact, when it comes to your super account, what you state in your will doesn’t ... Read more
Proportioning rule and super tax: What it is and why it matters
When it comes to your super benefits, tax is always at the heart of it, whether it’s when you make a contribution, or when you take your money out at the other end. As the super system offers special tax benefits to help Australians save for their retirement, there are strict rules in place about how much tax you pay ... Read more
A simple guide to what tax is payable on super death benefits
When you die, the tax man can be pretty quick to put his hand out to take his cut, and this also applies to the balance of your super account. But working out just how much of your super death benefit will be paid to your nominated beneficiaries and how much will go to the ATO isn’t straightforward. ... Read more
‘Pension tax’ deemed unfair
Note: This article was published before the government announced changes to the deeming rates on 14 July 2019, dropping the lower rate from 1.75% to 1%, and the higher rate from 3.25% to 3%. For more information on the changes see SuperGuide article Age Pension deeming rates cut, at last, and learn more about deeming ... Read more