You can make two types of superannuation contributions – concessional (before-tax) contributions and non-concessional (after-tax) contributions – and each type of contribution has a separate limit known as a contributions cap (see text and tables below). A concessional contribution is a before-tax contribution made ... Read more
Planning for retirement
A Super Guide
Planning for retirement is a big topic that covers the key decisions you need to make when looking ahead to the lifestyle that you hope to have, after you finish working. One of the first steps in making a successful transition to retirement is to have a plan, or at least start thinking about a plan.
For those new to the topic, or for those readers needing a refresher, why not start with our ‘Retirement planning for beginners’ section (see link below). If you’re looking for more specific information on retirement planning, such as the age you can retire, or the magic amount of super you need for a worry-free retirement, or whether you will be able to claim the Age Pension, then this special SuperGuide section can help you.
Note: The term ‘retirement’ has a special meaning for when you can access your superannuation benefits (see Retirement definition).
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
- Will I get the Age Pension?
- Obtaining financial advice
Set out below are key SuperGuide articles on Planning for retirement:
Set out below are all SuperGuide articles referring to Planning for retirement.
Investment performance: Latest super returns (to December 2018)
Note: For investment returns over 1 month, 3 months, 1 year, 3, 5, 7, 10 and 15 years to 31 December 2018 for 5 main investment options offered by super funds, see Table 1 later in the article. For month-by-month performance data, going back 5 years (60 months), for the 5 main investment options offered by super funds, ... Read more
International shares: Super fund trustees take on too much risk
Note: This article contains updated performance tables to December 2018 (and to June 2018), comparing the performance of unhedged and hedged international shares over 1 year, 3 years, 5 years, 7 years, 10 years and 15 years. Long-term readers of this SuperGuide website may recall my strong support for hedging ... Read more
Lifecycle investment options (returns to December 2018)
If you haven’t chosen your own super fund, or you haven’t actively selected an investment option, then you need to be aware that your super money may not be invested within a traditional default growth investment option (which has at least 60% of your super money invested in growth assets such as shares and listed ... Read more
Contributions caps relate to financial years, not calendar years
Q: I understand the three-year bring-forward rule now allows you to contribute up to $300,000 in after-tax contributions. My question is: What date does the second three-year period start? For example, if I contributed $300,000 on 28 Dec 2018, does that mean I can contribute another $300,000 on or after 1 July 2021 (or ... Read more
Super fund fees: Do lower fees mean better net returns?
In the superannuation world there’s always a lot of talk that lower fees equates to more savings over the life of your super. The Productivity Commission in it’s recent report on superannuation said that: Higher fees are clearly associated with lower net returns over the long term. The material amount of member ... Read more
Take the Australian Life Tables with a pinch of salt
With decades of expert actuarial experience, David Orford reviews the current risks with using the Australian Life Tables at face value. Learn more about Life expectancy or try our life expectancy calculator. Recent research by the Actuaries Institute of Australia found that the tools used by advisers to look up ... Read more
Understanding your life expectancy
Ever wondered how long you might live, and what the current projections are for Australians? These are natural considerations as you plan for retirement and older age. Common thinking has it that we are living longer, with healthier lifestyles and advances in medical science. After all, knowing how to spend your ... Read more
Financial advice: Only 124 independent financial advisers in Australia
Note: This article is updated regularly when new financial advisers join the independence club (latest update January 2019). A financial adviser does not have to be a member of the IFAAA to join the SuperGuide list, provided they can declare that they satisfy the requirements of being an independent adviser (we now ... Read more
How to compare super funds in 7 easy steps
Superannuation is a long-term investment but that doesn’t mean you can afford to put off thinking about it for a day that never comes. Like any long-distance journey, you want to make sure you know where you are headed and how to reach it. That includes finding a vehicle that’s fit for purpose. Otherwise, you could ... Read more
The tax treatment of super benefits and the proportioning rule
The tax treatment of a superannuation benefit depends on a number of factors: the age of the person; whether the benefit comprises a tax free component and or a taxable component; whether the benefit is in the form of a lump sum or an income stream (i.e. a pension); and whether the taxable component ... Read more
Bring-forward rule: A definitive super guide
Note: The information in this article relates to the 2018/2019 financial year and the 2017/2018 financial year. The bring-forward rule allows an eligible Australian to contribute up to 3 years’ worth of after-tax contributions (non-concessional contributions) in one year, representing the annual non-concessional cap ... Read more
