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
What are average super fund fees?
Super fund fees are unavoidable, but not all super accounts are created equal. Fees vary greatly by fund and investment type, but one thing they all have in common is they can be, according to the Productivity Commission (PC), “the biggest drain on net returns”. The PC report concluded that “fees can have a substantial ... Read more
How does SAPTO work? (Senior Australians and Pensioners Tax Offset)
About SAPTO SAPTO is a tax offset for eligible seniors and pensioners in Australia. A tax offset can lower or remove your need to pay income tax, but it doesn’t mean you can get a refund. You’ll also still need to pay the Medicare Levy if you’re not eligible for an exemption or reduction. The Australian Taxation ... Read more
When should I retire?
The decision about when to retire is rarely made overnight. It’s a major life event and deserves careful thought and planning. Finances play a big part, but so do your health, your partner’s circumstances and whether you still enjoy your work or are itching to leave. Sometimes, the choice is made for you. Redundancy, ... Read more
Retirement age calculator: When can you access your super or the Age Pension?
Although there is no ‘retirement age’ in Australia, there are two ages that are important to know for planning your retirement: Preservation age: This is the age when you can access your super funds provided you have also met a condition of release (such as retiring or turning 65). Age Pension age: This is the age ... Read more
How much super do I need to retire?
No doubt you have heard people say you need a million dollars (or some other nice round figure) in superannuation before you can afford to retire. Often they are the same people trying to sell you investment products or advice. Don’t pay attention to them, because there is no magic number. The amount of super YOU need ... Read more
Selecting your super fund: Can I make the choice?
Life is full of choices and the super system is no different. But there is one area where not everybody has a choice and that’s when it comes to selecting the super fund into which their employer directs the Superannuation Guarantee (SG) contributions they make on their behalf. Most Australians – whatever the industry ... Read more
What is included in my Total Superannuation Balance, and when does it apply?
The concept of total superannuation balance, or TSB, was introduced on 1 July 2017 as part of the Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016 as a means to measure your total superannuation interests at any point in time. It is used to determine eligibility for a number of new superannuation ... Read more
How much super do I need to retire on $60,000 a year?
It’s fair to assume that the average Australian might hope to live comfortably, if not lavishly, in retirement. The widely-reported ASFA Retirement standard suggests couples can enjoy a ‘comfortable lifestyle’ on just over $60,000 a year. It stands to reason then that a single person should be able to live more than ... Read more
How much super do I need to retire on $100,000 a year?
If you have always earned a high income and enjoyed the lifestyle that comes with it, chances are you want to continue living in the style to which you have become accustomed once you retire. The widely-reported ASFA Retirement standard suggests couples can enjoy a ‘comfortable lifestyle’ on just over $60,000 a year ... Read more
Is $500,000 in super enough to retire on?
According to the ASFA Retirement Standard, a couple can live a ‘comfortable lifestyle’ with a retirement balance of $640,000 while singles can enjoy the same with $545,000. But these are guidelines only. Depending on your personal circumstances, you might live comfortably on less especially if you are not keen on ... Read more
Is $750,000 in super enough to retire on?
A million dollars is often bandied about as the gold standard of retirement savings, but it is a suspiciously round number. Depending on your personal circumstances, you might live well on much less, say $750,000, especially if you are not a big traveller or you intend to continue working well into your 70s. We’ve ... Read more
Is $1 million in super enough to retire on?
A million dollars is often bandied about as the gold standard of retirement savings. It certainly sounds like a lot of money, but is it enough to retire on not just comfortably but in style? We decided to answer the million-dollar question. Using MoneySmart’s Retirement Planner we have calculated how much income $1 ... Read more
Is $1.6 million in super enough to retire on?
Since 1 July 2017 there has been a $1.6 million limit on the amount you can transfer into a super account in pension phase. The question is, is this an arbitrary figure dreamed up by bureaucrats or is it enough for a dream retirement? The $1.6 million balance transfer cap applies to individuals, which means a couple ... Read more
Is $2 million in super enough to retire on?
A million dollars is often cited as the gold standard of retirement savings. It certainly sounds like a lot of money, but it may not provide the income you require if you are a couple or if one of you has high healthcare needs. So we’ve decided to test run some higher retirement balances to help guide your planning, in ... Read more