Preparing for Retirement

Increasing the tax free portion of your super can be very beneficial if you plan to withdraw funds as an income stream before the age of 60 and for benefit payments in the event of your death.

There are strategies can be put in place to increase the tax free component of your super balance.

You should seek advice sooner rather than later. That would give you time to decide on a strategy and become comfortable with that strategy. There will be enough other things happening in your life at retirement without having to grapple with major financial decisions.

We generally suggest that $500,000 is a good starting point to ensure fees (such as accounting and audit fees) are relative to the earnings and size of the portfolio.

This is generally different for everyone and depends on the lifestyle you would like to maintain upon retirement. Speak to one of our advisers about what might be right for your circumstances.

If you elect to commence a super pension you be will required to satisfy a set of minimum standards in order for you to claim an exemption for the income earned on your pension assets. These standards include:

• The pension must be account-based.
• A minimum amount must be paid out to you annually.
• The capital supporting the pension cannot be increased using contributions or rollover amounts once the pension has started.
• Upon your death your pension can only be transferred to a dependent beneficiary of yours.
• The capital value of the pension or the income from it cannot be used as security for borrowing.
• Before a pension can be commuted, the minimum pension must be paid out.

If you elect to commence a Transition to Retirement Pension you will also be restricted to withdrawing a maximum of 10% of your opening balance annually.