Retirement Planning Ivanhoe
The thought of retiring, or planning your retirement can be daunting and frightening for many of our people. The absence of a daily structure and routine that paid employment provides can cause some anxiety let alone some concerns over how your finances will be impacted.
For many others, the sense of freedom to do what you want, when you want, conjures aspirations to do all of the things you have never had the time to do previously. Whether that be: travel, grandchildren, hobbies or just spending some more time with a special someone, retirement can open up plenty of opportunities.
No matter how you may be feeling, there are some common areas that need to be addressed for everyone, and the team at GNS Group, based in Ivanhoe, have seen all of this before, and are here to help guide you on the path towards retirement and discuss planning your retirement with you.
But how do we do this?
Firstly we need to understand a bit of your background: family life, work history, any remaining debts, superannuation and investment balances, special needs for you or your family and an idea on what your hopes/goals for the future are. A retirement planner needs to understand your unique circumstances in order provide the best advice.
A face to face consultation in our Ivanhoe offices (if you are based in Melbourne) with one of our expert retirement planners is also recommended. However an initial phone consultation is perfectly fine.
We then use our experience to set some realistic expectations on investment returns and available retirement income sources. We will work with you to prioritise your goals give you clarity over what actually is possible.
Finally, we implement our advice to make sure that you are appropriately invested, taking into account your risk tolerance, income needs and time frame. We’ll explore what Centrelink support is available to you to supplement your own income and assist you in reviewing your retirement budget. All the while, holding your hand through the transition into retirement.
And whilst we are talking about Transition To Retirement, you may not be up to speed on what is possible (that’s ok – GNS are up to speed for you).
Some years ago, the government changed the rules in relation to starting a pensions, not a Centrelink Age Pension, but rather your own personal superfund and commencing a pension. No longer did you have to be permanently retired to commence a pension.
When it comes to all of this – planning your future – you need to make sure the planner you’ve chosen to work with understands your situation and how any changes could impact your retirement.
We welcome you to book a consultation with one of the best and well-informed retirement planners Ivanhoe has. Contact us today.
Nowadays, once you are over the age of 56 (slowly increasing to age 60) you can commence a Transition To Retirement (TTR) Pension even whilst you are still working. Originally the plan was meant to be once you hit age 55, you may what to start dropping a day or two of paid work, but you still wanted to maintain the same standard of living and income. So the government allowed a TTR Pension to be commenced, where you could elect to receive between 4-10% of your super/pension balance annually as a pension payment.
Although this pension income was taxable income (at least in part) it was a viable option for those scaling back for retirement.
But then some clever advisers, including those are GNS, worked out the rules did not actually require you to be reducing work nor have firm plans to ‘transition to retirement’. In fact, all you had to do was meet the age requirement, and then roll over your superannuation balance into a pension fund.
This has led to many people in their late 50s, commencing a pension, if for nothing else, to save tax. But how does a Transition To Retirement Pension save tax?
Well you see the investment earnings (interest etc) that a pension receives, is all tax free. Whereas when its still inside super, a 15% income tax rate applies. So a TTR Pension was a way to instantly boost your investment returns by a 15% tax saving.
This tax saving does need to be considered in conjunction with the receipt of perhaps a taxable pension income stream to gauge the net benefit, but the GNS team can assist with this.
There are many different strategies available to assist every Australian approaching retirement, but the important things to remember are:
Seek professional advice from a Financial Adviser such as those at GNS Group
Make sure they understand your needs
And that they will be available to guide you through the process.
Contact our office today for an obligation free consultation to see how we might be able to assist you.