Pre-Retirees
It usually seems that all of a sudden retirement is nearly upon you and you may not be sure you are ready financially. We can guide you through the process by tailoring a plan to meet your needs which may include assistance with Transition to Retirement Pensions, Super consolidation, and Centrelink applications.
By completing a financial plan you will have clarity about how long your money will be able to fund your lifestyle and your options.
Typically the issues facing pre-retirees are:
- What age can I retire at?
- Will I be eligible for a Centrelink pension?
- How much do I need to retire on?
- How long will my super last? With retirees now often living into their 90’s, retirement lasts as long as the years spent working so we want to make sure you will have enough.
Our discussions will typically also address issues including:
- The likelihood of easing out of the workforce gradually
- Redundancy management (if applicable)
- Reviewing debt with a view to clearing all debt by retirement
- Reviewing existing investments including rental properties, share & managed fund portfolios & superannuation
- Downsizing strategies (if relevant)
This means when the time comes to retire, you are in the best possible position to relax and enjoy your life.
Our advice will help you prepare and make the necessary changes. Having someone to hold your hand through the process makes your life much easier.
Transition to Retirement (TTR)
A transition to retirement pension allows someone to access part of their superannuation while they are working. This can be particularly helpful if someone wants to gradually reduce their working hours, but still wants additional income for their living needs.
TTRs are age dependant and the age at which a person can access their super is called their ‘preservation age’.
A person’s preservation age ranges from 55 to 60, depending on their date of birth.
| Date of birth | Preservation age (years) |
|---|---|
| Before 1 July 1960 | 55 |
| 1 July 1960 – 30 June 1961 | 56 |
| 1 July 1961 – 30 June 1962 | 57 |
| 1 July 1962 – 30 June 1963 | 58 |
| 1 July 1963 – 30 June 1964 | 59 |
| After 30 June 1964 | 60 |
If you achieve preservation age you can take a maximum of 10% of the balance of your super as a regular pension or as a one-off payment in a year. It is possible all or part of the pension will be taxable but often the amount of tax is quite low. We can provide advice in relation to the tax aspect of this and impact on your overall situation.
Back to home