How Much Do You Know About Retirement Planning?

The amount you’ll need in retirement is largely determined by your personal circumstances. For example, you may have expenses to consider like:a mortgage,rent,medical costs, etc.The amount you’ll need will also consider what you will be doing with your new freedom. Perhaps you plan to travel, renovate your home or take up a hobby.The government’s Money Smart website has a basic calculator, designed to give you a ‘ballpark’ estimate of the savings you might need. For an accurate guide to your future requirements, you’ll need to look in more detail at your current position, your retirement goals and expectations, and develop a strategy to get you there. This is where professional advice is invaluable.

Retirement age in Australia depends on when you were born. The government applies a formula based on the year and month of your birth, but you can work it out using Money smart’s Super and pension age calculator found on their website.

Retirement age in Australia depends on when you were born. The government applies a formula based on the year and month of your birth, but you can work it out using Money smart’s Super and pension age calculator found on their website.

Government monetary controllers, in Australia it’s the Reserve Bank, reduce interest rates when they want to encourage consumer spending. The theory is that businesses and individuals with debt, will not need to spend as much servicing their loans and will have more cash in their pockets, which, it is hoped, would find its way into retail and other industries.Low interest rates tend to happen when an economy experiences an increase in savings and a reduction in borrowing – which can signal a lack of consumer confidence. While governments like us to save, they also hope that lower interest rates will lead to increased borrowing confidence, particularly business borrowing, resulting in greater productivity and economic growth.Speak to your financial planner to learn about ways to maximise your retirement income in times of low interest rates.

Government monetary controllers, in Australia it’s the Reserve Bank, reduce interest rates when they want to encourage consumer spending. The theory is that businesses and individuals with debt, will not need to spend as much servicing their loans and will have more cash in their pockets, which, it is hoped, would find its way into retail and other industries.Low interest rates tend to happen when an economy experiences an increase in savings and a reduction in borrowing – which can signal a lack of consumer confidence. While governments like us to save, they also hope that lower interest rates will lead to increased borrowing confidence, particularly business borrowing, resulting in greater productivity and economic growth.Speak to your financial planner to learn about ways to maximise your retirement income in times of low interest rates.

We’re living longer these days. According to the Australian Institute of Health and Welfare, the average Australian can expect to be in retirement for around 20 years. Even if you own your own home and have no debt, you will still have to cover living expenses, medical, food, insurances, utilities and so on... for twenty years.Twenty years! Think about it.Without adequate planning and an appropriate savings strategy, you may not be able to afford those lifestyle goals you’ve been looking forward to – holidays, home renovations, etc., let alone access to emergency cash if the fridge breaks down or your roof springs a leak.A financial planner will discuss your retirement plans with you, and work with you to create a retirement savings plan that will enable you to retire without financial worries. Don’t you deserve it after all those years of work?

We’re living longer these days. According to the Australian Institute of Health and Welfare, the average Australian can expect to be in retirement for around 20 years. Even if you own your own home and have no debt, you will still have to cover living expenses, medical, food, insurances, utilities and so on... for twenty years.Twenty years! Think about it.Without adequate planning and an appropriate savings strategy, you may not be able to afford those lifestyle goals you’ve been looking forward to – holidays, home renovations, etc., let alone access to emergency cash if the fridge breaks down or your roof springs a leak.A financial planner will discuss your retirement plans with you, and work with you to create a retirement savings plan that will enable you to retire without financial worries. Don’t you deserve it after all those years of work?

A transition to retirement (TTR) strategy works by enabling you to boost your retirement savings and pay less tax through salary sacrifice.You start by rolling your super savings into a retirement income stream. Then you salary sacrifice your wages to boost your super savings. The portion of your salary that you salary sacrifice will be taxed at 15% instead of your normal income tax rate – which for most people is a tax saving.By salary sacrificing, you’ll receive less money in your take home pay, but you can make up the difference by taking a small income stream from your retirement funds.A TTR is a complex strategy with conditions attached. If you’re not careful, it may result in you having less money to retire on, but done right, it can be a terrific way to boost retirement savings and ease into freedom from work.As with all financial strategies, be sure to seek qualified advice before making any decisions.

A transition to retirement (TTR) strategy works by enabling you to boost your retirement savings and pay less tax through salary sacrifice.You start by rolling your super savings into a retirement income stream. Then you salary sacrifice your wages to boost your super savings. The portion of your salary that you salary sacrifice will be taxed at 15% instead of your normal income tax rate – which for most people is a tax saving.By salary sacrificing, you’ll receive less money in your take home pay, but you can make up the difference by taking a small income stream from your retirement funds.A TTR is a complex strategy with conditions attached. If you’re not careful, it may result in you having less money to retire on, but done right, it can be a terrific way to boost retirement savings and ease into freedom from work.As with all financial strategies, be sure to seek qualified advice before making any decisions.

Family tax benefit is the correct answer here because it is not a tax concession specifically designed for retirees – it’s designed to support families with the cost of raising children.The Seniors and pensioners tax offset (SAPTO), and the 0% tax rate for account-based pensions are tax concessions for retirees.SAPTO is a tax concession that enables eligible retirees to reduce the amount of tax they are liable to pay – in some cases it’s possible to reduce your tax payable to zero. To claim the SAPTO you need to meet certain eligibility criteria. The Australian Tax Office (ATO) website has further information, including a calculator to work out whether you qualify.

The 0% tax rate for account-based pensions can be particularly beneficial to retirees taking their retirement savings as an income stream rather than a lump sum. This is because the earnings on investments in an account-based pension are tax free, which can be a considerable saving.

Family tax benefit is the correct answer here because it is not a tax concession specifically designed for retirees – it’s designed to support families with the cost of raising children.The Seniors and pensioners tax offset (SAPTO), and the 0% tax rate for account-based pensions are tax concessions for retirees.SAPTO is a tax concession that enables eligible retirees to reduce the amount of tax they are liable to pay – in some cases it’s possible to reduce your tax payable to zero. To claim the SAPTO you need to meet certain eligibility criteria. The Australian Tax Office (ATO) website has further information, including a calculator to work out whether you qualify.

The 0% tax rate for account-based pensions can be particularly beneficial to retirees taking their retirement savings as an income stream rather than a lump sum. This is because the earnings on investments in an account-based pension are tax free, which can be a considerable saving.

While the Seniors Australian Health Care Card will not enable you to enter lotteries at a discounted cost, it does provide seniors with discounts and freebies across a broad range of products and services.

Some of the most commonly used benefits of the Seniors Card are:

- discounts on utilities bills

- free or discounted rates and health expenses like ambulance trips and dental check-ups

- discounted activities like movie or theatre tickets

- some retailers, such as hairdressers or beauticians provide discounted services

- some cafes and restaurants offer discounted meals

While the Seniors Australian Health Care Card will not enable you to enter lotteries at a discounted cost, it does provide seniors with discounts and freebies across a broad range of products and services.

Some of the most commonly used benefits of the Seniors Card are:

- discounts on utilities bills

- free or discounted rates and health expenses like ambulance trips and dental check-ups

- discounted activities like movie or theatre tickets

- some retailers, such as hairdressers or beauticians provide discounted services

- some cafes and restaurants offer discounted meals

You can own assets and still qualify for the age pension, and the list of the types of assets is considerable.

It includes:

Financial: bank accounts, shares, securities, loaned money, gold or silver etc.

Personal belongings: furniture, jewellery, computers, life insurance policies, vehicles, etc.

Managed investments: funeral bonds, property, unit trusts, life insurance, etc.

Businesses: shares in partnerships, trusts, private companies, etc.

The value of these assets is calculated on the amount you’d be able to sell them for, and this amount is taken into account when determining your pension eligibility.

You can own assets and still qualify for the age pension, and the list of the types of assets is considerable.

It includes:

Financial: bank accounts, shares, securities, loaned money, gold or silver etc.

Personal belongings: furniture, jewellery, computers, life insurance policies, vehicles, etc.

Managed investments: funeral bonds, property, unit trusts, life insurance, etc.

Businesses: shares in partnerships, trusts, private companies, etc.

The value of these assets is calculated on the amount you’d be able to sell them for, and this amount is taken into account when determining your pension eligibility.

Retirement planning is one of the most daunting issues facing each of us. Get it right and you can enjoy the next phase of your life living your dream.But getting it wrong may be costly and leave you unable to afford the lifestyle you’ve worked so hard for.

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