Many people are also concerned about whether or not they have saved enough super. A transition to retirement strategy can help you ease into retirement and boost your super in a tax effective way.

What is a transition to retirement strategy?

Transition to retirement strategies are designed to give you greater flexibility as you move towards retirement. Once you reach what’s known as your ‘preservation age’, you can access your super by drawing a pre-retirement pension (a regular income stream drawn from your super savings).

What is a pre-retirement pension?

A pre-retirement pension allows you to draw a regular income from your super while you’re still working, provided you have reached your preservation age. There are restrictions on accessing your super as a lump sum during this pre-retirement phase.

Why start a pre-retirement pension?

A pre-retirement pension gives you the flexibility to draw down an income and at the same time contribute to your super, eg through salary sacrifice, in a way that may be more tax effective
than just relying on your salary. In most cases, you’ll pay less tax on your pension income than you would on the same amount of salary or wages.

Do I have to stop working to draw a pre-retirement pension?

No. In fact, transition to retirement strategies are generally most effective when you continue to work and contribute to your super while you draw a pre-retirement pension.

If you would like to ease your way into retirement, a transition to retirement strategy could enable you to reduce the number of hours you work or retire part time. While working less will mean a smaller pay packet, if you decide to take out a pre-retirement pension, you could supplement your work income with the pension payments. This would give you more time to do the things you want, while maintaining your income and lifestyle.

A transition to retirement strategy could also be beneficial if you have reached your preservation age but want to continue working full time. The tax concessions on offer can make this a great way to boost your super balance in the years before you enter full retirement.

For more information

For some answers to the questions above – download the Transition To Retirement Fact Sheet provided by Financial Wisdom – or contact Rebecca Newton using the form below.

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Before you do, there are many factors to consider, including your eligibility, the costs involved and the effect on your finances and lifestyle.

Get some answers about the financial options for residential aged care from Rebecca Newton and Prestige Wealth Partners.

Important questions about residential aged care

• What is residential aged care?
• What care and services are provided?
• How much does it cost?
• How do I enter an age care facility?
• What are the assessments?
• How are assets assessed for aged care?
• What affect will age care fees have on my pension?
• Are there any tax offsets available?
• How can financial advice help?

Rebecca Newton and Prestige Wealth Partners can help!

For some answers to the questions above – download the Residential Aged Care Fact Sheet provided by Financial Wisdom – or contact Rebecca Newton using the form below.

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Prestige Wealth Partners can help you navigate the maze of Social Security programs and entitlements.

How much do you know about Social Security in Australia?

• What is Centrelink?
• What is the Age Pension?
• What is the Service Pension?
• What is Newstart Allowance?
• How does the income test work?
• How does the asset test work?
• What is Family Tax Benefit? Part A and Part B?
• What concession cards are available?

Speak to Rebecca Newton and let Prestige Wealth Partners remove the confusion about Social Security in Australia.

For more information – please download the Introduction to Social Security Fact Sheet provided by Financial Wisdom or contact Rebecca Newton using the form below.

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It’s important to understand more about SMSFs to determine if this option is right for you.

What is an SMSF?

SMSFs are sometimes referred to as ‘do it yourself’ super funds. Like other super funds, SMSFs invest contributions from members, provide benefits to those members on retirement and provide death benefits to beneficiaries in the event of the member’s death.

The principal difference between SMSFs and other types of superannuation funds is that the members of an SMSF are also the trustees, or directors of a corporate trustee. Amongst other things this means they are required to prepare and implement an investment strategy for their fund and manage the payment of benefits.

SMSFs also provide wider investment choice than other super funds, with options such as direct property, managed investments and direct shares included.

The members of an SMSF must appoint approved auditors, and may also choose to involve tax agents, accountants and financial planners. However, the ultimate legal responsibility for the fund’s ongoing compliance rests with the individual trustees.

What are the advantages of SMSFs?

SMSFs offer a range of benefits, including:

• increased control over your retirement funds and how they are invested;
• wider investment choice than public offer funds;
• the scope to use 100% of the fund’s assets to acquire business’s real property and lease it back to the business;
• your SMSF can move with you from job to job;
• may provide a range of options for estate planning and benefit payments.

What are the drawbacks?

• Each trustee bears a high degree of responsibility to ensure that their trustee duties are performed and exercised in the best interests of fund members;
• There is a risk of tax penalties if the fund becomes non-complying;
• Running an SMSF can be demanding and time consuming;
• SMSFs incur a range of extra costs, eg auditing of accounts, tax and regulatory return administration and supervisory levies.

Prestige Wealth Partners can:

• Determine if a self-managed superannuation fund (SMSF) is an appropriate investment structure for you.
• Establish your self managed superannuation fund and arrange for a trust deed to be prepared and a Tax File Number and ABN are registered for the SMSF.
• Prepare and review your fund’s investment strategy taking into account your risk profile, income tax minimisation and estate planning preferences and possibilities.
• Assist you transferring your benefits from your existing superannuation funds or overseas pension accounts into your self managed superannuation fund.
• Help you minimise tax and maximise your superannuation contributions
• Arrange pensions and lump sum payments from your SMSF.
• Keep you informed of changes to relevant legislation and its impact on your self managed fund.
• Refer you to an experienced SMSF with discounted rates

Speak to Rebecca Newton and let Prestige Wealth Partners help you maximise your superannuation opportunities.

For more information about self managed superannuation funds – and any other form of superannuation investment product – please download the Introduction to SMSF Fact Sheet provided by Financial Wisdom or contact Rebecca Newton using the form below.

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