Mondy Financial Services

Regardless of your starting point, there are things you can do to maximise your retirement benefits. Basically, the more assets, the less debt, the more retirement income.

According to Association of Superannuation Funds of Australia this is the amount you need for retirement.

 

Comfortable retirement

Modest retirement

Age Pension

Single

$43,687 

$27 902

$24,552 

Couple

$61 909 

$40 380

$37,014 

 

We are often asked “How much money do I need to produce this income?”

Single: $485 000 for a comfortable retirement (includes Age Pension)

Couple:  $690 000 for a comfortable retirement (includes Age Pension)

As you can see you will need some extra funds to give you a more comfortable retirement.

How to generate extra funds?

Risk & Reward are Always Related – We call it the ‘Sleep at Night’ test.

The higher the risk, the higher potential returns (and losses).

You need to decide which blend of investments matches your attitude to risk.

Growthy (risky) investments include: Australian Shares, Overseas Shares and Listed Property

Defensive (safer) investments include: Cash, Fixed Interest and Term Deposits

 

Cash

100% defensive

Mod Conservative

40-60% growth

Balanced

60-75% growth

High Growth

80%+ growth

Best 1 yr return

7.8

17.1

22.8

33.5

Worst 1 yr Return

0.7

-10.6

-18.1

-31.2

20 years to Sept 2020

Why is Super such a good investment?

As you approach retirement age you might consider putting more into your super account. After the age of 67 (or 60 if you retire or change jobs) your super can be in a tax free account – no tax on growth of your super and no tax as you pull it out.

Money can be added to super in 2 ways

  • Concessional Contributions (Subject to Limits) –
    • Salary Sacrifice and save income tax
    • tax deductable personal contributions and save income tax
  • Non-Concessional Contributions (subject to limits)–
    • Up to $300K after tax contribution
    • Downsizer contribution up to $300K (each) when selling home after age 65

Super Fees matter

All funds offer the same kind or investment options therefore you have the potential to make the same return in each fund. What can make a difference are the fees you pay.

For example:

  • If you have $100K in a super fund costing 2% it will cost you $2,000 pa in fees
  • If you have $100K in a super fund costing 0.4% it will cost you $400pa in fees meaning you’ll have an extra $1,600pa in your fund to grow towards retirement.

Some common decisions which can help you maximise your retirement benefits.

  • Too much or too little insurance – we can help you decide the right amount for you.
  • Property – whether this is the right decision for you and how to structure your investment debt.
  • Over age 65 and paying income tax – we can help you minimise or eliminate income tax altogether
  • Centrelink – Age differences – there are strategies to help you maximise Centrelink benefits for the older partner
  • Defined Benefit Pensions – are they the perfect choice for all?

Click here to see Adam's video on this topic

https://www.facebook.com/rita.merienne/videos/4646453795396369

Note: This information is general, before acting upon any of these ideas you should seek professional advice to make sure it suits your personal circumstances. If you’d like help determining the best way to increase your retirement funds why not contact me today on 0431 517 455 or email me at This email address is being protected from spambots. You need JavaScript enabled to view it.