Retirement planning is something that is never too early to start. It is commonly know that if we don’t plan part of our life, we might not get to where we want to be. Read about current baby boomers dark retirement situation.
We are here to assist you turn your retirement goals into reality. There are many options when it comes to retirement planning and we offer expert advice in the following areas:
Transition to Retirement Pensions (TRIP) allows over 55’s to keep working part time, while drawing down some of their super benefits and supplementing their salary in the form of a pension or income stream. Other advantages are that there is less tax, super funds can be boosted through salary sacrifice and retirement can be eased into.
An account-based pension (also known as an allocated pension) is a regular income that you receive in your retirement or when you reach preservation age. It is drawn from your super benefits and provides the security of regular payments.
So why are allocated pensions so popular? Why don’t retirees just withdraw their funds out of super and dump the lot into a term deposit or savings account, or even use their super to buy other investments such as an investment property or shares?
The major reason here is tax. Allocated pensions save you tax compared to most other strategies in retirement. That’s because any investment earnings in an allocated pension – interest, dividends, capital gains – are tax free (age 60 and above). In comparison, interest made on a term deposit or rent received on an investment property held outside the super environment are subject to tax at the retiree’s marginal tax rate.
Salary sacrifice is an agreement with an employer, where an employee agrees to forego or “sacrifice” part of their future salary or wages in return for their employer providing benefits of a similar value. Subject to the agreement, an employee can sacrifice their salary or wages into a variety of benefits, including superannuation.
Having super contributions setup under an effective salary sacrifice arrangement, can mean many benefits such as:
You can purchase an annuity (also known as lifetime or fixed-term pensions) from a superannuation fund or life insurance company using your super or other savings.
The income you will receive is fixed when you purchase the annuity. Your income can be indexed to increase each year, either by a fixed percentage or in line with inflation.
Income payments can be made monthly, quarterly, every 6 months or annually.
It is your choice as to the term of the payments when you purchase the annuity. They can be either the rest of your lifetime or for a fixed number of years.
I offer appointments on Saturdays by arrangement.
8 Gray Street
Ipswich QLD 4305
07 3424 7882
Once you hit retirement, there is undoubtedly more time for leisure, holidays, volunteer work in the community, i.e. Meals on wheels. Therefore, maximising government entitlements through receiving an income stream from your superannuation can contribute to greater freedom and peace of mind.
If you are past pension age but still working, there is the possibility that you can benefit from the Work Bonus Scheme.
If you are eligible, the first $250 of employment income is excluded from assessment under the income test for the age pension.
Protective testamentary trusts are where the beneficiary must take their inheritance via the trust and does not have the option to appoint or remove trustees. This setup is useful when the beneficiary is not in a position to responsibly manage their inheritance due to age, disability or spendthrift tendencies.
Executor gives the beneficiary the option to take all or part of their inheritance via testamentary trust. The primary beneficiary has the power to remove and reappoint the trustee and they can appoint themselves to manage their inheritance inside the trust.
An account-based pension (also known as an allocated pension) is a regular income that you receive in your retirement or when you reach preservation age. It is drawn from your superannuation benefits and provides the security and peace of mind of regular payments.
So why are allocated pensions so popular? Why don’t retirees just withdraw their funds out of super and dump the lot into a term deposit or savings account, or even use their super to buy other investments such as an investment property or shares?
The major reason here is tax. Allocated pensions save you tax compared to most other strategies in retirement. That’s because any investment earnings in an allocated pension – interest, dividends, capital gains – are tax free (age 60 and above). In comparison, interest made on a term deposit or rent received on an investment property held outside the super environment are subject to tax at the retiree’s marginal tax rate.
All advisors at Peacheys Investment Services Pty Ltd hold a wide range of professional qualifications. See our about us page for full disclosure of our qualifications
Peacheys Investment Services Pty Ltd holds an Australian Financial Services License (AFL) 238154 and an Australian Credit License (ACL) 238154.
You will always be speaking to the person who has helped you with your finance advice.
We are paid in the form of fees and/or commissions that are clearly disclosed and agreed upon by both parties.
Tony established Peacheys Investment Services Pty Ltd in 1998 to provide financial advice with a high level of integrity and trust.
It has since grown to two locations with a large service area in Queensland.
2024 Peacheys Investment Services.
