Transition into Retirement
You have reached a significant milestone in your life, you are retired. What do you do now to ensure that the hard earned superannuation you have built up, continues to provide the standard of living you are use to.
What can Superannuation offer you? Lower taxes and more investment options – such as local and international shares, property and fixed interest investments.
Here are a few questions that you may have been asking yourself, that Pennywise Investments can help you answer.
• Where should I invest my money?
Should you leave it in super or start an income stream? Take the annuity or pension? How good are Retirement savings accounts?
• Do I pay tax in retirement?
It depends on how the money went into your super, how you take money out and how old you are. We look at ways to minimise the tax impact.
• How much can I withdraw from super?
What are the minimums and maximums you need to be aware of?
• Make your money last.
Do you have the right asset mix? Have you structured your finances to maximise government benefits? Do you have any outstanding debt?
Pennywise Investments can help you:
• By obtaining the best retirement strategy for you with a selection of investment options.
• Choose the best retirement super fund for you.
• Consolidate your super.
Are you eligible for government benefits?
For the majority of people, the Age Pension is considerably less money than they are used to living on and would like to receive during their retirement years.
The Australian Government Age Pension is designed to be a safety net for people who cannot fully provide for themselves financially in retirement. However, for the majority of people, the Age Pension is considerably less money than they are used to living on and would like to receive during their retirement years.
From the experts:
When determining your eligibility to receive the Age Pension, Centrelink applies two forms of assessment the 'income test' and 'asset test'. Centrelink uses whichever test provides the lowest rate of pension payments. Understanding how the tests apply can be complex.
What you need to know
There are many different strategies available to organise your finances in retirement in order to qualify for a part or full Age Pension. Quite often, people who don't think they qualify find that they can claim a part or full Age Pension after receiving professional financial advice.
Even if you don't qualify for the Age Pension there are also other benefits available such as the Commonwealth Seniors Health Card (CSHC). The CSHC provides a range of benefits, such as discounts on public transport and pharmaceuticals to self-funded retirees who do not qualify for the Age Pension but meet other eligibility criteria.
Determining whether you are eligible for benefits can be a difficult and time consuming process so make sure you have access to expert help.
Pennywise Investments can help you:
• Evaluate whether you are eligible for benefits.
Estate planning gives you peace of mind that your affairs will be in order if you die unexpectedly or become unable to manage your affairs.
Wills
A will sets out how you want your estate to be managed and distributed after your death. Without a will, management of your estate can be costly, time consuming and distributed according to state based legislation. It’s important to have a valid will and to review it regularly to make sure it is still in line with your intentions.
Enduring Power of Attorney
If you were to become incapable of handling your affairs, control of your assets could revert to a person appointed by a court.
It would be more useful if you had an enduring power of attorney set up now so that if you cannot manage your affairs, someone you trust and have chosen to act for you, can make the important decisions affecting you and your affairs.
Guardianship
A guardian can make decisions regarding where you live and your medical care if you lose the capacity to make your own decisions. Medical care decisions are aided by you completing an Advance Health Directive – this document contains treatment decisions made by yourself in respect to your future health treatment.
What happens to my super and insurance when I die?
The death benefit is usually paid to your nominated beneficiaries. The superannuation balance is transferred into the Cash option on notification of your death. The balance will be paid depending on who you have nominated as beneficiaries.
Who can be my beneficiary?
If you are insuring through your superannuation, you need to understand the difference between binding and non-binding beneficiaries and issues to be aware of.
If you have insurance outside of superannuation, you can nominate anyone to be a beneficiary.
Pennywise Investments can help you:
• Prepare Enduring Powers of Attorney.
• Preparation in partners with our preferred legal practitioner of wills.
• Electronically store all estate information.
We base our investment advice on the sound principles of our evaluation process, which meets your chosen risk profile. This may vary from conservative to high risk.
An annuity is a simple, secure financial product that guarantees a series of payments, for a fixed term or for life, in return for an upfront investment.
The earning rate is fixed at the outset, and this applies for the length of the annuity, regardless of share market movements or interest rate fluctuations.
Capital can be returned at the end of the agreed term or gradually during the term of the annuity as part of the regular payments.
Unlike many other products, annuities carry no product fees. That is, they do not charge management, administration, performance, entry or exit fees.
Annuities have a number of features that can be tailored to suit different needs. The main features are as follows:
• Term
• Earning rate
• Payments
• Residual capital value (RCV)
Pennywise Investments can help you:
• With a range of annuity options.
Unit 1/14 Carey St, Bunbury WA 6230
Telephone: 08 9791 9113
Facsimile: 08 9791 9114
Email: pwi@pennywiseinvestments.com.au
P.O Box 1376, BUNBURY WA 6231
Information published on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in this document is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs. Kingsace Pty Ltd ABN 82 083 163 697 t/a Pennywise Investments is a Corporate Authorised Representative of Infocus Securities Australia Pty Ltd ABN 47 097 797 049, who holds an AFSL and Australian Credit Licence No. 236523.
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