• Considering retirement?

  • With the right combination of superannuation and pension plans, retirement can be a time to really look forward to.

    When planning for your retirement, there are a number of factors you need to consider.

    1. Where you will live? Thinking about making a ‘sea change’ or a ‘tree change’? You need to carefully consider all the pros and cons before moving.
    2. How will you ensure your health needs are met? Will your local area provide adequate health services? Should you keep any private health cover?
    3. How will you occupy your time? After a well-deserved break, you will find you have many more hours each week to fill.

    Of course, one of the major issues, and one we can help you with, is deciding how you'll fund your retirement.

  • Funding your retirement

    Will you have saved enough money to retire comfortably as soon as you want to?

    There are various options for how to fund your retirement and many retirees combine a number of these.

    1. Most Australians will be eligible for either a full or part Centrelink Age Pension.
      • The Age Pension is designed to alleviate poverty and provides only a modest retirement income.
      • If possible, it's a good idea to supplement your Age Pension with another source of income.
    2. Many retirees hold investments such as rental properties, shares or term deposits.
      • These types of investments can either supplement the Age Ppension or completely replace it (depending on your level of assets).
    3. You can choose how your superannuation is paid.

  • Using your superannuation

    How you use your super in retirement will depend on a number of factors, including how much super you have saved and whether you have any investments outside of super.

    It is worthwhile taking the time to work through your options, as making the right decision could save you tax and allow you to receive a higher Centrelink Age Pension.

    If you need advice that is tailored to your particular circumstances, an Australian Catholic Superannuation financial planner can help you.

    Options for your super include:

    1. Leaving your money in your super account, and withdrawing cash as you need it.  
    2. This option provides flexibility and you generally won’t pay tax on your withdrawals if you are aged 60 or over. However, your investment earnings will be taxed at 15% within the super fund – the return you receive is after tax.

    3. Withdrawing your money from super and banking or investing it.
    4. Depending on your income, you may have to pay tax on the earnings from investments outside super. So when comparing this option with leaving your money in super, remember to compare the after-tax returns.

    5. Converting your super into an income stream called an account based pension.  
    6. Investment earnings are tax-free for account based pensions, whereas investment earnings for transition to retirement pensions are taxed up to 15%. If you are aged 60 or over, your payments will generally also be tax-free.

  • How we can help

    Australian Catholic Superannuation can provide:

    • An account-based pension for when you retire
    • A transition to retirement account-based pension, while you are still working. This allows you to access up to 10% of your new pension account balance – you could use these funds for any worthwhile purpose, such as:
      • Paying down your mortgage or credit card debts ahead of retirement,
      • Using the extra income to maintain your income while reducing your hours of work, or
      • Increasing your salary sacrifice into super.

    Find out more about meeting a condition of release which determines when you can gain access to your super.

    You can also attend one of our free retirement planning seminars to help you better understand your options.