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Retirement Planning is a critical step to ensure financial security and peace of mind in your later years. Navigating your retirement can be complex, you are moving from working to earn the money to live on, to generating retirement income from the assets you have saved up. At MLS Financial in Penrith, we specialise in providing personalised financial advice to help you make the most of your retirement.
Superannuation: The Foundation of Retirement Savings
Superannuation, or super, is generally the cornerstone of retirement planning in Australia. It’s a compulsory system where employers contribute a portion of your salary into a super fund, which is then invested to grow your retirement savings.
Key Benefits of Superannuation:
- Tax Advantages: Super contributions and investment earnings are taxed at a lower rate than regular income, helping your savings grow faster.
- Compulsory Contributions: Most employers must contribute at least 11.5% of your salary into your super, providing a steady stream to grow your retirement savings.
- Voluntary Contributions: You can boost your super with personal contributions, which at the same time, can take advantage of tax incentives or government co-contributions.
Maximising Your Superannuation: Working with a financial adviser from MLS Financial can help you to structure your superannuation to choose the right investment mix, manage your ongoing tax obligations, build wealth, and help to employ the right strategies for your situation.
Account-Based Pensions: Flexible Retirement Income
An account-based pension is a popular way to draw down your superannuation savings once you retire. It offers flexibility and control over your retirement income, as well as tax free earnings on your superannuation balance. To set up an account based pension, you need to meet a condition of release.
Advantages of Account-Based Pensions:
- Flexible Withdrawals: You can choose how much (subject to legislated minimums) and how often to withdraw from your pension account, providing a regular income stream that is administrated by your super fund.
- Tax-Free Income: For individuals over 60, withdrawals from an account-based pension are generally tax-free.
- Investment Choice: Depending on your superannuation account, you can select investment options that suit your risk tolerance and retirement goals.
Maximising Your Account-Based Pension: Working with a financial adviser from MLS Financial can help you to structure your superannuation to minimise tax in retirement, to choose the right investment mix, manage your withdrawal rates, and help your pension last throughout retirement.
Age Pension: Government Support in Retirement
The Age Pension is a government-provided safety net for all Australians. The Age Pension is fortnightly income support for eligible retirees. It serves a vital function to ensure that all Australians will have a minimum quality of life in retirement.
Eligibility and Benefits:
- Age and Residency Requirements: You must meet specific age and residency criteria to qualify.
- Means Testing: The Age Pension is subject to income and asset tests, which determine your eligibility and payment amount.
- Supplementary Benefits: Additional benefits, such as the Pensioner Concession Card, provide further financial assistance and discounts.
Maximising Your Age Pension Entitlements: Understanding the income and asset tests is crucial. Strategies like restructuring assets and optimising income streams can help maximise your entitlements and help your assets to last longer in retirement.
Why should I get Financial Advice?
Retirement planning involves complex decisions with long-term implications. Seeking professional financial advice from MLS Financial in Penrith can help you navigate these complexities and make informed choices.
We have helped countless clients to:
- Increase the income they generate from their assets.
- Minimise or eliminate tax in retirement.
- Retire earlier than originally thought.
- Increase confidence to spend comfortably.
- Apply for and increase Age Pension entitlements.
- Reduce investment risk to minimse the impact of financial market movements.
How do we achieve these outcomes for our clients in retirement?
- Personalised Planning: Advice based on your unique financial situation, goals, and risk tolerance.
- Strategic Focus: Expert guidance on maximising your financial situation, structuring your assets appropriately to minimise tax, maximising Age Pension entitlements and choosing the right investment portfolios for you.
- Ongoing Support: Annual reviews to provide advice when your circumstances change and your financial plan requires tweaks.
If you want to discuss any Retirement Planning strategies, including generating income from your assets, or if you are able to retire, contact MLS Financial today through our online contact form or on 1300 791 800.
Disclosures:
- This information has been compiled from sources considered to be reliable, but is not guaranteed.
- The information contained on this website is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. MLS Financial and Infocus Securities Australia Pty Ltd strongly suggests that no person should act specifically on the basis of the information contained herein but should seek appropriate professional advice based upon their own personal circumstances.
