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VIEWS: 10 PAGES: 46

									Is semi-retirement your
next career move?
Name
Authorised Representative
RetireInvest Pty Limited Australian Financial Services Licence 238 429
Disclaimer



RetireInvest Pty Limited (ABN 23 001 774 125) holds Australian
Financial Services Licence Number 238429 and is licensed to
provide financial product advice and deal in financial products
such as: deposit and payment products, derivatives, life products,
managed investment schemes including investor directed portfolio
services, securities, superannuation, Retirement Savings
Accounts.

The information presented in this seminar is of a general nature
only and neither represents nor is intended to be specific advice
on any particular matter. RetireInvest strongly suggests that no
person should act specifically on the basis of the information
contained herein but should obtain appropriate professional
advice based on their own circumstances.


                                         1
Agenda


   Our credentials
   Opportunities for 55s and over
   Access to super savings
   How the changes could work for you
   Your lifestyle
   Be prepared
   The value of professional advice




                                       2
RetireInvest: our credentials


    Experienced
      - Over 25 years experience
      - Over 80,000 clients
      - Over $10b under advice

    Professional personal advice

    Advice underpinned by quality research and technical teams

    Over 110 offices nationwide

    Global company




                                     3
Opportunities for 55s and over


   Real opportunities and the ability to choose
    Retire or ease into retirement
    Reduce your hours of work
    Achieve the lifestyle that you want now
    Maintain your standard of living
    Supplement your income with super savings
    Boost super savings while still employed




                                     4
Why did this come about?


   The Government initiative:
    Counters hardship
    Greater flexibility
    Stay in the workforce longer
    Regular and orderly access to super
    Protection from dissipation of super savings




                                       5
What is the change and who qualifies


    For pre-retirees who have reached preservation age of 55 or over
    You can:
      - Reduce work hours;
      - Supplement income by accessing your super earlier

    Provides flexibility

    Some restrictions − use of non-commutable income stream

    Conditions of release for commutations (cashed benefits)




                                      6
Flexibility with conditions


     No limit to the amount of super you can access

     Existing pension products can be used

     Non-commutable (complying) pensions or annuities
       - Can stop pension and return benefits to super fund within six
         months of commencement

     At 65, commute allocated pension and access full benefits. Until then,
      cannot be cashed out as lump sum while working.




                                        7
Flexibility with conditions


    Rollover super (part or all) to long-term, non-commutable income stream
     ‘Long-term’ - it must run for at least your life expectancy

     Income stream options:
         - Non-commutable allocated pension or annuity
         - Non-commutable term allocated pension
             market linked income stream or
             complying income stream

     ‘Non-commutable’ - you cannot make lump sum withdrawals




                                        8
What are the options?


    Allocated pensions
    Term allocated pensions
    Complying annuities
Allocated Pensions


     Regular income e.g. weekly, monthly or quarterly

     Select the level of income you require (within limits)

     Alter income level each year (within limits)

     Income assessed favourably by Social Security

     Account balance not lost on death

     In-built investment options




                             Stay in control
                                         10
Term Allocated Pensions


    Features:

     Tax advantages

     Income paid for set term determined by Pension Valuation Factors

     Social Security benefits
       - Income Test concessional treatment
       - Assets Test partial exemption

     Return of account balance to estate or beneficiary




                                       11
Complying Annuities


   Tax advantages (especially in super)

    Regular, guaranteed income

    Social Security benefits
      - Income Test concessional treatment
      - Assets Test partial exemption

    Paid for specified term or lifetime

   Note: Restrictions on commutations apply


                    No access to your capital
Income products comparison



                                                                          Non
                                  Life / Term     Allocated    Term
                                                                        Commutabl
                                   Annuities      Pensions     Alloc
                                                                           e
    Guaranteed income                                       Option       
    Flexible                                                            
    Life-long                                                           
    Tax concessions                                                     
    Social Security concession                             Depends      
    Access to capital                                                   
    Capital retained on death    Limited option                          
                                   No (life)
    Can exhaust funds                               YES        YES        YES
                                  Yes (term)
                                           13
Case study - supplementing income


    Allan is (62); Full time salary $60,000p.a.
    Super savings $400,000
    Alan has a stress related heart condition

   Objectives
    Living needs - $45,000p.a. (post-tax)
    Reduce Alan’s work hours, go part-time – salary $20,000p.a.
    Retain flexibility
    Retire fully in five years

   Options
    Go part-time and adjust to reduced income
    Utilise changes in legislation and commence non-commutable allocated
     pension
                                         14
Case study - supplementing income


   Allan uses all of his superannuation to start a non-commutable Allocated
    Pension
   Draw $32,000 p.a. income from the Allocated Pension

  Allan’s income
  Salary:                 $20,000
  Alloc Pensions          $32,000
  Tax on taxable income   $11,730
  (incl. Medicare)
  Less 15% rebate         -$ 4,800
  Total tax               $ 6,930
  Net income:             $45,070
                                            Note:
                                 Co-contribution opportunity!!

                                       15
Boost retirement savings


   Salary sacrifice:
    Refers to sacrificing your pre-tax salary into your superannuation fund

    Maximum tax on contributions is 15%

    Surcharge has been abolished

    Personal tax savings of up to 33.5%




                                        16
Case study - boost retirement savings

     Larry 59
     Full time salary $120,000p.a.
     Super savings $500,000
     Plans to work full time to age 65
     Living needs $50,000p.a. & has other assets providing income
     Wants to improve his super and taxation position

  Options
   Roll-over all of super to non-commutable allocated pension
   Start income stream of $50,000 p.a.
   Salary sacrifice $50,000 to super




                                       17
Case study - boost retirement savings


                                                      Salary sacrifice +
                                No salary sacrifice
                                                      allocated pension

    Salary                          $120,000              $70,000
    Allocated Pension              ____-____              $50,000
    Total                           $120,000              $120,000
    Less Tax (excl. Medicare)       ($37,650)             ($37,650)
    Pension rebate                       -                 $7,500
    After tax income                 $82,350              $89,850
    Super contribution                   -                $50,000
    Contributions tax                                      $7,500
    Total tax paid                   $37,650              $37,650


                                    18
Case study - boost retirement savings


   Comparison

   $1,200,000                                                                       Results at age 65:
   $1,000,000
                                                                                    With salary sacrifice -
     $800,000                                                                       $1,035,773
     $600,000
                                                                                    No salary sacrifice -
     $400,000
                                                                                    $823,634
     $200,000

            $0
                    59       60      61       62       63       64       65

    salary sacrifice + AP                    Age

    No salary sacrifice + AP



 Assumptions: salary, Allocated Pension and contributions indexed by 2.5%, net earnings
 in accumulation phase 7% net of tax and 8% in pension phase, 15% contributions tax
                                                        19
Grasp the opportunities


    The Government has provided the opportunity and flexible rules

    It means you can have the future you want:
       - Working fewer hours
       - Following your dreams
       - Improving your health


                    The opportunities are here -
               It’s up to you what you make of them



                                       20
Consider day to day living


  Be prepared
   Living: Day-to-day, like keeping a roof over your head, a car on the
    road, food, bills, car, insurance, etc.

   Life Balance: The things you want to do, like a hobby, giving back to
    the community, further education, relationships, health or other past-
    times.

   Lifestyle: Major lifestyle pursuits, such as overseas trips, home
    renovations, new car/boat.




                                       21
Consider how you will live


  Be prepared
   When do you want to reduce your hours? Can you afford to phase down and
    have sufficient funds when you retire?

   How are you going to get the most out of your superannuation savings?

   What standard of living, life/work balance and lifestyle do you want?

   Will you miss out on the age pension you think you deserve?

   How long do you expect to live?

   Will you outlive your money?




                                       22
Be prepared


  Have a plan – your financial strategy:
   Cash reserves for emergencies
   Ensure income now and income in retirement
   Growth in capital – money for later
   Understand risk
   Plan for the unexpected
The value of professional advice

 The future is uncertain
                              Personal              Economic
   Social                  circumstances             impacts
  security                                                         Taxation
  changes



            CASH                     INCOME                    GROWTH




    Government                                                  Investment
     legislation                    Interest rate                selection
                                      changes
                                           24
The value of professional advice


  Services on offer
                                         Advice on maximising your
   Pre-retirement planning
                                          Government benefits
   Retirement planning
                                         Protecting you from the
   Superannuation advice                 unexpected with insurance
   Investment selection                 Estate planning
   Tax effective investment             Aged care advice




                                   25
The value of professional advice


  How we work with you
   How we can help you?

     Getting all the facts

     Agreeing on the service

     Strategy development

     Presenting our recommendations

     Implementation and ongoing service




                                       26
The value of professional advice


  Matching service to your needs
  RetireInvest advisers are:
   Experts at retirement planning
   Well trained
   Supported by technical experts



  We will:
   Listen to understand your circumstances and goals
   Develop strategies for your consideration
   Flesh out and implement your chosen strategy
   Keep your plan on track


                                     27
Summary of opportunities


 Real opportunities and the ability to choose
  Semi-retire or ease into retirement by reducing your hours of work

  Achieve the lifestyle that you want now and maintain your standard of
   living by supplementing your income

  Boost retirement savings while still employed through tax effective
   strategies like salary sacrifice




                                      28
Live the life you want
     To access these opportunities or
            review your situation
   ask for a personal consultation today

                    The Sooner …
                     The Better.

                          29
Thank you for attending

Add office contact details




RetireInvest Pty Limited Australian Financial Services Licence 238 429
Other Opportunities


   Brad is up to his lump sum super RBL. Jenny has no super.
    Option
     - Salary sacrifice to age based limits. Commence non-commutable allocated
       pension for living expenses, contribute part of salary sacrifice for Jenny as
       super contribution
   Sally,56, starts up her own business. Super savings $400,000
   Start up phase - Commence non-commutable allocated pension with max.
    pension.
     - Reinvest business earnings
     - Two years in, business performing, commute & rollover pension to
       accumulation in super




                                        31
Allan and Jill
additional case studies
RetireInvest Pty Limited Australian Financial Services Licence 238 429
Case study - supplementing income


      Allan is 62 years old
      Full time salary $130,000p.a.
      Super savings $500,000
      Alan has a stress related heart condition

   Objectives
    Living needs - $68,000p.a. (post-tax)
    Reduce Alan’s work hours, go part-time – salary $40,000p.a.
    Retain flexibility
    Retire fully in five years

   Options
   Go part-time and adjust to reduced income
   Utilise changes in legislation and commence non-commutable allocated pension

                                          33
Case study - supplementing income


   Use $450,000 of super fund to start a non-commutable Allocated Pension
   Draw $45,000 p.a. income from the Allocated Pension

  Allan’s income
  Salary:                      $40,000
  Alloc Pension                $45,000
  Tax on taxable income $23,125
  (incl. Medicare)
  Less 15% rebate
  Total tax
                               -$6,750
                               $16,375
                                                    Note:
  Net income:                  $68,625          Co-contribution
                                                 opportunity!!

                                     34
Case study - supplementing income


   Allan is (62); Full time salary $130,000p.a.
   Super savings $1 million
   Alan has a stress related heart condition

  Objectives
   Living needs - $68,000 p.a. (post-tax)
   Reduce Alan’s work hours, go part-time – salary $40,000p.a.
   Retain flexibility
   Retire fully in five years

  Options
  Go part-time and adjust to reduced income
  Utilise changes in legislation and commence non-commutable allocated pension


                                         35
Case study - supplementing income


    Use $600,000 of super fund to start a non-commutable Allocated Pension
    Draw $45,000 p.a. income from the Allocated Pension

   Allan’s income
   Salary:                      $40,000
   Alloc Pension                $45,000
   Tax on taxable income $23,125
   (incl. Medicare)
   Less 15% rebate
   Total tax
                                -$6,750
                                $16,375
                                                     Note:
   Net income:                  $68,625          Co-contribution
                                                  opportunity!!

                                     36
Case study - supplementing income


     Allan is 62 years old
     Full time salary $70,000p.a.
     Super savings $250,000
     Alan has a stress related heart condition

  Objectives
   Living Needs - $39,000 p.a. (post-tax)
   Reduce Alan’s work hours, go part-time – Salary $20,000p.a.
   Retain flexibility
   Retire fully in five years

  Options
  Go part-time and adjust to reduced income
  Utilise changes in legislation and commence non-commutable allocated pension

                                          37
Case study - supplementing income


   Use $250,000 of super fund to start a non-commutable Allocated Pension
   Draw $25,000 p.a. income from the Allocated Pension

  Allan’s income
  Salary:                      $20,000
  Alloc Pension                $25,000
  Tax on taxable income $9,525
  (incl. Medicare)
  Less 15% rebate
  Total tax
                               -$3,750
                                $5,775
                                                      Note:
  Net income:                  $39,225            Co-contribution
                                                   opportunity!!

                                     38
Larry
additional case study slides
RetireInvest Pty Limited Australian Financial Services Licence 238 429
Case study - boost retirement savings


      Larry is 59 years old
      Full time salary $70,000p.a.
      Super savings $250,000
      Plans to work full time to age 65
      Living needs $52,000p.a.
      Wants to improve his super and taxation position

   Options
    Roll-over all of super to non-commutable allocated pension
    Start income stream of $20,000p.a.
    Salary sacrifice $20,000 to super




                                         40
Case study - boost retirement savings


                                                     Salary sacrifice +
                               No salary sacrifice
                                                     allocated pension

    Salary                         $ 70,000              $50,000
    Allocated Pension             ____-____              $20,000
    Total                          $ 70,000              $70,000
    Less Tax (excl Medicare)       ($17,400)             ($17,400)
    Pension rebate                       -                $3,000
    After tax income                $52,600              $55,600
    Super contribution                   -               $50,000
    Contributions tax                                     $ 3,000
    Total tax paid                  $17,400              $17,400


                                    41
Case study – boost retirement savings

   Comparison

  $600,000
                                                                                 Results at age 65:
  $500,000
                                                                                 With salary sacrifice -
  $400,000                                                                       $494,499

  $300,000                                                                       No salary sacrifice -
                                                                                 $398,137
  $200,000

  $100,000

         $0
               59       60        61       62       63      64       65
      Salary Sacrifice + AP               Age
      No salary sacrifice + AP

   Assumptions: salary, allocated pension and contributions indexed by 2.5%, net earnings in accumulation
   phase 7% net of tax and 8% in pension phase, 15% contributions tax
                                                      42
Case study - boost retirement savings


      Larry is 59 years old
      Full time salary $130,000p.a.
      Super savings $500,000
      Plans to work full time to age 65
      Living needs $95,000p.a.
      Wants to improve his super and taxation position

   Options
    Roll-over all of super to non-commutable allocated pension
    Start income stream of $50,000p.a.
    Salary sacrifice $50,000 to super




                                        43
Case study - boost retirement savings


                               No salary sacrifice   Salary sacrifice +
                                                     allocated pension

   Salary                          $130,000              $80,000
   Allocated Pension              ____-____              $50,000
   Total                           $130,000              $130,000
   Less Tax (excl. Medicare)       ($41,800)             ($41,800)
   Pension rebate                       -                 $7,500
   After tax income                 $88,200              $95,700
   Super contribution                   -                $50,000
   Contributions tax                                      $7,500
   Total tax paid                   $41,800              $41,800


                                   44
Case study – boost retirement savings

   Comparison

  $1,200,000
                                                                                 Results at age 65:
  $1,000,000
                                                                                 With salary sacrifice -
    $800,000
                                                                                 $1,035,773
    $600,000
                                                                                 No salary sacrifice -
    $400,000                                                                     $823,634
    $200,000

            $0
                   59       60      61      62       63      64      65
     salary sacrifice + AP                  Age
     No salary sacrifice + AP

   Assumptions: salary, allocated pension and contributions indexed by 2.5%, net earnings in accumulation
   phase 7% net of tax and 8% in pension phase, 15% contributions tax
                                                      45

								
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