Over 55

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					OVER 55?
Take advantage of
transition to retirement
                    These days there are some really great
                    pre-retirement options for people over 55
                    In the past, most people faced the all or nothing approach to
                    retirement. Today, we’re able to have much more flexibility when it
                    comes to retirement through transition to retirement.
                    A transition to retirement strategy could enable you to make the most of
                    your super or your lifestyle in the lead up to retirement. You need to be at
                    least 55 years old to take advantage of a transition to retirement strategy.
                    There are a couple of options to choose from - read on for how they work.

                                         If you are over 55, our checklist
                                         can help you decide if this
                                         strategy might be for you...
                                                 I am still working
                                                 I have at least $30,000 in super
                                                 I would like to keep working but
                                                 reduce my hours to spend more time
                                                 enjoying life (with the same income)
                                                 I would like to keep working the same
                                                 hours but boost my super

                 If you checked any of these boxes, chances are that you are eligible for a
                 transition to retirement strategy. This booklet shows you how a transition
                 to retirement strategy works and when you’re ready we can help you take
                 advantage of these options.

    This brochure is issued by Quadrant Superannuation Pty Ltd ABN 82 067 516 938 under our Australian Financial Services Licence no.
    290812. It is of general nature only and does not take into consideration your investment objectives, particular needs or financial situation.
    These should be considered before investing and investors should consult a financial advisor. It does not constitute, and should not be
    relied on as financial or investment advice or recommendation (expressed or implied). Quadrant does not represent or guarantee that the
    information is accurate or free from errors or omissions and Quadrant disclaims any duty of care in relation to the information and liability
    from any reliance on investment decisions made using the information. Quadrant accepts no responsibility for any loss, cost or expense
    arising from use of the information on the website.
    You should consider the Product Disclosure Statement before making a decision to join or remain a member of the Quadrant
    Superannuation Scheme. Please contact us on 1800 222 209 to obtain a free hard copy of our Product Disclosure Statement. Personal
    financial advice is provided by Quadrant First Pty Ltd AFSL no. 284443.
           1   Boost your
               super savings
               Get more money into your super account
               before you retire.
               Transition to retirement offers an extremely effective
               strategy to super charge your savings in the lead up to
               retirement. It’s good for reducing the amount of tax you
               pay and keeping the same take home pay.

       n   2   Reduce your work,
               not your income
               Semi-retire and spend longer doing the
               things you love.
               Transition to retirement allows you to cut back your
               working hours to sample retirement while you take
               some of your superannuation as a pension. This gives
               you more time with the grandchildren, to travel or enjoy
               long lost hobbies, while keeping the same income.

           n   1     BOOst your
                     super savings
          By age 55 you may have thought the years of boosting your
          super before you retire had passed. If you look at your super
          account and think there ‘s still not quite enough, transition
          to retirement is an effective way to boost your savings while
          you’re still at work. This option involves salary sacrificing part
          of your regular income into super. By doing this you only pay
                                   15% tax rather than your marginal tax
                                      rate. You can then supplement
                                         your current income by drawing
                                            money from your super
                                               savings, through a super
                                                  pension account.

Jane’s a winner!
Jane contributes more to super, saves
tax and keeps the same income.
Jane is 60 and is thinking about all the things she’d like to do in
retirement… overseas travel, upgrade her car and maybe even
renovate the kitchen. She would like to have financial peace of mind
and not have to worry about every bill that arrives in the mail. This
option allows Jane to continue working the same hours and salary
sacrifice part of her regular salary into super, supplementing the
sacrificed amount by accessing funds from her super.

A Quadrant First financial advisor explained that because of the
way super is taxed, Jane does not have to draw as much out of
her super as she pays in because the tax is only 15% (instead of
her usual tax rate).

Jane’s smiling because she is able to

maintain the level of income she is used

to while her retirement savings are

building up faster.

    This option can be accessed
    when you reach preservation
    age (55 for most people but this   A Quadrant First financial advisor
    is increasing over time and may
                                       saved me time and provided
    be 60 if you were born after 30
    June 1964).                        valuable advice by crunching the
    You can continue working           numbers to see if it was the best
    the same hours but salary
    sacrifice part of your regular     strategy for me. Now I’m really
    salary into super.
                                       pleased with the boost to my super.
    Your current income is
    then supplemented by                  S.F - Burnie.
    accessing funds from your
    super savings.

    You may also be entitled to
    receive a tax offset of up to
    15 percent on income regularly
    received as a super pension.

    Investment earnings and
    capital gains on the assets
    used to fund your pension are
    effectively tax free.

    If you are over 60 you don’t
    pay tax on the income
    you receive from a
    pension (as long
    as your money is
    in a taxed
    super fund).

How does this option work?
Jane is 60, has $200,000 in super and wants to increase her super
savings. Jane has a salary of $60,000 and due to her lifestyle
commitments needs around $40,000 after tax per year. She is already
salary sacrificing 17.5% of her pay to super. Let’s see how a transition to
retirement strategy could benefit Jane:

                  Gross                   Less salary    Taxable      Less Tax &   Annual
                  salary                  sacri ce       income       Medicare     net salary

      SITUATION    $60,000                  $10,584       $49,416      $9,416      $40,000

     TRANSITION    $60,000    $20,000       $37,125       $22,875      $2,875      $40,000

                             Jane will now need to access her super
                             to maintain the same income

Why this works
Receiving income from a pension is more beneficial to Jane than her
normal salary because it’s tax free. This allows Jane to put an extra $2,560
after tax into her super and keep the same take home pay.

Other things to think about
                                         Less worth
If access to capital is an issue for you it issalary bearing in mind
                                                              Less Tax &
                                                              Medicare levy
that while this strategy is in place thesacri ce pension is non-
commutable (which means you can’t take it as a lump sum) and your
superannuation balance is preserved. You can only access your super
as a regular income capped at 10% of the account balance per year so
you may need to set aside money in a non-superannuation investment
for unforseen circumstances while the transition to retirement strategy
is in place.

Don’t put it off - call us today! Your Quadrant First financial
advisor can fill you in on more details about this option.
Call 1800 222 209 to make an appointment.

           n   2    Reduce your
                    working hours,
                    not your income
         In the past, most people faced the all or nothing approach to
         retirement. But thanks to different rules, you now have more
         flexibility and choice in your pre-retirement years. If it’s time to
         take a step back from your full time job and scale back your
         hours to get a taste of what retirement might be like, this option
         might be for you.

         Bill’s job description now expands to

         captain of his grandson’s pirate ship…
         Bill is 55 and now works part time. He was able to reduce his hours
         after negotiating with his employer and now spends Thursdays with
         his grandson sailing the high seas (and landing the occasional fish)
         and Fridays on the golf course. His working week has reduced but
         his income has remained the same.

         Bill’s never felt so relaxed!

Transitioning has allowed
Bill to spend more time
doing his own thing and
take a gradual approach to
retirement. By accessing
his super he has been
able to keep the same level of
income but work less hours.

    There are no set hours that
    you have to work.
                                       Transition to retirement has
    Your super can only be
    taken as a pension.                let me test drive retirement
    You can withdraw a regular
                                       and given me lots of freedom
    income but not a lump sum (it’s
    designed to supplement income      and flexibility. I’ve now got an
    rather than drain your savings).
                                       idea of what it might be like
    Once you turn 65 or
    permanently retire, your           to take the plunge and retire.
    pension will turn into a
    normal income stream                G.T - Kingston
    which has more flexible
    payment rules.

     How does this option work?
     Bill is 55 and wants to cut back on his working week from five
     days to three days while maintaining the same income. He has
     $250,000 in super and earns $50,000 a year. Bill can use his
     existing super to start a pension and draw sufficient funds to meet
     his income needs.
                  Gross                    Taxable         Less Tax &                 Annual
                  salary                   income          Medicare                   net salary
                                                           levy                                    Bill receives a
                                                                                                   tax offset of
    SITUATION      $50,000                   $50,000         $9,600                    $40,400     15% which
                                                                                                   reduces his tax
   TRANSITION      $30,000    $16,407        $46,407         $8,468      $2,461        $40,400

                             Bill will now need to access his super     Add pension
                             to maintain the same income                offset

     Why this works
     Because Bill is under 60 the income received from a super pension
     is more tax effective as he is entitled to a tax offset of 15% on
     the taxable component. In Bill’s case, he takes a pension of
     $16,407 and his tax is reduced by $2,461 ($16,407 x 15%).
                                            Less salary                  Less Tax &
     Other things to think about
                            sacri ce                                     Medicare levy

     This calculation does not take into account the effect that
     reducing your hours has on your employer’s superannuation
     payments into your super account.
     Being over 50 years of age, the maximum annual amount that
     you can contribute at the 15% concessional tax rate (employer
     contributions plus salary sacrifice) is $50,000.

                Call 1800 222 209 to make an appointment with a
                Quadrant First financial advisor - they can help you
                decide if this strategy will work for you.

  Call the super Hotline:

  1800 222 209
    Drop us a line at:
 Quadrant Superannuation
      GPO Box 863
     Hobart TAS 7001

         see us at:
  Level 5/85 Macquarie St
     Hobart TAS 7000

       Email us on:

     Log on to us at:

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