Approaching retirement

For many years, you’ve been working hard…and you’re starting to think that it would be nice to take your foot off the pedal.

It is good to know that an increasing percentage of your earnings has been paid into a super fund on your behalf since 1992. What’s more, between now and your retirement this percentage is going to be increasing as well, due to changes in the superannuation contribution rules. This figure will eventually reach 12%.

Even though most Australians have had compulsory super for many years, many people still wake up one day in their fifties and panic about how to accumulate the amount that they need to retire.

So how much do you need to retire comfortably?

That depends on your the lifestyle you wish to have…

Step 1. The Government’s Money Smart website has a calculator to get help you, and to get you thinking (link). As a “heads-up”, you might be surprised to learn that it has been calculated that for a couple who own their own home to retire “comfortably” you will need about $1,000,000 in capital.

Step 2. is to take a look at your current superannuation balance. Ask your spouse to do the same. How has your fund performed? What are you invested in? What are the fees like? You may be unpleasantly surprised to find that high fees may be deducted, regardless of the performance of your fund.

Step 3. is to consider how you might do better.

For instance:

  • If you are invested in more than one fund, you might consider transferring your balances into one fund to save on fees.
  • If you haven’t done so already, you might consider setting up a self managed super fund to give you greater control and flexibility. You may pool your funds with your spouse and even children of working age. A self managed super fund can have a maximum of four members; however we recommend that that you have a corporate trustee to facilitate changes to fund members at a future stage. Find out about our FREE SMSF Set-Up or restructure offer, when you establish a Discrete Share Portfolio with Clime.
  • Can you increase your super contributions? Following the recent budget, each person over 55 can now contribute $35,000 p.a. (up from $25K) from their wages taxed at 15%. In addition, you can make after-tax contributions of $150,000 p.a. (or $450,000 in a three-year period).
  • Is your current fund manager doing the best job that they can for you? Clime Asset Management through either one of its Individually Managed Accounts, or our listed managed fund, the Clime Australia Value Fund (CAVF) has consistently proven to deliver better returns than the market at large or it’s competitors.
  • Additionally, you can transfer shares and certain other assets into a self managed super fund.
  • You might also consider a Transition to Retirement strategy… Click Here to find out more

The information provided on this webpage and the rest of clime.com.au is intended for general use only. The information presented does not take into account the investment objectives, financial situation and advisory needs of any particular person nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information herein.

Register for our
weekly investing report

Weekly insights, research & market commentary.

* Required fields

View our privacy policy

The information provided on this webpage and the rest of clime.com.au is intended for general use only. The information presented does not take into account the investment objectives, financial situation and advisory needs of any particular person nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information herein. Please consider our Information Memorandum, Product Disclosure Statement and Financial Services Guide before investing in one of our products. Past performance is no guarantee of future returns.
  • Copyright © 2018 Clime Investment Management Limited
CALL 1300 788 568

Sign in to: