Our standard of living in retirement is becoming increasingly dependent on how well we prepare for retirement and, in particular, how well we take advantage of the most tax-effective form of retirement savings – superannuation.
For most people, superannuation will be paid to them as a retirement benefit in either a “lump sum” (which can be converted to a tax-effective retirement income stream) or as a lifetime pension, usually indexed to inflation. In some funds, the member has a choice between the two. This is a very individual decision, and can be quite a critical one.
The right advice for you
Pre-retirement advice from a professional financial planner can be particularly valuable to help you decide how you should take your super benefit, taking full account of all tax considerations and social security entitlements, and to devise an investment strategy to meet your personal needs.
It may also be possible to split some of your super benefit with your spouse, and so maximise your joint after-tax income right throughout retirement. You may even pay no tax at all.
Retirement is one of life’s crossroads. To help you take the right direction, call to arrange a free, no-obligation meeting with a our Financial Planner.