This video looks at several important aspects you may want to explore as you transition to retirement. You can watch the video here or read the transcription below.
By the time you are 55, you might be thinking about retirement and what to do once you stop working. If you are five to 10 years from retirement you have probably already started to map out your goals.
Here are a few important aspects you may want to explore as you transition to retirement:
- Make more tax-effective super contributions.
- Reduce your work hours yet maintain your income.
- Turn redundancy into retirement – explore ways to use your redundancy package and what effect it may have on your overall financial portfolio.
- Make property part of your retirement plan – the equity in your home can form a foundation for your retirement fund.
- Calculate your potential income streams.
- Understand concessional contribution caps – there is a limit to how much contribution can be made tax effectively.
If you are already 56 years of age, you can start drawing on your super through an income stream (even if you’re still working) with a Transition to Retirement strategy (TtR). This strategy can benefit you by allowing you to:
- Maintain your income with even more going into super
- Reduce your work hours without reducing your after-tax income
- Make personal deductible and/or salary sacrifice contributions that are taxed at 15% instead of your marginal tax rate.
As with all financial strategies, it pays to talk to a professional. A TtR strategy can be complex and needs to be monitored to ensure that its benefits are realised.
To discuss your transition to retirement strategy, contact us to book a free initial consultation with a Blueprint Wealth financial advisor today.
This video contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. If you decide to purchase or vary a financial product, your financial adviser, AMP Financial Planning Pty Limited and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/or a percentage of either the premium you pay or the value of your investment. Please contact Blueprint Wealth on (08) 9423 0300 if you would like more information.