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You want to enjoy your retirement and the easiest way to achieve this is to plan for it carefully. Approaching retirement you’ll start to think of the following:
- How much money do I need in retirement?
- Will I have enough money in retirement?
- Can I afford to retire?
- How do I structure for retirement?
- What do I do when I reach retirement?
People are retiring earlier than ever before so the sooner you get started the better you may be able to afford to live in retirement. The longer you are in the market the longer your investments will be working for you.
Today you know where your income is coming from but do you know where it will come from in retirement? The money you live on in retirement will likely come from your super, a pension, personal savings/investments and or part-time work.
The standard rule is that in retirement you’ll need approximately 60% of your annual income that you earned before you retired. Think this is a lot? Well remember you’ll have more time to accomplish all the things you wanted to do before you retired and you’ll want to be able to afford them. The longer you spend in retirement the more money you’ll need.
Remember ... a Government age pension will not replace the majority of your income in retirement and many people feel the future of our current system is uncertain. This is why your personal savings are becoming a more important part of the retirement equation.
Transition to retirement
In February 2004 the Federal Government released a policy document titled “A more flexible and adaptable retirement income system”. This document announced the changes to the rules which regulate the way Australians build and withdraw their super benefits and were designed to help you stay in the workforce longer ad make a gradual transition to retirement easier.
With these changes the Federal Government have made the transition to retirement easier as when you turn 55 you can work and still access some of your Super benefits giving more freedom and flexibility.
Small business – what is your accumulation and exit strategy?
If you are a small business owner you may be eligible for the capital gains tax retirement exemption. This means you may choose to use the proceeds from the sale of your small business for your retirement, and you might pay no tax on the capital gain.
However, if either you (or your spouse) are under 55 years old prior to receiving the sale proceeds you will only qualify for this exemption if you roll over the amount into either a complying super fund, ADF or Retirement Savings Account.
To find out more contact your Thornton Group adviser.
Releasing of capital
Successful retirement does not happen by chance it takes years of planning. Let Thornton Group’s team of highly skilled and experienced people guide you by designing, constructing & implementing a tailored plan to give you peace of mind in ensuring you have enough.
Don’t worry about having enough money in retirement, we will do it for you!