Retirement Planning & Experiences

[hydrabyss]

Super projection calculators which project super balances from retirement over time based on various assumptions including wage inflation/price inflation/ fees/ fund performance/super withdrawals

The wage inflation assumption is 3.7% over the medium to long term and price inflation 2.5% over the medium to long term

At retirement, the price inflation would be the main factor affecting purchasing power. Wage inflation would then be moot.
Any comments?

I would use a higher inflation number to be conservative, although some of the things retirees spend money on may experience less inflation pressure.

 

[JohnK]

So I had appointment with ANZ's financial advisor.

Total waste of time as most on here have mentioned. Did not offer any advice.

So I applied for TTR with Australian Super. As luck would have it I didn't fill out form correctly. Apparently I answered that I had super with Australian Super not another super provider so my TTR application is pending until I send them a form with the missing parts.

And as is always the case with JohnK's luck my super balance has fallen by around $12000 which has scared me. If I take money out of current Super it will leave arpund $30000 balance and very little hope of recovering the $12000. Am I likely to get the $12000 from TTR account? Probably not. I need the money but this little exercise will have to wait for now.

Sigh! All these obstacles. I need a beer or 3 soon. Four days until Thailand trip.

 

[Quickstatus]

So I applied for TTR with Australian Super. As luck would have it I didn't fill out form correctly. Apparently I answered that I had super with Australian Super not another super provider so my TTR application is pending until I send them a form with the missing parts.

Easiest if your TTR is with the same super provider that holds your accumulation account. a TTR is just an account.
Your TTR will continue to earn investment earnings as though it is in the accumulation account - so long as the investment criteria are the same.

 

[Pushka]

And as is always the case with JohnK's luck my super balance has fallen by around $12000 which has scared me. If I take money out of current Super it will leave arpund $30000 balance and very little hope of recovering the $12000. Am I likely to get the $12000 from TTR account? Probably not. I need the money but this little exercise will have to wait for now.

Sigh! All these obstacles. I need a beer or 3 soon. Four days until Thailand trip.

That's everyone's luck right now. I haven't looked at my balances since the war began.

Aus super can be a bit tricky to get stuff sorted but it finally does.

It's quite hot in Thailand right now! Even the staff are commenting.

 

[Quickstatus]

I haven't looked at my balances since the war began.

Yes, often better to not look. Not a good idea to knee jerk and suddenly change investment options within a super fund

 

[andye]

I have a related dilemma.
After inordinate delays, my UK pension funds have rolled over into our SMSF just days before the war.
Sitting in cash at the moment (which has worked out well so far), but when to invest a substantial sum?
Slightly complicated by the fact that although it's smsf, everything has to go through the advisors
Planning on splitting into tranches after the obligatory financial advice comes through

 

[hydrabyss]

Yes, often better to not look. Not a good idea to knee jerk and suddenly change investment options within a super fund

I have very little in super so was not concerned at what it would show so was pleasantly surprised it was only down a small amount like 2.5%.,
I must admit when it comes to super I know very little but in my research on retiring recently came across being able to change investment options.
I do wonder how many people don't use super as part of their retirement plan.

 

[JohnK]

Yes, often better to not look. Not a good idea to knee jerk and suddenly change investment options within a super fund

I look often. That's my motivation. See balance go up, not down but yes everyone in same boat.

I did look at OnePath's TTR product and it didn't excite. Australia Super looked good and if Im not mistaken fees are around $170/year so good to spread my eggs in 3 baskets rather 2 baskets.

@Pushka I don't mind the heat. I can just picture myself sitting in Sports bar after we come back from golf drinking San Miguel light with ice. Then hopefully tend to roses and hydrangeas in village. Will pay brother in law to build a 5th garden bed. Haven't yet decided what goes there but maybe some colourful perennials like mum has in Sydney.

 

[Happy Dude]

"fees are around $170/year"

Is that good, bad or other for TTR or pension account?

Starting to look into these accounts more seriously and not sure what to expect vis-a-vie fees.

 

[Quickstatus]

so good to spread my eggs in 3 baskets rather 2 baskets.

then you are paying 3 fees instead of one.

"fees are around $170/year"

industry funds often much better in fees.
"profits go to members"

But I caution against choosing on just the basis of fees.

 

[JohnK]

"fees are around $170/year"

Is that good, bad or other for TTR or pension account?

Starting to look into these accounts more seriously and not sure what to expect vis-a-vie fees.

I don't know but that sounds reasonable to me.

@Quickstatus I didn't just look at fees. The Australian Super Balanced TTR returned over 8% last year which I think is ok considering Im planning on taking out the maximum 10%.

And if I salary sacrifice up to $32,000/year the income tax saving will be a bonus.

 

[Pushka]

I don't know but that sounds reasonable to me.

@Quickstatus I didn't just look at fees. The Australian Super Balanced TTR returned over 8% last year which I think is ok considering Im planning on taking out the maximum 10%.

And if I salary sacrifice up to $32,000/year the income tax saving will be a bonus.

Make sure you don't go over the cap which includes SG and salary sacrifice.

 

[JohnK]

Make sure you don't go over the cap which includes SG and salary sacrifice.

Yes I will stay well under the $32000 cap.

 

[Seat0B]

@Happy Dude

Here's that thread you were talking about over in travel mistakes. It hasn't seen much action for a while, but let's revive it!

I'm very interested in other people's planning and experiences too. I'll come back and post a few things I've learnt when I finish dealing with that other common retirement problem - managing the decline of elderly parents and navigating the aged care system for them!

 

[kookaburra75]

@Happy Dude

Here's that thread you were talking about over in travel mistakes. It hasn't seen much action for a while, but let's revive it!

I'm very interested in other people's planning and experiences too. I'll come back and post a few things I've learnt when I finish dealing with that other common retirement problem - managing the decline of elderly parents and navigating the aged care system for them!

Good idea @Seat0B - thanks for kicking it along. I retired at end of June, and we're now in the "post glow" phase. Certainly I have been able to set things in place to due to the advice and tips from the AFF community e.g. getting all the credit cards in order before you retire.

We had to navigate the aged care system with MrsK's mother over a decade ago and it seems it hasn't got any easier, which is a shame.

 

[Pushka]

We finalised as much as we could of our Superannuation washing process in July. We both did one transfer of $119,000 last FY (didn't want to risk getting into that $120,000 limit) and then in July with the increased allowances, brought over another $360,000 each both into two clean super accounts. We are still salary sacrificing and will get to the $390,000 limit within the next three years. In 2020 we can do another batch and we both come in under that dratted 75 year old limit.

Before I did all this I visited a financial planner. I'd done so much research and used AI to process and then check check check. Turned out at the end of the meeting the planner said something like - you really didn't need me did you but you just wanted to confirm what you have already started.

I don't think the kids will ever understand the benefit to them of what we are doing to avoid the estate paying tax. Think I might write them a letter. Assuming of course we leave anything for them.

 

[Happy Dude]

Thanks @Seat0B. I think this captures my embarrassment nicely.



I haven't really progressed much since 2024 either.

I'm early 50's and starting to consider retirement plans, so it's very interesting to read the experiences.

Anyone gone down the path of a cheap cost of living place like Thailand, Indo etc? It sounds appealing.

The May budget is having a big impact on my retirement plans. Lots of other moving parts too, eg elderly parents and in-laws, inheritances, kids, super that was neglected when I younger.

 

[kookaburra75]

We finalised as much as we could of our Superannuation washing process in July. We both did one transfer of $119,000 last FY (didn't want to risk getting into that $120,000 limit) and then in July with the increased allowances, brought over another $360,000 each both into two clean super accounts. We are still salary sacrificing and will get to the $390,000 limit within the next three years. In 2020 we can do another batch and we both come in under that dratted 75 year old limit.

Before I did all this I visited a financial planner. I'd done so much research and used AI to process and then check check check. Turned out at the end of the meeting the planner said something like - you really didn't need me did you but you just wanted to confirm what you have already started.

I don't think the kids will ever understand the benefit to them of what we are doing to avoid the estate paying tax. Think I might write them a letter. Assuming of course we leave anything for them.

Another big vote on getting financial advice. MrsK and I paid for it in 2016 to check predictions on when I could hope to retire. We are a 'special' case, as MrsK is in the PSS scheme, while I had my own SMSF, and we're both second-timers, starting from scratch etc. In late 2019 we had the financial advice updated as MrsK was going through a horrendous time at work, and it came back that she could retire then, moving to a PSS pension payment without any impact, and me when I turned 67.

We then engaged another financial planning company in Canberra, as suggested by a friend who is the grumpiest person I know, so I thought if he thought well of them that was a good recommendation. After meeting with them twice to understand what they could do, their advice and fees, level of comfort on how well they engaged with us, we signed up with them. We started the transition to me fully retiring at the end of last year, so we had six months to pay off the remaining mortgage, payments from my SMSF account, into another account and back to reduce liabilities around estate tax etc. They understand all of the ins and outs of super, taxation, age pensions, which is invaluable. I then retired at end of June.

We also updated our wills, and have our oldest children set up as our joint executors.