Superannuation Discussion + market volatility

[Jacques Vert]

Until then, if you leave your employment or "retire", since you are over 60 you can access part of or your entire balance and pay off any debt as a lump sum. (It does not matter if you find gainful employment somewhere.

To add to that, last time I checked , you didn't have to retire from your main job , just cease an employment contract . Many get around this by working on election day. You sign a contract , do the day's work and your contract has finished . Box ticked.

But make sure you check this with an adviser and/or your accountant. The above is not financial advice .

 

[QF WP]

Note at 65 years old the TTR transitions back to allocated pension and tax on earnings will be back the same as accumulation phase.

Have appointment with financial planner next Monday.

@JohnK, once an account moves from either super to account based (allocated pension) or from TtR AP to retirement AP, then tax on earnings are zero.

From moneysmart.com.au:

• Transition to Retirement (TTR) Pension (Age 60+): Regular payments are tax-free, but investment earnings in the fund are taxed at up to 15%. You cannot take lump sum withdrawals, and payments are capped at 10% of the balance annually.
• Allocated Pension / Account-Based Pension (Age 60+): Income payments are tax-free, and investment earnings within the fund are also tax-free.
• Under Age 60: TTR and pension payments are taxed at your marginal rate less a 15% tax offset.
• TTR to Account-Based Pension: Once you turn 65 or declare full retirement, a TTR account converts to an account-based pension, making investment earnings tax-free

 

[JohnK]

If you have any debts still costing you interest at the age of 65 it makes good sense to eliminate the debts completely. It is unlikely returns on an income stream would be greater than the cost any interest.

Good advice. Debt will be close to wiped out soon.

You should be able to find advisers who will provide initial consultations without a fee. Have you asked your current superfund if they have such a service?

I have set up free meeting with Insignia Financial next Monday.

I know I want TTR. I'm curious if anyone thinks it's a bad idea or has other advice.

 

[OATEK]

Good advice. Debt will be close to wiped out soon.



I have set up free meeting with Insignia Financial next Monday.

I know I want TTR. I'm curious if anyone thinks it's a bad idea or has other advice.

I used TTR for 3 years to cut back work hours from 5dpw to 3 dpw. I found the time that gave me was valuable both for preparing for retirement, and for time with family (esp grandchildren).