QHA_February_Mag_Web

SUPERANNUATION with Brendan O’Farrell
A WAY TO HELP YOUR RETIREMENT SAVINGS
LAST LONGER
QHA REVIEW | 22
Back in November, I talked about an increase to the
Age Pension age. I know many people who were
surprised to learn they won’t be able to access the
Age Pension until they reach age 67. Some don’t want
to keep working until then, and some don’t think they’ll
be able to. If you or any of your employees are nearing
retirement age, this might be on your mind as well.
This month I want to talk about ways that
superannuation can help people retire at 65, even
without the Age Pension.
You and your staff can access superannuation once
preservation age is met and retirement commences
(which could be as young as 55, depending on date of
birth). Superannuation savings can then be withdrawn
or transferred to an account-based pension.
An account-based pension is a retirement product
offered by superannuation funds. The account enables
you to draw an income stream, lump sum, or a
combination of both from your superannuation
in retirement.
Leaving your money to grow in superannuation could
help your savings last longer. And if you have to spend
a few years without access to the Pension, stretching
your savings throughout retirement will be even
more important.
RECEIVE A REGULAR INCOME
While you and your staff are working, regular income
payments are likely to come in each month or fortnight.
Upon retirement, this steady stream of income
will stop.
Rather than getting used to a new way of managing
money, you or your employees can arrange to receive
a regular income stream through a superannuation
account. Receiving a regular income in retirement can
help with tracking expenditure. This could help ease
the transition from working life to retirement.
HELP YOUR MONEY GROW, TAX-FREE
In super, money continues to be reinvested throughout
your account’s lifetime, and could grow much faster
than money in a term deposit. A balanced portfolio is
designed with diversified investments. If you or your
staff are concerned about risk, a portion of retirement
savings can always be invested in cash.
Additionally, once superannuation is moved into an
account-based pension, investment earnings won’t
be taxed at all. Paying no tax on investment earnings,
rather than paying tax at an individual’s marginal
rate, could make a significant difference to retirement
savings.
LUMP SUMS ARE STILL AVAILABLE
Starting an account-based pension won’t limit access
to your money either. You can still withdraw a larger
portion of money from your superannuation account,
even if you have organised an income stream.
If you or your staff are Intrust Super members, you
are even able to do this online. Simply log in to your
MemberAccess account any time you like, and
organise the withdrawal, much like you would with
your bank account.
If you’d like to know what your options are, and what
would best suit your situation, Intrust Super is here to
help. Our financial advisers at Intrust360° can give you
an idea of where your money might work best for you.
Just call 1300 001 360.
The information contained in this document is of a general nature only,
and does not take into account your individual situation, objectives
and needs. You should consider the appropriateness of the general
information having regard to your own situation before making any
investment decision. A Product Disclosure Statement is available at
www.intrust.com.au or call us on 132 467 for a copy.
Issued by IS Industry Fund Pty Ltd | MySuper Unique Identifier:
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Licence No: L0001298 | Intrust Super ABN 65 704 511 371 | SPIN/
USI: HPP0100AU | RSE Registration No: R1004397
Financial planning is provided by IS Financial Planning Pty Ltd ABN
64 143 707 439 trading as Intrust360° is a wholly owned subsidiary
of IS Industry Fund Pty Ltd ABN45 010 814 623. Intrust 360° is a
corporate authorised representative of Adviser Network Pty Ltd | ABN
25056310 699 | AFSL 232729 | Corporate Authorised Representative
Number 379207.