Worry-Free Retirement

By Gerard Haskew | 22/12/2016

Time to take action for a worry-free retirement.

As another year draws to a close we reflect on the events and changes we have seen and how life seems to pass by more quickly every year. For those of us approaching or in retirement, it’s a great time to take stock of your situation and make some decisive moves for a more secure financial future. For those on the other side of 60, thoughts may turn to the delights of a well-deserved retirement that suddenly doesn’t seem so far away. Perhaps you have been putting serious retirement planning on the backburner up until now? If so, you could be missing out on taking full advantage of the many opportunities available to you. For those already in retirement, new assets test rules are not too far away, so it may be time to reposition your finances to protect from any negative impacts and see what opportunities there are to improve your overall income and lifestyle. The end of year period is a great time to ‘take stock’ and start the new year with a real sense of purpose. It’s your chance to
take action now!

Assets test changes are looming large

The new rules on assets assessment may have a major impact on those entering or already in retirement. Effective from 1 January 2017, the thresholds under which you receive full pension benefits have been increased, but this is coupled with a doubling of the rate at which pension benefits are reduced once you exceed those thresholds, (from $1.50 per $1,000 in assets, to $3 for every $1,000 in assets).
The new asset limits to retain full entitlements are:

  • $250,000 for a single homeowner
  • $375,000 for a homeowner couple
  • $450,000 for a single non-homeowner
  • $575,000 for a non-homeowner couple

We can help you understand how the new rules will affect you and suggest possible strategies to minimise the impact, such as:
• Contributing to the super of a partner who is still under pension age
• Directing funds into home improvements on your principle residence
• Gifting to family members
• Using lifetime annuities

Control your estate your way

Approaching retirement is a time to seriously consider how our assets will be passed on and how we want medical and legal issues handled if we ever become unable to manage them ourselves. Leaving such issues until it’s too late can cause enormous stress on families. An adviser has the experience and know-how to help you plan your estate your way including:
• Working with your solicitor so your will protects from disputes, challenges and the risk of inheritance being squandered
• Planning the correct distribution of assets that are not always covered by your will, such as life insurance and superannuation
• Advice on ownership structures and trusts to help manage your estate tax effectively
• Delegating your decision making authority to deal with aged care and medical issues

Wrap up the year with a sense of clarity and purpose

As the year draws to a close, now is the perfect time to reflect, reassess and make informed decisions that strengthen your financial security. With assets test changes on the horizon and estate planning becoming more important than ever, taking proactive steps today can help protect your pension, optimise your wealth and ensure a comfortable, confident retirement. Every decision you make now is an investment in the lifestyle you want tomorrow.

If you’re in Sydney or nearby suburbs , Leading Advice is here to guide you every step of the way.
Our team can help you understand the new rules, reposition your finances, maximise your retirement income and build a plan that truly supports your long-term goals.

Take control of your retirement future—contact Leading Advice today and book your personalised retirement strategy session.

Book Your Consultation now!

The information provided in this document is general information only and does not constitute personal advice. It has been prepared without taking into account any of your individual objectives,
financial solutions or needs. Before acting on this information you should consider its appropriateness, having regard to your own objectives, financial situation and needs. You should read the
relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser. From time to time we may send you informative updates and details of the range of services we
can provide. If you no longer want to receive this information please contact our office to opt out.

FAQs

How will the new assets test changes affect my retirement pension?

The new Centrelink assets test changes can impact how much Age Pension you receive. Once your assets exceed the updated thresholds, your pension may reduce at a faster taper rate. Understanding how these assets test rules apply to your situation is essential for maximising your retirement income.

What strategies can help maximise my pension eligibility in Australia?

Common strategies to improve pension eligibility include contributing to a partner’s super, making home upgrades, gifting within allowable limits, and considering lifetime annuities. These approaches may help reduce assessable assets under the Centrelink assets test, improving your retirement benefits.

Should I update my estate plan before entering retirement?

Yes. Approaching retirement is the ideal time to review your estate planning, including your will, superannuation nominations, powers of attorney and ownership structures. Proper estate planning ensures your assets are protected, tax-efficient and distributed according to your wishes.

How do I know if I’m financially ready for retirement in Australia?

A retirement readiness check should include reviewing your super balance, pension eligibility, investment strategy, estate planning, income needs, and upcoming rule changes. Speaking with a retirement financial adviser can help you assess your situation and create a personalised retirement plan.

Related Blogs

Posted in Financial Planning and tagged , , ,