Moving towards retirement

Older Australians can now make a simpler transition to retirement by using non-commutable allocated pensions (NCAPs) which allow them to access their super without having to retire.

Anyone over 55 but less than 65 years of age is eligible to start an NCAP. An NCAP may allow you to:

  • gradually cut down your work hours and ease into retirement without reducing your take-home income, thanks to a funds injection from your NCAP, or
  • boost your retirement savings by continuing to work full-time, contributing more to your super through salary sacrifice and topping up your income with NCAP money.

When it comes to understanding an NCAP strategy, the benefits result from the differing tax rates applied to regular income, super and pensions. We can help you assess if an NCAP strategy would be suitable for you.

Boost your super

Using salary sacrifice to increase your super nest egg is an attractive option for some people as it can provide significant tax advantages.

When you salary sacrifice into super, you arrange with your employer to give up part of your before-tax salary. In return, your employer pays an equal contribution into your super account. This is in addition to the compulsory Superannuation Guarantee amount your employer is required to contribute.

Ask yourself:

  • What is my anticipated savings balance at retirement?
  • How much will I need to live on in retirement?
  • How long do I expect to live in retirement?

Useful materials

We can help you answer these questions and provide an investment strategy that suits your circumstances. Contact us today.

Estate planning

Estate planning is a process which ensures that after your death your property, money and other assets are distributed in accordance with your wishes. Effective estate planning can help minimise potential tax consequences for your loved ones and other recipients of your estate.

We can provide guidance on the overall process of estate planning, and in particular the superannuation, life insurance and taxation aspects.

  Contact Tracey today.