For most Australians, the definition of retirement means different things to different people. Whereas previously to retire meant a departure from paid employment, nowadays lifestyle factors affect our work-life cycle and, for some, retirement has morphed into a combination of semi retirement, career change, lifestyle change and travel. Whichever is the best fit for your individual circumstances, targeted retirement planning is mandatory to ensure you are able to comfortably accommodate your goals and aspirations.
A recent media release from the Australian Bureau of Statistics (March 2016) announced Australians are intending to work longer than ever before. In the survey conducted in 2014-15, 71 per cent of persons intended to retire at the age of 65 years or over, up from 66 per cent in last survey result of 2012-13 and 48 per cent in 2004-05. For those in the labour force who intended to retire, the most common factor influencing their decision was financial security.
Planning for Retirement
At Elston, we understand that financial security begins with a customised financial plan. We work with our clients to develop the right long term structure so they’re not forced to sell assets at a loss at retirement. We encourage clients to structure their wealth so they have the flexibility to work as much or as little as they like, while improving their long-term capital preservation and sustaining their living requirements for retirement.
Navigating the different options available can be challenging. How do you generate a passive income stream? Where should you invest? What are the latest changes to taxation and other regulations relating to superannuation? Our advisers offer up-to-date advice on a range of retirement planning solutions in alignment with your individual circumstances, assets and liabilities; your short and long term financial goals; and your ideal retirement plan. Some of these options include:
Self Managed Super Funds (SMSFs)
A self-managed super fund (SMSF) provides greater flexibility and control over your investments and financial future. With many Australians unsure where their superannuation is invested in traditional industry and retail funds, and many delivering average, or below average performance, the benefits of an SMSF make it an attractive component of a long term retirement plan.
SMSFs are proving to be a solid investment vehicle, with the Australian Taxation Office touting them as a viable way of saving for retirement. Indeed, an SMSF must be run for the sole purpose of providing retirement benefits for the members or their dependants. The difference between an SMSF and other types of funds is that the members of an SMSF are usually also the trustees. This means the members of the SMSF run it for their own benefit and are responsible for complying with the super and tax laws.
With traditional super funds professional, licensed trustees are responsible for managing the fund and bear the compliance risks. While some allow control over the mix and risk level of your super investments, generally you are unable to select specific assets your super will be invested in.
If an SMSF isn’t a good fit for your current financial situation, there are many options available for leveraging and maxmising your traditional superannuation fund. Additionally, you can make your own contributions, organise a salary sacrifice arrangement, or take advantage of eligible government superannuation co-contributions.
The right advice – the right plan
Everyone has unique goals, limitations and assets; and accessing the right financial advice is as important to your retirement plan as the structure you use. An experienced financial planner will use a ‘big picture’ approach, taking the time to discuss your personal circumstances and identify your goals, before matching you with a plan designed to actualise your retirement goals by harnessing your financial potential.
Control your wealth – control your future
Retirement dreams are never a one-size-fits-all ideology, and retirement planning is never a one-size-fits-all financial solution. Whether you dream of caravanning around Australia, spending more time with the grandchildren, cruising the world, or taking on part-time or hobby income streams, you need the financial security to embrace your dreams with confidence.
To control your wealth is to control your future. Whether it’s building wealth through an investment strategy, or tapping into the benefits of an SMSF, Elston can help you achieve financial security with a customised retirement plan.