We don’t plan to fail...
but sometimes we fail to plan.
Planning for retirement
If you're planning on retiring someday then you need to start preparing now. Seriously ask yourself - will the amount of money going into my super account each year be enough to keep me in retirement?
When we put “ 45+? “ on the home page we only did so because that’s generally when people start to think that maybe 55 isn’t so old after all or maybe they would like to actually retire instead of working till they drop! The sooner we start planning for that day, the better off we’ll be. We should all really be doing it the day we receive our first pay cheque...but NOW is also a good time!!
Do you pay anything into your super yourself? With incentives such as salary sacrifice (PDF document) and the Government Co-contribution (PDF document), it makes sense to consider adding to your superannuation during your working life. While the market doom and gloom of the Global Financial Crisis meant that the balance you saw on-line or on your last paper statement was disappointing, it also meant that money paid in during low times was buying investments at the reduced prices. Since July 2009, the market has turned around a lot and you can see the returns both month by month or year by year if you like ...just remember to keep it in context. Your super is often the longest term investment you’ll ever have...20 to 30 or maybe even 40 years is truly long-term investing.
Market volatility is normal and history has shown us that while markets go down...they also go up. AMIST Super is still sticking to the same prudent investment strategies of diversifying your investments and using a variety of skilled fund managers to invest your money.
Low-fees are an important factor in superannuation – this year the Money magazine ‘Best of the Best’ Awards ranked AMIST Super and the AMIST Pension in the top-3 of lowest- cost funds across Australia.
If you're at the point of retiring and considering what to do with your nest egg - you may want to consider using our AMIST Pension (PDF document) which simply reverts your super over to an income stream that provides tax free earnings.
If you are 60 years of age (or more) there is no taxation payable on your pension income (and tax is generally payable at a reduced rate if you are under 60) and you could still be eligible to receive benefits from Centrelink. Rather than cashing out your super in one lump sum (and where will you put it anyway? What other investment gives you zero tax on earnings and is as Centrelink friendly?) you simply leave it in the AMIST Pension which has no tax on the earnings and take it slowly, over time..the same way you paid into your super during your working life.
If you're over 55 and still working, Government legislation now allows you to transfer all or part of your superannuation to the AMIST Pension, even if you are still working...allowing you the option of easing into retirement.
Called a Transition to Retirement Pension (TTR) – it’s a great way to start taking your AMIST Super today as an income (tax free if you’re over 60!). This then allows you to salary sacrifice all or some of your wages to AMIST Super and reduce your income tax. To learn more about how a TTR Pension works, please read our fact sheet (PDF document) and consider speaking to a qualified financial planner about your individual circumstances.
AMIST Super currently has a relationship with Mercer Wealth Solutions. Currently they offer our members an obligation and cost free initial consultation to discuss exactly that – your circumstances, your options and your opportunities – you can then proceed to a written financial plan if you desire (which is provided under a fee-for-service basis).
Moving forward, AMIST Super will be launching a telephone advice service in June. This advice will cover topics such as investment choice, contributions strategies (“if I pay in $X what does this mean?”) and other options – this advice will be provided for our members at no additional charge. The costs will be covered by the membership fees paid by all members of the fund. So, in effect, all members will have already paid for it....and hopefully many of them will benefit from it!
Watch this space for more information!
In the meantime, please feel free to call 1800 808 614 8am-8pm EST or email amist@aas.com.au if you’d like help and while you’re there, please also ask for a user name and password so you can see your accounts online – this is a great way to keep up to date with your money (though it’s best not to look at it too often! Remember, super is a long term investment!)
Melinda Gibson and Royston Bennett are also more than happy to help – although they can’t offer financial advice, they’re qualified Member Service Managers who can offer guidance and information.
Royston Bennett is responsible for Victoria, SA, Tasmania and WA and can be contacted on 0437 697 737 or roystonb@amist.com.au
And Melinda Gibson is responsible for Qld, NT and NSW and can be contacted on 0407 919 796 or melinda@amist.com.au