Case Study #1 - Ready for retirement

I'm approaching retirement | | 2 min read



The scenario

Dave is retiring with approximately $800,000 in superannuation. His wife, Rebecca, retired five years earlier from her part time job with $38,000 in super across a number of funds. They own their own home outright, have an additional investment property with a mortgage, $30,000 in savings, and another $15,000 in shares. They have three adult children.

The plan

The couple would like an annual retirement income of $70,000, with $20,000 set aside for emergencies. In the meantime they want to eliminate their investment loan, purchase a new car, take an overseas holiday, and spend about $30,000 refurbishing their home.

The solution

After sitting down with Dave and Rebecca we made a number of recommendations that would help their super last longer. 

Based on their decision to sell their investment property and pay off their mortgage, we suggested that they use the proceeds to fund their new car purchase, renovations, and overseas holiday.  

Rebecca’s superannuation was relatively straightforward. We recommended that she consolidate her funds into a single account (to save money), and invest in Equip’s Conservative option, so her money could continue to grow without having to take excessive risk.

Dave’s large super balance gave the pair considerable options. We recommended setting up a regular income stream using an Equip Account Based Pension. This would provide the couple with a weekly income of $1350, or roughly $70,000 per year, which is what they were aiming for. It also meant their remaining super balance could be reinvested and continue to grow.

Since Dave is over 60, all the income he receives from super via an Account Based Pension is tax free. It also means the couple qualify for a low income Health Card from Centrelink. We calculated they would be eligible to start receiving age pension part-payments in several years, once their super income drops below a certain threshold. Which means their future lifestyle is looking good.

Find out how  Equip Financial Planning can help you plan for the future here. 

Issued by Togethr Trustees Pty Ltd ABN 64 006 964 049, AFSL 246383 ("Togethr"), the trustee of the Equipsuper Superannuation Fund ABN 33 813 823 017 ("the Fund"). The information contained herein is general information only and does not take into account your personal financial situation or needs. You should consider whether this information is appropriate to your personal circumstances before acting on it and, if necessary, you should also seek professional financial advice tailored to your personal circumstances. Where tax information is included, you should consider obtaining personal taxation advice. Before making a decision to invest in the Equipsuper Superannuation Fund, you should read the appropriate Product Disclosure Statement (PDS) and Target Market Determination for the product which are available at  Financial advice services may be provided to members by the trustee’s related entity Togethr Financial Planning Pty Ltd (ABN 84 124 491 078; AFSL 455010). *Past performance is not an indication of future performance.

Join our award-winning fund

Plan for your future with the industry fund that works hard for you.

Join us