Case Study #3 - Approaching retirement with confidence

I'm approaching retirement | | 2 min read



The scenario

Robert is aged 66 and about to retire. He is currently working part time. He has approximately $790,000 in superannuation, $80,000 in savings, and $60,000 in shares. He still has a mortgage, and would like to do some home renovations and take an overseas trip in the near future.

The plan

Robert wants to pay off his mortgage and be debt free before retirement. He’s hoping to receive about $40,000 a year in retirement income including Centrelink benefits. He’d like to keep $50,000 as a cash reserve for emergencies, and has planned an overseas trip.  

The strategy

After reviewing Robert’s situation we suggested he could pay off his mortgage using a combination of his savings ($62,000 from his mortgage offset account) and superannuation ($72,000).   

We also recommended that he open an Equip Account Based Pension. This would allow him to claim a tax-free pension of $1538 a fortnight (approximately $40,000 a year). Any investment earnings on his super would also be tax-free, enabling him to offset some of the drawdown.  

Finally, we advised Robert to apply for a Seniors Card and a Low Income Health Care Card. 

These recommendations would set him up for a comfortable retirement lifestyle, with an income that meets his requirements.

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