Natalie (59) and Jeff (61)
Natalie wasn’t quite ready to retire from work when her husband Jeff hung up his boots two years earlier. With five years to go until she planned on retiring, Natalie wanted to do as much as she could to maximise her super before finishing work at age 65.
Natalie had been making additional contributions to her super since they’d paid down their mortgage, and with no other debts, she was comfortable contributing more to make the most of her retirement investment.
However, Natalie wanted to determine the most tax-efficient way to do this, so she and Jeff met with Active Super financial planner, Dean.
Here’s how Dean, their Active Super financial planner, helped.
Making the transition:
Dean recommended a transition to retirement strategy for when Natalie turns 60, meaning that she could start receiving a tax-free income stream from her super twice-monthly. Using this extra money to supplement her income, she could now afford to salary sacrifice even more. Not only did this mean her super balance grew, it also reduced her taxable income.
Getting the house in order:
Natalie’s super balance was invested in a high growth strategy, which at this stage of life didn’t match her risk profile. It turned out that Natalie was more comfortable with a less risky approach, so Dean arranged with her super fund to reallocate her investments into a moderate strategy.
What would happen to their super?
The couple thought that when they died, their super balance would be paid in accordance with the instructions in their wills. However, Dean informed them that’s not the case and helped the pair complete a binding nomination to ensure their super would be distributed to their beneficiaries as intended.
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*Whether or not a fee applies will depend upon the scope of the financial advice you require. Your financial planner will discuss any fee payable when meeting with you and, if a fee is applicable, will advise you of the fee should you decide to proceed with obtaining the advice.
This case study is illustrative only and is not an estimate of the investment returns you will receive or fees and costs you will incur. Member names have been changed to protect anonymity.
This has been issued by LGSS Pty Limited (ABN 68 078 003 497) (AFSL 383558), as Trustee for Local Government Super (ABN 28 901 371 321) (Active Super). Any advice in this case study is general in nature and is not a substitute for personal advice as it does not take into account your investment objectives, financial situation or particular needs. Accordingly, you should seek professional personal advice and refer to the relevant Product Disclosure Statement at lgsuper.com.au before making a financial decision.