Retirement Planning
As you near the end of your financial journey, it’s crucial to ensure everything is in order.
Our Approach
We provide personalised retirement advice to help you minimise your tax, maximise any government benefits as well as effectively manage your estate.
At Donmont Capital, we want to make your transition to retirement as smooth and stress-free as possible so you can enjoy a well-earned, comfortable retirement.
Transition To Retirement Strategy (TTR)
A Transition to Retirement (TTR) strategy offers a flexible approach for individuals who have reached their preservation age, allowing them to access their superannuation benefits while continuing to work.
This strategy involves setting up a TTR Pension Account, which enables you to withdraw tax-free pension payments ranging from 4% to 10% of your balance annually, if you’re under the age of 65.
To fully benefit from a TTR strategy, you will also need an Accumulation Account, where your employer’s Super Guarantee contributions can continue to grow your retirement savings.
A TTR strategy can be a smart way to reduce working hours without sacrificing income or to lower taxable income by combining it with a salary sacrifice plan—ensuring your personal cash flow remains steady. It’s crucial to seek professional advice to understand how this strategy can fit into your retirement plan and maximise its advantages. Contact us today to explore how we can assist you in creating a tailored TTR strategy.
Income And Assets Test: How They Affect Your Age Pension
In Australia, your eligibility for the Age Pension is determined by both income and asset tests. These tests help assess how much pension you’re entitled to receive based on your financial situation.
- Assets Test: This looks at the value of assets you and your partner own, including property (excluding your primary residence under certain conditions), vehicles, businesses, superannuation, and investments—both in Australia and overseas.
- Income Test: This evaluates income from various sources, including wages, business income, investments, and superannuation. There are thresholds for how much you can earn before your pension is affected, with the pension reducing by a set amount for every dollar earned above these limits.
Incorporating the Age Pension into your retirement plan can significantly impact your financial outlook during retirement. However, the rules governing these tests frequently change, so it’s essential to seek advice and evaluate whether government benefits could enhance your retirement strategy. Reach out to us to discuss how we can help you navigate the complexities of the income and asset tests.
