Your retirement strategy is a key element of your overall financial plans. Ultimately, the answer to the perennial “when can I retire?” question requires a thorough assessment of your particular financial position, your ongoing financial responsibilities and your personal goals for retirement.
There is no simple “one-size-fits-all” answer to a complicated set of questions with many influencing factors.
It’s important to build your understanding of the rules and regulations covering superannuation and how contributions and withdrawals are taxed. These are complex areas which have been subject to revisions by successive governments. It’s also necessary to understand the key stages of retirement under the superannuation and income tax rules which currently apply.
Of course, you can retire when ever you like, if you believe you have the means to do so, but for most of us it’s important to know how things operate within the superannuation and age pension environments. Your age is a key factor and two key milestones you need to be familiar with are the superannuation preservation age, below which you cannot access your superannuation, and the Age Pension Eligibility age. These age thresholds vary in line with your actual date of birth.
Another key age milestone occurs when you reach 60 years of age, at which point withdrawals from superannuation will be generally free of income tax if you are retired.
Understanding these structural factors is important, but it is equally crucial to take the time to assess your overall retirement plans and the financial strategies that support those plans. Here’s just a few factors to consider:
•Will the family home be paid off? If not, you will still need to fund mortgage payments (or rent) into retirement. This may materially impact your calculations.
•Willyou still have dependentsreliant upon your ongoing financial support?•Will you have other debtsthat need to be serviced into retirement?
•What are your personal goalsfor retirement? Everyone has their own unique vision. Whether it’s a simple life in the country or seeing the world in style, it’s important to factor everything into your retirement thinking.
•Are your financial affairs and plans optimised to make sure you have the best possible opportunity to realise your goals?The importance of expert advice cannot be overstated. Kensington Wealth would be delighted to help you achieve your retirement dreams. Contact us today for an initial consultation.