Retirement Planning Services with Crest Accountants

When you think about your retirement, what does it look like to you? Is it a modest lifestyle, covering only basic activities? Or is it more comfortable with leisure activities and travel? Retirement planning can help you go from a modest retirement lifestyle to the retirement lifestyle that you want, where you are comfortable and enjoying your golden years. Do you know how much you need to save for a comfortable retirement lifestyle?

If you don’t know how or where to start with planning for your retirement, you’ve come to the right place. Our team has over 45 years experience in helping clients with financial planning and retirement.

Meeting with one of our experienced financial planners and retirement accountants is the best place to begin your retirement planning journey. We can help with professional advice and guidance that will help you achieve a happy and comfortable retirement.

Retirement Planning Services provided by Crest’s Retirement Accountants

Talk to our team of retirement planning specialists to help you set a personalised, goal-oriented retirement plan that will help you achieve happy and comfortable retirement.

1. Goal setting for a retirement plan

What does a comfortable lifestyle in retirement look like to you? Crest Advisors can work with you to find out what that might be and to put a plan in place to get there.

2. Budgeting for retirement savings

Crest Accountants can work with you to assess all of your income and expenses, then create a budget that you can stick to in order to redirect excess cash to your retirement savings plan.

3. Debt reduction before your retirement

We will help you to take stock of all of the debts you are liable for now and make a plan to pay them down before retirement. We will focus on clearing high interest debt first, then work on remaining debts like the home mortgage.

4. Superannuation contributions to your retirement savings

Superannuation Guarantee requires that employers contribute 10.5% of an employees’ ordinary time earnings into their superfund (this is increasing to 12% by 2025). Making additional voluntary contributions to your superfund as early and as frequently as possible can dramatically increase your savings over time. You can also use this strategy to minimise tax in certain circumstances. Crest Advisors will explore these options for you and show you how this strategy could benefit you.

5. Government Age Pension and retirement planning

Many people will fund their retirement with a combination of personal savings or investments, a superannuation income stream, and a part or full government age pension. Crest Advisors can assist you to access the government age pension if you qualify.

Not only will we work with you to help you plan for all of the above in the future, but we’ll also help you understand how these areas are working for you now, to help you discover the retirement plan that’s right for you.

The best way to plan for retirement is to talk to our financial advisors to find out how you can save for retirement, access the benefits of the superannuation system, reduce expenses, pay down debts, and boost your superfund balance well before retirement. Retirement is a new stage in life, and you need to be prepared mentally and set up goals for your stress-free retirement. Your family should also be prepared for your retirement.

Understanding Superannuation and your retirement plan

The superannuation system is one of the most popular ways that Australians build their nest eggs and save for retirement. Ideally a superfund is a continually growing investment and savings account that potentially provides generous tax benefits.

How can you boost your Super before retirement?

The earlier you start planning and saving for your retirement, the better. We have many wealth management financial planning clients who ask us the best ways to increase their superfund savings when they reach the age of 50, however our tips and advice can be used to help anyone at any age.

Make voluntary tax-deductible contributions

Thanks to Superannuation Guarantee, your employer is required to contribute 10.5% (increasing to 12% as of 2025) of your ordinary time earnings to your superfund. If you want to grow your super balance further, and certain eligibility conditions are met, you can make your own voluntary contributions to your superfund.

These additional voluntary contributions may be tax-deductible, subject to the annual concessional contributions cap of $27,500, which applies to both employer Superannuation Guarantee contributions and your additional voluntary contributions.

If you haven’t used the all of the concessional contributions cap of $27,500 in the past, the ATO does allow you to carry forward your unused concessional contributions. This means that, provided eligibility requirements are met, you are able to contribute more than the $27,500 in a single year and receive a tax deduction.

In many cases, your voluntary concessional contributions that are under the capped amount are taxed at a rate of 15% inside your superfund. There is an additional top-up contributions tax of 15% for very high income earners (known as Division 293 tax). For those whose marginal tax rate is greater than 15%, making voluntary concessional contributions may result a net tax benefit.

If you want to make additional tax-deductible contributions to your superfund, there are different ways you can do this.

• Salary Sacrifice – You can request that some of your wages are diverted to your superfund by your employer, as salary sacrificed super contributions.
• Voluntary personal contributions – These are contributions that you make on your own. You will need to contact your superfund to do this. Also, if you intend for these contributions to be tax deductible, you will need to complete the required form at the end of the year and submit it to your superfund. Once the superfund has processed this form, they will send you a letter of acknowledgement. This letter must be on hand before you lodge your tax return. Be sure to talk to an experienced wealth advisor to assess if voluntary concessional super contributions could work for you.

By adding small contributions, such as a few hundred dollars, to your superfund whenever you can, you can give a considerable boost to your retirement savings. Superfunds grow with the power of compounding over time.

As a sole trader or self-employed person, you cannot forget to pay yourself super. If you make these payments a habit, you can benefit in the future and also minimise your tax now.

Increase your retirement savings by selling an asset

If you have a large ticket asset, such as an investment property, and you are planning to sell it, you can consider contributing some of the sale proceeds to your superfund. With the non-concessional contributions cap, you can contribute $110,000 annually, or $330,000 if you are eligible for the bring forward rule. This cap can be used to dramatically boost your retirement savings. However, you are not eligible for a tax deduction for contributions made under this cap. Ask our team of wealth advisors for more information on this cap, and to assess if you qualify for the bring forward rule to make substantial contributions to your retirement savings.

Downsize your main residence

If you are over 60 and are downsizing your main residence to a smaller property, you can contribute up to $300,000 (per person) from the sale to super. This contribution is not eligible for a tax deduction and also does not count towards contribution caps. It does, however, count towards your transfer balance cap. There are conditions surrounding downsizer contributions, so you should to speak to a financial advisor to assess if you qualify for this option.

Retirement Planning FAQ’s

When it comes to retirement financial planning, the earlier you start the better, and you should know that it’s never too late to start. Our team of retirement accountants are here to answer any questions you may have, and alleviate any concerns whilst providing you with the confidence and reassurance you need to make a plan and set goals that are right for you. Remember, everyone’s retirement plan is different. We can provide guidance on how retirement funds can work for you and what retirement investments may be appropriate. We pride ourselves on providing independent and unbiased advice.

What is meant by retirement fund?

A retirement fund is money or investments you have accumulated over your working life to fund your retirement. This is often a combination of personal savings or investments, plus your superannuation balance.

When can you withdraw your Super?

You can access your super once you satisfy a condition of release. This usually means any of the following:

• Reaching preservation age and have retired.
• Reaching preservation age and beginning a transition to retirement income stream.
• Ceasing employment after age 60.
• Have turned 65 (even if you are not retired).

Am I eligible for the government Age Pension?

The age you qualify for the Age Pension will be between 65 and 67, depending on your date of birth.

Your eligibility for the Age Pension will usually come down to three things:

• You must be an Australian resident and physically present in the country on the day you submit your claim. You also must have lived in Australia for at least 10 years and continuously, for at least five of those years.
• You pass the Income test
• You pass the Assets test

If you’re the right age, meet residency requirements, and pass the income and assets test, you’ll then need to fill out a claim form with Centrelink.

Plan for your future with Crest

The team of wealth advisors at Crest Advisors can help you plant the seeds which will grow into a financially fruitful future and comfortable retirement. Wealth management, education and protection are here for you, along with all the help you need with financial planning and building your retirement fund.

Contact our team today for retirement financial planning that grows, protects you and your family, and reaps rewards in your later years.

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