Retirement often seems a long way off, but with Australians living longer and staying more active in retirement than ever before, your retirement lifestyle is not something to be left to chance.
At Venture, we help create a personalised retirement plan designed to help you enjoy the retirement lifestyle you’ve been looking forward to. Your plan covers every aspect of your financial life, including risk protection and estate planning, so you can be confident that your family’s future is secure.
Retirement planning strategies
Here are some of the retirement planning strategies we may help you explore, depending on your individual situation:
- Salary sacrifice
Making pre-tax contributions through salary sacrifice provides the dual benefit of reducing your taxable income and maximising your superannuation contributions. For someone in the highest tax bracket, that can provide an upfront tax break of 31.5%. And because earnings within superannuation are taxed at a maximum of 15%, you’ll also build more wealth over time than in a comparable non-superannuation investment
- Contribution splitting
For couples where there is a considerable difference in earnings, there can be a significant tax benefit in diverting extra superannuation contributions to the lower paid partner’s account
- Self Managed Superannuation Funds
If you are looking for greater investment choice and control, a Self Managed Superannuation Fund (SMSF) can be an attractive choice. We’ll help you manage the complexities of setting up and administering your own fund, developing a personalised investment strategy that maximises your opportunities, while keeping risk under control.
- Retirement income streams
Once you’ve stopped working, the right choice of retirement income stream is essential to fund your retirement lifestyle over the long term. We can help you select the best option for your personal situation, then structure your income to support your changing circumstances
- Wills and estate planning
We can help you explore options for transferring wealth effectively to leave a lasting legacy for your family, including testamentary and family trusts.
Self Managed Superannuation Funds
If you are looking for greater investment choice and control, a SMSF can be an attractive choice.
SMSFs are the largest and fastest growing superannuation sector in Australia and for many good reasons. But before you start a SMSF, it’s important to consider seeking advice and weigh up both the advantages and disadvantages to determine whether an SMSF is right for you.
SMSFs can offer a number of features and benefits generally not available with other super options.
- More investment control – You can establish your own investment strategy and directly control where and how your super is invested
- More investment choice – You can select from a wider range of investments including all listed shares, some unlisted shares, residential and business property, and collectibles such as artwork, stamps and coins
- One fund for the family – You can set up a fund for yourself and up to three other people and consolidate your super balances. This could enable you to invest in assets of higher value than if you set up a fund with fewer members, achieve greater estate planning flexibility, and reduce fund costs
- Borrow to make larger investments – Your SMSF could make a larger investment in assets such as shares and property by using cash in your fund and borrow the rest.
- Tax savings – With SMSFs you can take greater control over the timing of tax events such as starting a pension without triggering capital gains tax when your superannuation assets move into pension phase. You may also have the option of transferring certain assets that you own into your SMSF
- Greater estate planning certainty and flexibility – You can nominate who you would like to receive your super when you pass away without having to meet some of the constraints that apply to other super funds.
While a SMSF can offer greater opportunities to take control of your retirement savings, there are some potential disadvantages you should also consider.
- Higher costs for lower balances – SMSFs generally only become cost effective if the fund has $200,000 or more invested. This is particularly true where you outsource and pay for most or all of the fund administration
- Greater responsibility – When you set up an SMSF, you and any other fund members will generally need to be trustees (or directors of the corporate trustee) and will be responsible for meeting a range of legal and other obligations
- Time consuming – You will need to have enough time, knowledge and skills to manage your own super and meet your legal and other obligations
- Harsh penalties for breaches – The Australian Tax Office has the authority to impose various treatments to deal with SMSF trustees who have breached super laws
- requiring trustees to complete certain educational requirements within certain time frames
- disqualifying an individual from acting as a trustee or director of a corporate trustee
- imposing significant administrative penalties on individual trustees and directors of corporate trustees of up to $10,800 per breach
- applying through the courts to impose civil and criminal penalties
- giving notice to a trustee to freeze the SMSF’s assets where it appears that their conduct is likely to adversely affect the interests of beneficiaries.
We’ll help you manage the complexities of setting up and administering your own fund, developing a personalised investment strategy that maximises your opportunities, while keeping risk under control. For more details on our nonadministrative service for SMSFs service see our SMSF administration page.