Milestones aren’t just about celebrating life’s big moments—they’re also important when it comes to financial planning. To help you make the most of these opportunities, let’s explore the key financial milestones that apply as you move toward retirement.
At 55: Unlock New Super Opportunities
Turning 55 opens the door to making “Downsizer” contributions to your super. If you’re selling your home, you can contribute up to $300,000 per person (or $600,000 for couples) to your super. It’s a fantastic way to boost your retirement savings and potentially enjoy a higher retirement income.
Before jumping in, it’s worth getting a retirement forecast or advice to see if this strategy fits your plans. And, of course, understanding the rules is crucial to avoid any hiccups.
At 60: The Super Sweet Spot
Turning 60 is a game-changer for your super. Here’s why:
Tax-Free Super Withdrawals:
At 60, once you retire, you can access your super tax-free—whether as a lump sum or income stream like an Account-Based Pension.
Transition to Retirement (TTR) Pension:
If you’re thinking of cutting back on work, a TTR pension can help you top up your income. Bonus: payments from a taxed super fund are tax-free at this age.
Turning 60 is also a wake-up call—it’s time to get serious about retirement planning. Whether it’s topping up your super, paying off the mortgage, or preparing for the Age Pension, now’s the moment to make those big decisions.
At 65: Full Access to Super
By 65, you get full access to your super savings—no need to retire or meet special conditions. If you have a TTR pension, it automatically converts to an Account-Based Pension, where both income payments and investment earnings are tax-free.
Alternatively, you can roll it back into an accumulation account to pause payments.
At 67: Age Pension Time
Turning 67 is the age required to be eligible to apply for the Age Pension, a benefit that could be worth over $1 million during your lifetime! Eligibility is based on your income and asset levels.
You can apply up to 13 weeks before your 67th birthday, so it’s smart to start early. If you’re not eligible for the Age Pension right away, the Commonwealth Seniors Health Card is another great option.
Special Notes for Couples
If you and your partner are different ages, it’s worth strategizing how your super is split to maximize benefits. We can help you work through the options.
At 75: Wrapping Up Contributions
After 75, voluntary super contributions generally stop, except for mandated employer contributions and downsizer contributions (still up to $300,000 per person).
Stay on Top of Your Life Milestones and What They Mean for Your Financial Future
Planning for these milestones can make a world of difference in your financial future. Don’t stress about knowing all the rules—we’re here to guide you. Whether it’s super, the Age Pension, or anything in between, we’ll help you make the most of every opportunity.
General Advice Warning - This communication has been prepared on a general advice basis only. The information has not been prepared to take into account your specific objectives, needs and financial situation. The information may not be appropriate to your individual needs and you should seek advice from your financial or tax adviser before making any investment decisions.
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