gallagher
Well-known member
Cheers Ink. Does the pension account pay interest?
Superannuation
- Thread starter The Chad
- Start date
The Chad
Well-known member
Quite a few good questions coming in. Glad I asked now!
Glad u asked, there's a good community here.
Why would anyone want the Govt to match what Harry T and Gina R put in to a superfund?
They would pay in to it how much tax they owed that year and receive all there tax back (or pay more than they owe and the govt would owe them money).
Would be such a tax rebate scheme for the super wealthy, the govt would be broke by lunchtime the second week it was brought in
mikey
Well-known member
Very similar situation to me.
Retired when I ticked over to 60; withdraw bare minimum from Super (we do have rental income as well from a property and no debt).
As I am still under my true retirement age, I have kept my Super in quite aggressive sectors. (I'm no expert so don't rely on me for advice) That had seen my balance go up considerably until the man-child started his crap.
As Supercoach has said, you don't need as much as you think if you are debt-free. I also grow a lot of vegetables and go fishing, which reduces our grocery bills a lot.
mikey
Well-known member
Another thing: If you do 'retire' and start drawing on your Super via a pension account, there is absolutely nothing to stop you going back to work - even full-time, while still drawing down on your Super. Very strange rule that one but I did take advantage of it for 18 months as I had 'an offer I could not refuse' from my previous employer.
mikey
Well-known member
Yes. And it is 100 percent tax-free, unlike your regular super earnings, which are taxed at 15 percent. My Super told me that would help me earn approximately an extra 80k over the 7 years I could take advantage of it.
That in itself was a major reason I thought I could retire early. (Once again this is not financial advice - I took a personal punt on it working.)
I went to see my super bloke about starting to take money out of my super , I am almost 69 , don’t need it just yet , but I wanted to check , he advised me to start taking out 5% each year , and because the fund makes between 5 and 8 % per year I wouldn’t lose out also I would not have to pay tax on the money my super made . I was feeling really good untill I asked him if there was a fee for him to set up this 5% each year , he said yes $4000.00 to set it up , I nearly fell if my chair 🪑. I left saying I would think about it .
I got home and phoned the super fund to ask if thus $4000.00 for real , they said yes but u can do it on line and we will talk u though it , I said how come he didn’t tell me that I could do it myself , they said that’s not what he should have done that , SO I suggest that u always check what these thefts tell u , or it could cost u heaps .
I got home and phoned the super fund to ask if thus $4000.00 for real , they said yes but u can do it on line and we will talk u though it , I said how come he didn’t tell me that I could do it myself , they said that’s not what he should have done that , SO I suggest that u always check what these thefts tell u , or it could cost u heaps .
mikey
Well-known member
Yep, do you want fries with that is not uncommon. Basic advice is free - I took what I thought good but didn't go the year by year analysis, which would have cost 4 to 5k. Have no idea what good it would have done me except give them money.
Anyone done the full analysis and was it worth it?
Tigerwould
Well-known member
I’m planning to retire (or semi-retire) at 60. I’m currently 54. I’ve been told once you turn 55 or can put all of your salary straight into your Super and not pay tax. Then withdraw X amount to live off. You do pay tax on what you withdraw. It’s called “transition to super” designed for future retirees to manage their super.
supercoach
Well-known member
Mine moved into a pension account. I have to withdraw a minimum of 4% per year and this percentage increases as you get older. They did drop the percentages during Covid but I think they have reinstated them now. I can make withdrawals above my monthly amount when ever I want. I guess all super funds are governed by the same rules and offer the same choices
supercoach
Well-known member
Iam no expert but I did a transition to retirement arrangement, where I paid in a extra 30 odd grand a year into my super . There was a maximum amount I could salary sacrifice at the time. I did this for my last five years. I think this amount has been dropped since I retired but in my day it was about 33 grand if memory serves me correctly
Tigerwould
Well-known member
Thanks SC. For people around 50 years of age it’s worth looking at “transition to retirement”. The tax breaks you get to boost up your super is well worth it.
gallagher
Well-known member
Thanks for all the imput guys! I'm 53 so my attention is starting to go to retirement planning. Some food for thought in here.
The Chad
Well-known member
Look at all us semi-oldies in the same boat.
This really is a good forum group.
This really is a good forum group.
I started focussing on it about 3 years ago and am about to turn 50 so it’s starting to become quite the focus for me. Not sure if it’s my age or getting sick of working that’s driving it🤔
I’ve been maximising my concessional contributions (through salary sacrificing) to max out the $30K per year for the last 3 years and will continue to do so for the remainder of my working life. Old Trump, who is a convicted Rapist and Felon is certainly putting a dent in my balance at the moment though
Don’t worry, u only lose if u sell ur shares , same for ur super it goes down but it will go back up , Trump, who is a convicted Rapist and Felon won’t want to hurt all his friends , they will be buying and buying then it will rocket 😳🤔😜
I noticed my post has changed Trumps name to convicted felon and rapist?? What’s that about?
gallagher
Well-known member
I've started topping up to the $30k aswell. I havn't checked the balance this week, don't want to.
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