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Retirement Planning Webinar – 2 May 2022 | Australian Catholic Superannuation

Good evening everyone and welcome to Australian Catholic Superannuation and Retirement Funds ah Retirement Planning Session on this the second of May two thousand and twenty-two. Um I presume that we've got people from all over the country. Um my name is Ray Smith. I'm the regional manager in WA. Uh I'm joined by Jolene Stockwell. Ah who's a financial planner based also in WA. And the moderator is Mr. Justin Colley ah based in our Sydney office. The slide please Jolene. Here we go. First of all, I'd like to acknowledgement of country. I'd like to acknowledge the traditional custodians of the land on which I work and live and recognise their continuing connection to land, water, and community. I pay respects to elders past, present and emerging. I should mention that if anyone wants to ask any questions, they should use the chat facility.

Um and we will deal with those either as we go or at the end of the session. Um Um and you can just log those on with us. Um because we're a financial product of course we have to give a disclaimer. Any of the advice contained in this presentation is of a general nature. And it's not taken into account your personal objectives. Financial situation or needs. Prior to acting on any of the information from this presentation you need to take into account your own financial circumstances. Consider the product's disclosure statement and target market termination for any product that you are considering and seek independent financial advice if you're unsure of what to take.

Past performance is not a guaranteed reliable indicator of past perform of future performance. One of the things that we're going to talk about this evening is retirement goals. Uh different people have different desires. Uh some people want to travel and even that can take different forms. Um some people want to spend a lot of family time. I can tell you my wife and I in the past have done several cruises and at some stage we'll probably want to get back into it. Um from an entertainment point of view or from a a from a travelling in a a domestic level. You can either go anything from camping to to glamping. Ah you might just be content doing your gardening or you might want to go to theatres and shows and things like that. But depending what you want to do will totally depend on whether or not you've got sufficient money saved to be able to do that.

And so part of this presentation is trying to provide you with information that will put you in a position where you're best served to be able to do all the things that you want to do. So on that note it's very important that you know how much money you've got in your super. Uh you should be making sure that your employer is making their contributions on time and they're up to date. Uh read an article in today's paper that they're going to chase up on a lot of employers in the building and construction industry because they're well behind. Um you want to work out What you might want to do ah and whether you want to add more to your balance and we're going to talk later on in the presentation about how you can do that ah and what limits there are as to how much you can put in You want to make sure you know how much super you are going to need ah when you get to retirement and from that point of view ah you can get assistance from our financial planning team.

Ah and it's all about meeting your desired goals. Jolly. First of all, it's worthwhile considering how much money you might need and there's in Australia, there's a one of the pillars toward retirement is the old age pension. Uh if you're a single person and you're eligible for a full old age pension, that amounts to twenty-five thousand six hundred and seventy per annum And a couple doesn't get twice that because they believe that many of the expenses are shared. So a couple combined get thirty-eight thousand It is the Australian Superannuation Funds Association have decided that for a modest income a single person needs a roundabout twenty-nine thousand 139 per annum. And a couple will need 41, 929 combined. So if you're quite content with a modest retirement then it's not inconceivable that you may be able to do that ah on just the old age pension assuming of course that you qualify for the full entitlement.

But many us have a desire to live a little bit better than a modest retirement so we want to be a little bit more comfortable. So again as for us determined that on average a single person who wants to live a comfortable retirement needs around about forty-six thousand dollars and that a couple needs somewhere closer to sixty-five. So as you can see there's a little bit of difference between what the old age pension will provide and what you need to live a comfortable lifestyle. So it's pretty important to determine or to consider putting a little bit extra into your super and making sure that you've got sufficient to live the lifestyle to which you want to become accustomed.

Um this slide actually gives you some indication of what the differences between a modest and a comfortable retirement are And at simple things like some people might be happy with takeaway food from McDonald's or from Hungry Jacks but some people want to go out more regularly to restaurants and and have fine dining. So those sorts of differences ah are what determines whether or not you have a comfortable lifestyle or a modest one. My suggestion would be if you fund toward a comfortable lifestyle and you're happy with a modest one well then you've just your money's going to last much longer. And that slide also gives you a bit of a comparison with how that relates to the old age pension which is ah arguably another step lower.

Those figures provided by Asfa ah as well which is the same association. we are Australian Catholic Super take a very holistic view to your financial situation because not everyone is adamant that all of their savings need to be in superannuation. Um there are times when you need immediate access to money so it's a it's handy to have some accessible money and that's in the form of cash in your bank accounts. Uh these days in Australia a lot of people actually own shares themselves or have purchased shares. Now some of that might have started back in the seventies and 80s when AMP demutualised and and that gave the average Australian access to owning shares and I think it's become more popular. property's always been a a very popular investment vehicle here in Australia.

Um and a lot of people have got investment properties and things like that. Um obviously the cost and the value of the family home is an an important consideration. Uh particularly from the pension point of view because your family home is not considered an asset but we'll talk about that later. And obviously our area of expertise, superannuation and some of the advantages from a tax point of view and some of the ah reasons that supers are very effective savings vehicle for people toward their retirement years. Thank you Jolene. Another important consideration is the tax benefit of using superannuation. Uh contributions into super by your employer or contributions that you make yourself are taxed at 15percent on the way in and any investment earnings that are generated in the superannuation phase are taxed at 15% or up to 15percent. That also applies in transition to retirement if you're accessing your via a pension but you're still working You still pay the 15% tax on the investment earnings.

But as soon as you move to an account based pension and that's determined by either turning 65 years of age or if you've had a cessation of employment after age 60 then money that's in ah an account based pension at that stage is not taxed on the investment earnings. So there's some benefit to have so because if you've got money in the bank and you're generating interest and that's obviously not particularly applicable at the moment but in times when you are that income needs to be declared in your tax return so you pay tax on it at the marginal tax rate so in the allocated pension the fact that you don't pay any tax on the earnings is very beneficial.

funding toward your retirement. Uh there's a couple of considerations. Uh these are the ages that people can presently get access to their superannuation. And for people who are currently aged 58 or 59 what they access from their superannuation or a pension phase is taxable. Once they turn 60 and up to age 65 it's not taxed. Uh but they still need to meet a condition of release to be able to access to it. And after age sixty-5 ah the proceeds are still not taxed. But whether if you're whether you're working or not ah you're you've got unlimited access to your money because you've met a condition of release as a consequence of turning sixty-five. One of the ways that you can get a little bit of money into superannuation is to salary sacrifice And the reason why people might want to consider that is that it's quite often applies a preferential tax treatment to your contributions into super.

We have a tiered tax structure in this country. And the more money you earn the more tax you pay. And as you can see with the various tax brackets. Um example from 45, 000 to $120, 000 your marginal tax rate is thirty-two point five percent. If you earn between 120 and one80000 and this is taxable income not just earnings so it might apply to other income that you generate. It's 37%. And if you're taxable gross income is an excess of 1 000.

First congratulations. But secondly your marginal rate is a 45% figure. It's approaching half of what you earn beyond $180, 000 goes in tax. superannuation guarantee has also been elevating of late. Um many of you would have realised on the first of July last year that the percentage went from nine and a half percent to 10%. Uh on the first of July this year it's going to go to ten and a half percent. The first of July next year. It's going to go to eleven and so on and so forth until it meets its cap of 12% on the first of July 2025. I mentioned that it might be worthwhile considering making salary sacrifice contributions. So we've done up a bit of an example here. This is a person on a salary of $100000 dollars. So their fortnightly pay is three thousand eight hundred and forty-six dollars. If they don't make any additional contributions to super the taxable portion of their income is the three thousand eight hundred and forty-six. And their take home pay after the deduction of PAYE tax is two thousand eight and $eightyfour.

If that same person elected to contribute 5 percent of their earnings into superannuation as a pre-tax salary sacrifice contribution. Thereby an amount of a 92 dollars. It reduces their taxable income by that same figure. So the taxable portion is now only $3653. take home pay has similarly reduced but as a consequence of the tax difference it's only down to two thousand 757, which is only a reduction of what they would have taken home of 1 twenty-seven but at the same time they're contributing $192 into their superannuation. That gets taxed at 15% of course as a salary sacrifice contribution provided hasn't exceeded the cap. Ah but over a period of some 10 years that is a sizable contribution to their super and based on these this particular example it's potentially a saving of seventeen thousand, 160 over a 10 year period.

What I have in facted in of course is that if you're ah income is over 250000 that eh it's slightly different and it's somewhat compromised. There's two different ways you can make contributions into super. The most obvious is the concessional contribution and that includes your employer contributions such as salaries sorry superannuation guarantee ah your employer may make additional contributions to your super you may choose to make salary sacrifice contributions as well and for those people an example of which is a self-employed person they might make personal deductible contributions ah and they're all considered to be concessional contributions and cap for that as of this financial year is twenty-seven thousand five hundred dollars and anything up to the twenty-seven thousand five hundred that is a concessional contribution going into the super is taxed at 15% on entry. On top of that, you can make additional contributions called non-concessional contributions and the limits for those as of the first of July 2021 for a person under 67 years of age.

They were able to contribute one hundred ten thousand dollars per annum and you could roll forward two additional years worth of contribution. So, over in one lump sum contribution, you could pay in $330, 000 but then that constitutes the payments for three consecutive years. 67 and 74, you couldn't bring the role forward option into play. You were limited to $110, 000 and currently there is a requirement that you have met the work test and the work test is to have done 40 hours of within any 30-day period and you had to meet that each and every financial year to be able to make the contribution but you only had to meet it once in that financial year.

So if you met the work test in July that then permitted you to make the contribution at any stage during that year. Once the new financial year started however you needed to make the work test again in order to be able to be able to make another similar contribution. And to 75 years of age there is no further opportunity to contribute into superannuation. We're going to talk in a little while about some changes that have been made but they're the limits that currently exist and they're the conditions that people have to meet to be able to make contributions. There are other ways to contribute to superannuation. So if you are currently over 65 years of age and you sell the family home which you've owned for more than 10 years, you have the capacity to make a downsizer contribution of up to three hundred thousand dollars each. you can make contributions on behalf of your spouse and your spouse can make contributions on behalf of you and in some circumstances there may be an eligibility for a rebate.

And one of the other ways to contribute to your Australian Catholic superannuation is to consider consolidating other superannuation funds. Um many people in Australia have multiple funds as a consequence of having a multiple multiple employments over their work life. And for some reason some people just don't get to the point of consolidating all all of their superannuation funds. The reality is having multiple funds means that you're paying multiple fees and it's quite possible that you're also paying multiple insurance costs as well. When can you access your access your superannuation? Cuz we've talked a lot about putting money in but obviously the purpose of that is so that at some stage you can get access to it. So at the moment if you were born before or sorry if you were born between the 1st of July nineteen sixty-two and the 30th of June 1963 your preservation age is 58 and in order to be able to access your superannuation you have to have reached your preservation age and met a condition of release.

58 and fifty-9 year olds that condition of releases to have genuinely retired with no intention of working again in the future. If you were born after the 30th of June 1964 your preservation age is 60 and anyone born after that their preservation age continues to be 60 as well. And in order to be able to access your superannuation you have to have ceased an employment arrangement after having had your sixtieth birthday We haven't put age 65 or above on the slide because irrespective of your circumstances ah you've got full access to your superannuation after your sixty-fifth birthday. So how can you access your super? Ah historically ah and I'm going back many many years. Ah when you got to retirement age you basically withdrew your money out of your super.

You put it in the bank or did whatever you needed to do with it. Um and so it was being accessed as a lump sum and that doesn't mean that you can't do it these days. But the reality is more and more people are getting considerable amounts of money in their super by the time they reach retirement. In many case it's likely to be their second biggest investment after the family home and in some cases it might even be more than the value of the family home. So more and more people are deciding to move it into an income stream and pay themselves a pension from their ah self-created superannuation fund. It's worthwhile mentioning that you can only create an allocated pension with money and super.

So quite often a lot of people as they're approaching retirement and are about to set up an allocated pension. Use that opportunity to some extra money into their super in the form of a lump sum contribution just before they retire. At this point I think I will pass over to Jolene and she'll take over. from me. Good evening everybody. Thank you for joining us. So the first pension that we're going to have a look at is the transition to retirement.

So this pension is where you've hit your preservation age. So if you're currently 58 or moving to 59 and for the rest of it's form aged sixty. But you're still working. Okay. So the key thing here is you're under 65 and you're still working. You're more than likely to have a transition to retirement pension. There are some limitations. It starts to allow you to access your super but there's rules around how much and how you can do that. So if you start a transitioner to retirement pension and you are under age 60 you will still pay some tax on the income that you draw down. But if you are over 60 then that income now becomes tax free. When you withdraw it. The investment earnings though are exactly the same as super. So whatever earnings that your account being still invested is making for you is taxed up to a maximum of fifteen. Now the accounts that you have one of the rules is that you must take a minimum payment.

And that minimum payment is legislated determined by your age. So, if you're under sixty-five, it's 4%. Now, for the last two years and the government has just announced for next financial year, they're going to continue it as well. Is that that minimum payment that everyone must make is now reduced by 50%. So, if somebody wanted and account either a transition or a full pension. The minimum amount they only need to take is 2% if you're under 65 or 2. 5% if you're 65 or over. Now above that transition to retirement allows you to take a maximum of 10percent. Okay? And that payment is per financial year. And it's 10% of your starting balance if you started midway through the year. Or of your balance that you had in that account on one July. So remember key thing is, after age sixty, it's a lot more friendly because you're not paying tax on the with schools.

But if you are 58 or 59 and you have a transition to retirement, you do get a little bit of a rebate but you're still going to pay a little bit of tax on that as well. The allocated pension, this is when you've hit a condition of release. So you've either turned 65 or if you're younger than sixty-five, it means you've hit a retirement point. So you may have changed employers, or you retired and you're not working 10 or more hours in any week. The rules change here. They open up a bit more. So the first one is the attacks on the investment earnings goes from a maximum of 15 down to zero. The minimum payment rules still apply. So those reduction from 4% to 2%. They all still reply. But you have full access. So you've unlocked your Subaru. So if you wanted to take out ad hoc sums or if you wanted to take out income more than 10% of your balance per financial Year you've got that access.

Because an allocated pension means you have unlocked your super. So you could take all of it out if you so wished. Same rules apply. If you have an allocated pension and you are 58 or 59 there is still some tax payable. But if you're over age 60 and you've got an allocated pension or if it is tax free and you can take out ad hoclump sums when the unexpected happens or when a big event family, weddings, travel, any of those things occur. within the pension stage, a Stern Catholic has two products. So, the first one is Retire Choice and it is all about the investment choice.

So, from the investment menu that you have with Australian Catholic, you can mix and match and you can choose different investments. So, anything from 100% cash to 1 00 percent shares and mixed options in between where instead of you picking and choosing how much you want in cash or how much you want in Australian shares or property, the choice of how much in each of those categories has decided that you choose overall the type of risk you have. So retired choice is all about that investment choice. Choose where you're invested and you can choose which investment you use to pull down your regular payments. There's quite a few to choose from. You can mix and match between these two columns. So the diversified options are the mixed options that are premixed.

So shares is a mix of Australian and international. Growth is a mix that has more shares than property. And then it moves down. So you go from growth to balanced conservative balance. Conservative. Capital stable. Socially responsible is similar to risk around the balanced option so it's mid to high range but it's looking at socially responsible investing which means it's focusing on companies that take a stronger stance. You can mix and match those with your single asset options as well. So this is if you have particular fondness for a category that you want slightly more investment in. You can choose that as well. Retire Smart is a pre-designed product. So it takes away that choice of where you're putting your money to be invested but also where you're drawing the money out. So it looks at trying to generate income over the long term.

And making it last as long as possible. So this is how this one works. You take your money and it's invested between growth and cash. And as the years go on The cash distributions move to cash so that you keep taking your regular payment along the way. But the growth assets stay in the background churning away and then move with the markets and sometimes you'll have more money being paid out than others when the years are really good and they flow back into there as well. Oops. Sorry I thought there was another slide in between that. With that particular mix you don't choose whether you're taking down from the growth assets or from the cash. It's automatically set up. So that all you're doing is saying I want the Retire Smart product. The growth assets are a little bit higher. So for some of our more cautious or conservative investors have a look at Retire Smart because it may not fit what you're looking four. Okay so it takes away your choice. So when you do decide you want to use it make sure you've had a look at it so you know that it suits you and what you're expecting.

Longevity is the big question we get. And people say well do I have enough? Well do you have enough? How much are you spending? How long does it need to last? Because the real question that people are asking when can I retire? It's not. When you can it's how much do you need to retire when you want? Because some people find out that if they do end up looking like they have enough they might say well you know what? I can choose to retire when I want.

So, I'm enjoying working. I might do it for a little bit longer. or they might turn around and say, well, you know what? Now that I can retire, I am out of here. So, the big questions about longevity. When we're doing financial planning, there's some concrete benefits, you know, can we help you save more for retirement? But there's also some other benefits that come from having a bit of a roadmap and a path forward.

And looking at okay well what happens if we've got some big events. We've just been through Covid. We had GFC previously. But also will it last? Because we're all living a lot longer. So we've got a bit of an example. For everybody. So this is looking at the comfortable lifestyle. Looking at a couple. They're sixty-five. But their retirement age pension age is a little bit higher than 65, but they don't want to wait until their age pensionate.

They want to stop earlier. And they've got a little bit of money each. 300000. So in total they have 600, 000 available to them. They own their own home. They don't have any debt. So longevity wise, how long will their money last? In conjunction with the age pension, it can last them through to their nineties. And that's because they're using a combination of not only their own savings but the aid pension as well. So that can provide a base for people. Now, if people want to more or if they want to retire earlier, then they're going to need more money saved to start with. And this where the income comes from. So this couple retired a little bit early.

So in the first year the purple is all of their superannuation. It's all what they're using. And then the age pension starts to kick in. They've still got a bit of assets behind them. So they're not getting the full age pension from the start. But they eventually do. And it pushes out their own savings. So their own savings can last longer as well. age pension eligibility? Are you age pension age? So it's steadily being increasing to age sixty-seven. So a lot of people say right I'll retire when I'm sixty-seven. You can still access your super from age sixty-five. That hasn't changed. Are you an Australian resident? And what assets and income do you have? So Centre will look at you both. They'll look at both your assets. Both your income together and they'll say well whichever one gives you the smaller amount that's the HP that you're going to get.

So how much are you going to get? This is your ages. So for anyone who is before 31st December 1956 then you don't have to wait until sixty-seven. Anyone after one January we've gotta wait just a little bit longer. These are the testing rates. So these were updated in March. So if you are single and you own your own home then the purple range that we're looking at. This is the full age pension. Blue you're eligible for a part age pension and the closer you get to the orange line the smaller that gets until it cuts out completely. The main thing here to take note of is that if you don't own your own home you're allowed to have more assets behind you because you're going to need it.

Cos if you don't own your own home you're going to be renting and when you're renting you can potentially be moving depending on the rental market. So this has an impact and we do need it a little bit more of an estate behind you. Same rates for couples as a homeowner. You have less before the age pension cuts out as a non-homeowner. You have more because you'll need more to support yourself with that. But as you can see as a couple, to receive part of the gauge pension, there's still a rather large allowance there. So, that allows people to even if they're only risk feeding a very small age pension to start accessing the benefits that come withholding the age pension card as well. The income test. So we see a lot of singles and a lot of couples where people are transitioning into work.

So they might start cutting back theirs especially among the teachers. Where they're looking at potentially job sharing or potentially moving to relief work. And a couple sometimes we see one person stopping work before the other. So what that means is you don't have to be a fully retired and earning no income. Before you receive the aged pension. You're still allowed to be working and earning. It just means that you'll eight part age pension.

And those are the limits there. The most that you will receive as a single person. Twenty-five 600. This is equal to the very cautious lifestyle that Ray was talking about earlier. Okay. And even as a couple thirty-eight thousand seven hundred. So if you're single you need more because you're still going to be paying your rates. You're still going to be paying your rent. Your living cost. Your utilities. And a couple you're still paying those for the split twenty-two of you.

Okay? So, there is a little bit extra there for couples but again, it's not double because some of those utilities rents, all of those, they're shared. Okay? But if you go back to those lifestyles that Ray was talking about, thirty-eight, almost 39, 000 for a couple, almost 19 and a half for a single quota. That's a lot less than that comfortable or even that modest lifestyle. So, it really is At the and and most people are trying to put themselves a little bit ahead of that because it just makes it a little bit more flexible to deal with things that may occur later in life. If you can't get the age pension enough, you may be eligible for the Commonwealth Seniors Healthcare card which does provide some benefits.

It is not asset tested. Okay. It is income tested. So, it depends on how much money you are earning. So, even if people don't the age pension card because they've got a bit too much of their own savings. If they're not working or working very little they may still be able to access some of the benefits. and the state government also has a couple of benefits as well. Now fully aware that the state government there is a lot state to state and it's not always a lot of difference but it is worth checking out that you're able to access a seniors card from your state government earlier than what you normally would be aged pension card in the Commonwealth Seniors Healthcare card. So have a look.

See what benefits are available and when they kick in for yourself so that you can try and use them as early as possible. And as Roy mentioned earlier, we've got some changes coming up in July. They were proposed a lot of them in last year's May budget and they've just become legislated recently. So, they're all starting to kick in from July. Rate, did you want to have a look at the upcoming changes? I'll take over. Thank you. Thank you, Jonathan. Yes, the government because of Covid have decided that the 50% reduction on the minimum draw down that had existed for the last two years because of COVID would be extended for another year. So, using Jolene's earlier example. A person under 65 under the age based structure has to take 4%. But with the 50% reduction obviously that's reduced to 2%. So that's the minimum. So you don't have to take that reduction but it's an opportunity for people to withdraw or draw down less if in fact they don't need it for whatever reason.

The government have also said that where historically you had to earn in excess of four hundred fifty dollars in a calendar month to warrant a superannuation, guarantee, contribution being made for you. The government have decided that all that does is disadvantage very low income earners. So what they've said is they've eliminated the four hundred and fifty dollar threshold. So after the first of July this year, if you earn any money from from gainful employment, the employer will be required to make a contribution. And again, as of the first of July this year, that is going to increase the percentage. So it was 10% of your gross ordinary time earnings. And as of the first of July 2022 that's increasing to 10 and a half percent. So everyone will be getting a little bit more into their super ah as a consequence of that increase.

Up till now and it's still currently exists until the first of July but in order to be able to make contributions of a non-concessional type to your superannuation if you are aged between 6-seven and seventy-four. I mentioned earlier that you had to meet the work test. The work test is being abolished as of the 1st of July twenty twenty-two. So if a person between 67 and 74 wants to make a non-concessional contribution to their super they will be able to do so. The limits will be $1 00, 000 a year or three 30, 000 dollars if you contribute three years worth of contributions in one. to bring forward rule is being included up until the age of 75 and as we mentioned earlier after seventyfive there are no contributions permissible. We mentioned earlier that if you're over 65 and sold the family home that you'd owned for more than 10 years that you could put up to $300, 000 into superannuation That minimum age has been reduced down to sixty. So those people between 60 and 65 who want to make a contribution to their super have the capacity to do so. And the first home buyers can now save up to $50, 000.

Ah and any earnings to use as a home deposit through the first home buyer saver scheme. Some of the other areas where our financial planners can be useful is information with regard to creating a will Uh things like power of attorney and enduring power of attorney. Uh and even whilst you're in superannuation or the pension phase. A very important issue in relation to estate planning is to nominate a beneficiary within your superannuation fund. There's a couple of different options available. There's a a binding nomination and as the name implies that binds the trustees to pay it the way you've indic there is a non-binding nomination as well which is a guide to the trustees. Previously it used to be referred to as a preferred beneficiary. Uh because that's who you would prefer the money to go to. And if that person is an eligible recipient then I'm reasonably confident that in a great many cases the trustees would pay it to that person.

But one of the other advantages of having a binding nomination is that because the trustees are bound to pay it the way you've said they don't have to do research to determine if there is anyone else out there who may be eligible to receive your proceeds. And so my experience is that people with binding nominations they're paid out a little bit quicker than those with non-binding because with the non-binding the trustees have to be sure that there isn't anyone else ah that's able ah to receive any approach your proceeds on the in the event of your death.

Our financ ial planners are also trained and well versed in the needs of aged care. Whether that's for yourself or whether you're planning for others. A lot of people baby boomers are all reaching retirement now but a great many of them have got parents who are entering aged care facilities And it is a mine filled of decisions and and choices. Uh so that's where our financial planning team can be of immense use. Ah on that very subject some of the things that our financial planners can assist you with is saving your money on your to your retirement, helping you to maximise your centrelink entitlements to give you some indication of how long your money will last when you're in retirement. Um looking at your goals short, medium and long term and establishing whether or not your current superannuation accumulation is adequate ah for those that you've got in mind.

I mentioned estate planning. Uh advice on other non superannuation superannuation investments and strategies. And also advising on your partner or family member because couples come to the Financial Planner s together because what you do will often affect your spouse and vice versa. There are other ways that we can help as well though. Uh our goal is make superannuation journey as simple as possible And so regional managers such as myself and the call centre team can assist you with general superannuation and pension ah questions.

They can provide you with forms or they can assist you to complete forms when necessary. They can provide you with ah account information. It has to be ah basic or factual but not basic. That's not the right word. Ah general or ah factual information. Ah and you if you want speak to a regional manager and you don't already have their contact details you can just call us on the fund on thirteen hundred six five eight double seven six and if the call centre team can't help you with your enquiries or if there's a need ah to be referred to a ah regional manager or a financial planner they can provide you with those appropriate referrals.

There are some people within our fund though that would like some limited advice on specific topics that don't necessarily need to see a comprehensive financial planner for that information. And a couple of examples of that are how much you can actually contribute ah so that they take into account how much your employer SG is encroaching into the $27, 500 concessional cap that exists this year.

They can due to make an informed decision on which investment option or options is most appropriate for you. They can provide you with advice on whether or not you have adequate insurance or whether or not there might be a need to request more depending on your circumstances. And they also can give you some information on the merits of considering a transition to retirement.

And you can reach those people via the same 1300 number that I mentioned earlier. there are also many people that have a more complicated ah situation. They've got many things to consider. Husband and wife. Different assets etcetera. So they would most likely need to be referred to a comprehensive financial planner for personalised advice. And they can also assist with contribution limits. You skipped ahead a bit too quick then Jolene. Yeah sorry everyone. It's alright. Debut money for on your retirement. Maximise your Centrelink Entitlements and a lot of those things that I mentioned earlier. Thanks Jolene All of that information can be obtained via the call centre. Ah but if you only during work hours and if you wanted to look at things like your account balance or whatever I would thoroughly recommend that you ah get a pin number so that you can access your own details via the member portal.

Ah all you need to do in the first instance is contact the 1300 number at the call centre and get a temporary pin number so that you can access your account. At that time would then be encouraged to change your password to something that you could remember easily. But periodically and of about 12 months ago we changed the portal and ah people had to contact us again to regain access. Ah but more and more people are actually looking up their own information for themselves and they can do it at a time that suits them. The Member of Portal's a great way to keep on top of your super Ah Provide you with the ability to make contributions.

Uh you can find out your account balance. You can change your investment options through the member portal. Uh you can work out how much insurance you have You can nominate a non-binding beneficiary. You can't do a binding beneficiary via the website because it's a legally binding document so it has to be signed and witnessed. Ah and you can't do that ah online. And there's many other things so and they probably change from time to time.

So it's probably worthwhile jumping into your member portal at least once a year just to see if there's any new ah features or functions ah that might provide you with the information you're after. So what to do right now? Certainly if you haven't already got access, get a pin number so that you can access your member portal. Uh speak to a regional manager and they can provide you with information and also referrals to the limited advice and or comprehensive advice if that's needed Or ultimately, talk to a member of our financial advice team. Our contact numbers are one three hundred six five eight double seven six. Our website is Catholic Super. com. AU.

And we have an email contact fund office at Catholic Super. com. AU. is there are any questions I would certainly encourage you to put them through to the chat line? Uh and we will answer those at our first available opportunity. Uh that may not be until tomorrow or coming days but we'll endeavour to get a response back to you as soon as we possibly can. We haven't had any questions come through during the seminar. So if there's something that you'd like to ask us before we let you go for the evening. you can open up the question and answer or the chat box as well and we'll try and get those answers to you straight away. Perfect So we'll leave the questions only for just a while longer to see if anyone pops anything in. But we want to say thank you for taking the time this evening. Uh because we do understand after a full day at work sometimes. It's not the most popular choice so thank you very much for joining us.

Uh if you do have any questions you are free to leave at this time. Thank you Jolene and thank you for your assistance as well Justin. I'll close the webinar now. Yeah no questions have come through. Thank you, Justin. Thank you, Justin. Oh I've just got one coming through now. Yep. Ah excellent. Okay so a question that has come through is, can we nominate our own investors? Okay, you can choose from our investment menu, but those are the choices that you can make. So if there is a particular company or a particular fund manager that somebody was wanting to choose, no, but you can choose from those investment venues of where you would like it to be invested. Thanks Jolene and Ray. I'll close the webinar off. Now, any other questions that come through, the local RN will contact the members in the morning.

Alright. Thank you very much. Thank you very much. Thank you, .

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Retirement Planning Webinar – 2 May 2022 | Australian Catholic Superannuation

Good evening everyone and welcome to Australian Catholic Superannuation and Retirement Funds ah Retirement Planning Session on this the second of May two thousand and twenty-two. Um I presume that we've got people from all over the country. Um my name is Ray Smith. I'm the regional manager in WA. Uh I'm joined by Jolene Stockwell. Ah who's a financial planner based also in WA. And the moderator is Mr. Justin Colley ah based in our Sydney office. The slide please Jolene.

Here we go. First of all, I'd like to acknowledgement of country. I'd like to acknowledge the traditional custodians of the land on which I work and live and recognise their continuing connection to land, water, and community. I pay respects to elders past, present and emerging. I should mention that if anyone wants to ask any questions, they should use the chat facility. Um and we will deal with those either as we go or at the end of the session. Um Um and you can just log those on with us. Um because we're a financial product of course we have to give a disclaimer. Any of the advice contained in this presentation is of a general nature. And it's not taken into account your personal objectives. Financial situation or needs. Prior to acting on any of the information from this presentation you need to take into account your own financial circumstances. Consider the product's disclosure statement and target market termination for any product that you are considering and seek independent financial advice if you're unsure of what to take.

Past performance is not a guaranteed reliable indicator of past perform of future performance. One of the things that we're going to talk about this evening is retirement goals. Uh different people have different desires. Uh some people want to travel and even that can take different forms. Um some people want to spend a lot of family time. I can tell you my wife and I in the past have done several cruises and at some stage we'll probably want to get back into it. Um from an entertainment point of view or from a a from a travelling in a a domestic level. You can either go anything from camping to to glamping. Ah you might just be content doing your gardening or you might want to go to theatres and shows and things like that. But depending what you want to do will totally depend on whether or not you've got sufficient money saved to be able to do that.

And so part of this presentation is trying to provide you with information that will put you in a position where you're best served to be able to do all the things that you want to do. So on that note it's very important that you know how much money you've got in your super. Uh you should be making sure that your employer is making their contributions on time and they're up to date. Uh read an article in today's paper that they're going to chase up on a lot of employers in the building and construction industry because they're well behind. Um you want to work out What you might want to do ah and whether you want to add more to your balance and we're going to talk later on in the presentation about how you can do that ah and what limits there are as to how much you can put in You want to make sure you know how much super you are going to need ah when you get to retirement and from that point of view ah you can get assistance from our financial planning team.

Ah and it's all about meeting your desired goals. Jolly. First of all, it's worthwhile considering how much money you might need and there's in Australia, there's a one of the pillars toward retirement is the old age pension. Uh if you're a single person and you're eligible for a full old age pension, that amounts to twenty-five thousand six hundred and seventy per annum And a couple doesn't get twice that because they believe that many of the expenses are shared. So a couple combined get thirty-eight thousand It is the Australian Superannuation Funds Association have decided that for a modest income a single person needs a roundabout twenty-nine thousand 139 per annum. And a couple will need 41, 929 combined. So if you're quite content with a modest retirement then it's not inconceivable that you may be able to do that ah on just the old age pension assuming of course that you qualify for the full entitlement.

But many us have a desire to live a little bit better than a modest retirement so we want to be a little bit more comfortable. So again as for us determined that on average a single person who wants to live a comfortable retirement needs around about forty-six thousand dollars and that a couple needs somewhere closer to sixty-five. So as you can see there's a little bit of difference between what the old age pension will provide and what you need to live a comfortable lifestyle. So it's pretty important to determine or to consider putting a little bit extra into your super and making sure that you've got sufficient to live the lifestyle to which you want to become accustomed. Um this slide actually gives you some indication of what the differences between a modest and a comfortable retirement are And at simple things like some people might be happy with takeaway food from McDonald's or from Hungry Jacks but some people want to go out more regularly to restaurants and and have fine dining.

So those sorts of differences ah are what determines whether or not you have a comfortable lifestyle or a modest one. My suggestion would be if you fund toward a comfortable lifestyle and you're happy with a modest one well then you've just your money's going to last much longer. And that slide also gives you a bit of a comparison with how that relates to the old age pension which is ah arguably another step lower. Those figures provided by Asfa ah as well which is the same association. we are Australian Catholic Super take a very holistic view to your financial situation because not everyone is adamant that all of their savings need to be in superannuation. Um there are times when you need immediate access to money so it's a it's handy to have some accessible money and that's in the form of cash in your bank accounts.

Uh these days in Australia a lot of people actually own shares themselves or have purchased shares. Now some of that might have started back in the seventies and 80s when AMP demutualised and and that gave the average Australian access to owning shares and I think it's become more popular. property's always been a a very popular investment vehicle here in Australia. Um and a lot of people have got investment properties and things like that. Um obviously the cost and the value of the family home is an an important consideration. Uh particularly from the pension point of view because your family home is not considered an asset but we'll talk about that later. And obviously our area of expertise, superannuation and some of the advantages from a tax point of view and some of the ah reasons that supers are very effective savings vehicle for people toward their retirement years. Thank you Jolene. Another important consideration is the tax benefit of using superannuation. Uh contributions into super by your employer or contributions that you make yourself are taxed at 15percent on the way in and any investment earnings that are generated in the superannuation phase are taxed at 15% or up to 15percent.

That also applies in transition to retirement if you're accessing your via a pension but you're still working You still pay the 15% tax on the investment earnings. But as soon as you move to an account based pension and that's determined by either turning 65 years of age or if you've had a cessation of employment after age 60 then money that's in ah an account based pension at that stage is not taxed on the investment earnings.

So there's some benefit to have so because if you've got money in the bank and you're generating interest and that's obviously not particularly applicable at the moment but in times when you are that income needs to be declared in your tax return so you pay tax on it at the marginal tax rate so in the allocated pension the fact that you don't pay any tax on the earnings is very beneficial. funding toward your retirement. Uh there's a couple of considerations.

Uh these are the ages that people can presently get access to their superannuation. And for people who are currently aged 58 or 59 what they access from their superannuation or a pension phase is taxable. Once they turn 60 and up to age 65 it's not taxed. Uh but they still need to meet a condition of release to be able to access to it. And after age sixty-5 ah the proceeds are still not taxed. But whether if you're whether you're working or not ah you're you've got unlimited access to your money because you've met a condition of release as a consequence of turning sixty-five. One of the ways that you can get a little bit of money into superannuation is to salary sacrifice And the reason why people might want to consider that is that it's quite often applies a preferential tax treatment to your contributions into super.

We have a tiered tax structure in this country. And the more money you earn the more tax you pay. And as you can see with the various tax brackets. Um example from 45, 000 to $120, 000 your marginal tax rate is thirty-two point five percent. If you earn between 120 and one80000 and this is taxable income not just earnings so it might apply to other income that you generate. It's 37%. And if you're taxable gross income is an excess of 1 000. First congratulations. But secondly your marginal rate is a 45% figure. It's approaching half of what you earn beyond $180, 000 goes in tax. superannuation guarantee has also been elevating of late. Um many of you would have realised on the first of July last year that the percentage went from nine and a half percent to 10%. Uh on the first of July this year it's going to go to ten and a half percent.

The first of July next year. It's going to go to eleven and so on and so forth until it meets its cap of 12% on the first of July 2025. I mentioned that it might be worthwhile considering making salary sacrifice contributions. So we've done up a bit of an example here. This is a person on a salary of $100000 dollars. So their fortnightly pay is three thousand eight hundred and forty-six dollars. If they don't make any additional contributions to super the taxable portion of their income is the three thousand eight hundred and forty-six.

And their take home pay after the deduction of PAYE tax is two thousand eight and $eightyfour. If that same person elected to contribute 5 percent of their earnings into superannuation as a pre-tax salary sacrifice contribution. Thereby an amount of a 92 dollars. It reduces their taxable income by that same figure. So the taxable portion is now only $3653. take home pay has similarly reduced but as a consequence of the tax difference it's only down to two thousand 757, which is only a reduction of what they would have taken home of 1 twenty-seven but at the same time they're contributing $192 into their superannuation.

That gets taxed at 15% of course as a salary sacrifice contribution provided hasn't exceeded the cap. Ah but over a period of some 10 years that is a sizable contribution to their super and based on these this particular example it's potentially a saving of seventeen thousand, 160 over a 10 year period. What I have in facted in of course is that if you're ah income is over 250000 that eh it's slightly different and it's somewhat compromised. There's two different ways you can make contributions into super.

The most obvious is the concessional contribution and that includes your employer contributions such as salaries sorry superannuation guarantee ah your employer may make additional contributions to your super you may choose to make salary sacrifice contributions as well and for those people an example of which is a self-employed person they might make personal deductible contributions ah and they're all considered to be concessional contributions and cap for that as of this financial year is twenty-seven thousand five hundred dollars and anything up to the twenty-seven thousand five hundred that is a concessional contribution going into the super is taxed at 15% on entry. On top of that, you can make additional contributions called non-concessional contributions and the limits for those as of the first of July 2021 for a person under 67 years of age.

They were able to contribute one hundred ten thousand dollars per annum and you could roll forward two additional years worth of contribution. So, over in one lump sum contribution, you could pay in $330, 000 but then that constitutes the payments for three consecutive years. 67 and 74, you couldn't bring the role forward option into play. You were limited to $110, 000 and currently there is a requirement that you have met the work test and the work test is to have done 40 hours of within any 30-day period and you had to meet that each and every financial year to be able to make the contribution but you only had to meet it once in that financial year.

So if you met the work test in July that then permitted you to make the contribution at any stage during that year. Once the new financial year started however you needed to make the work test again in order to be able to be able to make another similar contribution. And to 75 years of age there is no further opportunity to contribute into superannuation. We're going to talk in a little while about some changes that have been made but they're the limits that currently exist and they're the conditions that people have to meet to be able to make contributions. There are other ways to contribute to superannuation.

So if you are currently over 65 years of age and you sell the family home which you've owned for more than 10 years, you have the capacity to make a downsizer contribution of up to three hundred thousand dollars each. you can make contributions on behalf of your spouse and your spouse can make contributions on behalf of you and in some circumstances there may be an eligibility for a rebate. And one of the other ways to contribute to your Australian Catholic superannuation is to consider consolidating other superannuation funds.

Um many people in Australia have multiple funds as a consequence of having a multiple multiple employments over their work life. And for some reason some people just don't get to the point of consolidating all all of their superannuation funds. The reality is having multiple funds means that you're paying multiple fees and it's quite possible that you're also paying multiple insurance costs as well.

When can you access your access your superannuation? Cuz we've talked a lot about putting money in but obviously the purpose of that is so that at some stage you can get access to it. So at the moment if you were born before or sorry if you were born between the 1st of July nineteen sixty-two and the 30th of June 1963 your preservation age is 58 and in order to be able to access your superannuation you have to have reached your preservation age and met a condition of release. 58 and fifty-9 year olds that condition of releases to have genuinely retired with no intention of working again in the future. If you were born after the 30th of June 1964 your preservation age is 60 and anyone born after that their preservation age continues to be 60 as well.

And in order to be able to access your superannuation you have to have ceased an employment arrangement after having had your sixtieth birthday We haven't put age 65 or above on the slide because irrespective of your circumstances ah you've got full access to your superannuation after your sixty-fifth birthday. So how can you access your super? Ah historically ah and I'm going back many many years. Ah when you got to retirement age you basically withdrew your money out of your super. You put it in the bank or did whatever you needed to do with it. Um and so it was being accessed as a lump sum and that doesn't mean that you can't do it these days. But the reality is more and more people are getting considerable amounts of money in their super by the time they reach retirement. In many case it's likely to be their second biggest investment after the family home and in some cases it might even be more than the value of the family home. So more and more people are deciding to move it into an income stream and pay themselves a pension from their ah self-created superannuation fund.

It's worthwhile mentioning that you can only create an allocated pension with money and super. So quite often a lot of people as they're approaching retirement and are about to set up an allocated pension. Use that opportunity to some extra money into their super in the form of a lump sum contribution just before they retire. At this point I think I will pass over to Jolene and she'll take over. from me. Good evening everybody. Thank you for joining us. So the first pension that we're going to have a look at is the transition to retirement. So this pension is where you've hit your preservation age. So if you're currently 58 or moving to 59 and for the rest of it's form aged sixty. But you're still working. Okay. So the key thing here is you're under 65 and you're still working. You're more than likely to have a transition to retirement pension. There are some limitations. It starts to allow you to access your super but there's rules around how much and how you can do that.

So if you start a transitioner to retirement pension and you are under age 60 you will still pay some tax on the income that you draw down. But if you are over 60 then that income now becomes tax free. When you withdraw it. The investment earnings though are exactly the same as super. So whatever earnings that your account being still invested is making for you is taxed up to a maximum of fifteen. Now the accounts that you have one of the rules is that you must take a minimum payment.

And that minimum payment is legislated determined by your age. So, if you're under sixty-five, it's 4%. Now, for the last two years and the government has just announced for next financial year, they're going to continue it as well. Is that that minimum payment that everyone must make is now reduced by 50%. So, if somebody wanted and account either a transition or a full pension. The minimum amount they only need to take is 2% if you're under 65 or 2.

5% if you're 65 or over. Now above that transition to retirement allows you to take a maximum of 10percent. Okay? And that payment is per financial year. And it's 10% of your starting balance if you started midway through the year. Or of your balance that you had in that account on one July. So remember key thing is, after age sixty, it's a lot more friendly because you're not paying tax on the with schools. But if you are 58 or 59 and you have a transition to retirement, you do get a little bit of a rebate but you're still going to pay a little bit of tax on that as well. The allocated pension, this is when you've hit a condition of release. So you've either turned 65 or if you're younger than sixty-five, it means you've hit a retirement point. So you may have changed employers, or you retired and you're not working 10 or more hours in any week.

The rules change here. They open up a bit more. So the first one is the attacks on the investment earnings goes from a maximum of 15 down to zero. The minimum payment rules still apply. So those reduction from 4% to 2%. They all still reply. But you have full access. So you've unlocked your Subaru. So if you wanted to take out ad hoc sums or if you wanted to take out income more than 10% of your balance per financial Year you've got that access. Because an allocated pension means you have unlocked your super. So you could take all of it out if you so wished. Same rules apply. If you have an allocated pension and you are 58 or 59 there is still some tax payable. But if you're over age 60 and you've got an allocated pension or if it is tax free and you can take out ad hoclump sums when the unexpected happens or when a big event family, weddings, travel, any of those things occur. within the pension stage, a Stern Catholic has two products. So, the first one is Retire Choice and it is all about the investment choice.

So, from the investment menu that you have with Australian Catholic, you can mix and match and you can choose different investments. So, anything from 100% cash to 1 00 percent shares and mixed options in between where instead of you picking and choosing how much you want in cash or how much you want in Australian shares or property, the choice of how much in each of those categories has decided that you choose overall the type of risk you have. So retired choice is all about that investment choice. Choose where you're invested and you can choose which investment you use to pull down your regular payments. There's quite a few to choose from. You can mix and match between these two columns. So the diversified options are the mixed options that are premixed. So shares is a mix of Australian and international. Growth is a mix that has more shares than property. And then it moves down.

So you go from growth to balanced conservative balance. Conservative. Capital stable. Socially responsible is similar to risk around the balanced option so it's mid to high range but it's looking at socially responsible investing which means it's focusing on companies that take a stronger stance. You can mix and match those with your single asset options as well. So this is if you have particular fondness for a category that you want slightly more investment in. You can choose that as well. Retire Smart is a pre-designed product. So it takes away that choice of where you're putting your money to be invested but also where you're drawing the money out. So it looks at trying to generate income over the long term.

And making it last as long as possible. So this is how this one works. You take your money and it's invested between growth and cash. And as the years go on The cash distributions move to cash so that you keep taking your regular payment along the way. But the growth assets stay in the background churning away and then move with the markets and sometimes you'll have more money being paid out than others when the years are really good and they flow back into there as well. Oops. Sorry I thought there was another slide in between that. With that particular mix you don't choose whether you're taking down from the growth assets or from the cash. It's automatically set up. So that all you're doing is saying I want the Retire Smart product. The growth assets are a little bit higher. So for some of our more cautious or conservative investors have a look at Retire Smart because it may not fit what you're looking four.

Okay so it takes away your choice. So when you do decide you want to use it make sure you've had a look at it so you know that it suits you and what you're expecting. Longevity is the big question we get. And people say well do I have enough? Well do you have enough? How much are you spending? How long does it need to last? Because the real question that people are asking when can I retire? It's not. When you can it's how much do you need to retire when you want? Because some people find out that if they do end up looking like they have enough they might say well you know what? I can choose to retire when I want. So, I'm enjoying working. I might do it for a little bit longer. or they might turn around and say, well, you know what? Now that I can retire, I am out of here.

So, the big questions about longevity. When we're doing financial planning, there's some concrete benefits, you know, can we help you save more for retirement? But there's also some other benefits that come from having a bit of a roadmap and a path forward. And looking at okay well what happens if we've got some big events. We've just been through Covid. We had GFC previously. But also will it last? Because we're all living a lot longer. So we've got a bit of an example. For everybody. So this is looking at the comfortable lifestyle. Looking at a couple. They're sixty-five. But their retirement age pension age is a little bit higher than 65, but they don't want to wait until their age pensionate. They want to stop earlier. And they've got a little bit of money each. 300000. So in total they have 600, 000 available to them. They own their own home. They don't have any debt. So longevity wise, how long will their money last? In conjunction with the age pension, it can last them through to their nineties.

And that's because they're using a combination of not only their own savings but the aid pension as well. So that can provide a base for people. Now, if people want to more or if they want to retire earlier, then they're going to need more money saved to start with. And this where the income comes from. So this couple retired a little bit early. So in the first year the purple is all of their superannuation. It's all what they're using. And then the age pension starts to kick in. They've still got a bit of assets behind them. So they're not getting the full age pension from the start. But they eventually do. And it pushes out their own savings. So their own savings can last longer as well. age pension eligibility? Are you age pension age? So it's steadily being increasing to age sixty-seven.

So a lot of people say right I'll retire when I'm sixty-seven. You can still access your super from age sixty-five. That hasn't changed. Are you an Australian resident? And what assets and income do you have? So Centre will look at you both. They'll look at both your assets. Both your income together and they'll say well whichever one gives you the smaller amount that's the HP that you're going to get. So how much are you going to get? This is your ages. So for anyone who is before 31st December 1956 then you don't have to wait until sixty-seven. Anyone after one January we've gotta wait just a little bit longer. These are the testing rates. So these were updated in March. So if you are single and you own your own home then the purple range that we're looking at. This is the full age pension. Blue you're eligible for a part age pension and the closer you get to the orange line the smaller that gets until it cuts out completely.

The main thing here to take note of is that if you don't own your own home you're allowed to have more assets behind you because you're going to need it. Cos if you don't own your own home you're going to be renting and when you're renting you can potentially be moving depending on the rental market. So this has an impact and we do need it a little bit more of an estate behind you. Same rates for couples as a homeowner. You have less before the age pension cuts out as a non-homeowner.

You have more because you'll need more to support yourself with that. But as you can see as a couple, to receive part of the gauge pension, there's still a rather large allowance there. So, that allows people to even if they're only risk feeding a very small age pension to start accessing the benefits that come withholding the age pension card as well. The income test. So we see a lot of singles and a lot of couples where people are transitioning into work. So they might start cutting back theirs especially among the teachers. Where they're looking at potentially job sharing or potentially moving to relief work. And a couple sometimes we see one person stopping work before the other. So what that means is you don't have to be a fully retired and earning no income. Before you receive the aged pension.

You're still allowed to be working and earning. It just means that you'll eight part age pension. And those are the limits there. The most that you will receive as a single person. Twenty-five 600. This is equal to the very cautious lifestyle that Ray was talking about earlier. Okay. And even as a couple thirty-eight thousand seven hundred. So if you're single you need more because you're still going to be paying your rates. You're still going to be paying your rent.

Your living cost. Your utilities. And a couple you're still paying those for the split twenty-two of you. Okay? So, there is a little bit extra there for couples but again, it's not double because some of those utilities rents, all of those, they're shared. Okay? But if you go back to those lifestyles that Ray was talking about, thirty-eight, almost 39, 000 for a couple, almost 19 and a half for a single quota.

That's a lot less than that comfortable or even that modest lifestyle. So, it really is At the and and most people are trying to put themselves a little bit ahead of that because it just makes it a little bit more flexible to deal with things that may occur later in life. If you can't get the age pension enough, you may be eligible for the Commonwealth Seniors Healthcare card which does provide some benefits.

It is not asset tested. Okay. It is income tested. So, it depends on how much money you are earning. So, even if people don't the age pension card because they've got a bit too much of their own savings. If they're not working or working very little they may still be able to access some of the benefits. and the state government also has a couple of benefits as well. Now fully aware that the state government there is a lot state to state and it's not always a lot of difference but it is worth checking out that you're able to access a seniors card from your state government earlier than what you normally would be aged pension card in the Commonwealth Seniors Healthcare card.

So have a look. See what benefits are available and when they kick in for yourself so that you can try and use them as early as possible. And as Roy mentioned earlier, we've got some changes coming up in July. They were proposed a lot of them in last year's May budget and they've just become legislated recently. So, they're all starting to kick in from July. Rate, did you want to have a look at the upcoming changes? I'll take over. Thank you. Thank you, Jonathan. Yes, the government because of Covid have decided that the 50% reduction on the minimum draw down that had existed for the last two years because of COVID would be extended for another year. So, using Jolene's earlier example. A person under 65 under the age based structure has to take 4%. But with the 50% reduction obviously that's reduced to 2%. So that's the minimum.

So you don't have to take that reduction but it's an opportunity for people to withdraw or draw down less if in fact they don't need it for whatever reason. The government have also said that where historically you had to earn in excess of four hundred fifty dollars in a calendar month to warrant a superannuation, guarantee, contribution being made for you. The government have decided that all that does is disadvantage very low income earners. So what they've said is they've eliminated the four hundred and fifty dollar threshold. So after the first of July this year, if you earn any money from from gainful employment, the employer will be required to make a contribution. And again, as of the first of July this year, that is going to increase the percentage. So it was 10% of your gross ordinary time earnings. And as of the first of July 2022 that's increasing to 10 and a half percent.

So everyone will be getting a little bit more into their super ah as a consequence of that increase. Up till now and it's still currently exists until the first of July but in order to be able to make contributions of a non-concessional type to your superannuation if you are aged between 6-seven and seventy-four. I mentioned earlier that you had to meet the work test. The work test is being abolished as of the 1st of July twenty twenty-two. So if a person between 67 and 74 wants to make a non-concessional contribution to their super they will be able to do so. The limits will be $1 00, 000 a year or three 30, 000 dollars if you contribute three years worth of contributions in one. to bring forward rule is being included up until the age of 75 and as we mentioned earlier after seventyfive there are no contributions permissible.

We mentioned earlier that if you're over 65 and sold the family home that you'd owned for more than 10 years that you could put up to $300, 000 into superannuation That minimum age has been reduced down to sixty. So those people between 60 and 65 who want to make a contribution to their super have the capacity to do so. And the first home buyers can now save up to $50, 000. Ah and any earnings to use as a home deposit through the first home buyer saver scheme. Some of the other areas where our financial planners can be useful is information with regard to creating a will Uh things like power of attorney and enduring power of attorney. Uh and even whilst you're in superannuation or the pension phase. A very important issue in relation to estate planning is to nominate a beneficiary within your superannuation fund.

There's a couple of different options available. There's a a binding nomination and as the name implies that binds the trustees to pay it the way you've indic there is a non-binding nomination as well which is a guide to the trustees. Previously it used to be referred to as a preferred beneficiary. Uh because that's who you would prefer the money to go to. And if that person is an eligible recipient then I'm reasonably confident that in a great many cases the trustees would pay it to that person. But one of the other advantages of having a binding nomination is that because the trustees are bound to pay it the way you've said they don't have to do research to determine if there is anyone else out there who may be eligible to receive your proceeds.

And so my experience is that people with binding nominations they're paid out a little bit quicker than those with non-binding because with the non-binding the trustees have to be sure that there isn't anyone else ah that's able ah to receive any approach your proceeds on the in the event of your death. Our financ ial planners are also trained and well versed in the needs of aged care. Whether that's for yourself or whether you're planning for others. A lot of people baby boomers are all reaching retirement now but a great many of them have got parents who are entering aged care facilities And it is a mine filled of decisions and and choices. Uh so that's where our financial planning team can be of immense use. Ah on that very subject some of the things that our financial planners can assist you with is saving your money on your to your retirement, helping you to maximise your centrelink entitlements to give you some indication of how long your money will last when you're in retirement. Um looking at your goals short, medium and long term and establishing whether or not your current superannuation accumulation is adequate ah for those that you've got in mind.

I mentioned estate planning. Uh advice on other non superannuation superannuation investments and strategies. And also advising on your partner or family member because couples come to the Financial Planner s together because what you do will often affect your spouse and vice versa. There are other ways that we can help as well though. Uh our goal is make superannuation journey as simple as possible And so regional managers such as myself and the call centre team can assist you with general superannuation and pension ah questions. They can provide you with forms or they can assist you to complete forms when necessary. They can provide you with ah account information.

It has to be ah basic or factual but not basic. That's not the right word. Ah general or ah factual information. Ah and you if you want speak to a regional manager and you don't already have their contact details you can just call us on the fund on thirteen hundred six five eight double seven six and if the call centre team can't help you with your enquiries or if there's a need ah to be referred to a ah regional manager or a financial planner they can provide you with those appropriate referrals. There are some people within our fund though that would like some limited advice on specific topics that don't necessarily need to see a comprehensive financial planner for that information. And a couple of examples of that are how much you can actually contribute ah so that they take into account how much your employer SG is encroaching into the $27, 500 concessional cap that exists this year.

They can due to make an informed decision on which investment option or options is most appropriate for you. They can provide you with advice on whether or not you have adequate insurance or whether or not there might be a need to request more depending on your circumstances. And they also can give you some information on the merits of considering a transition to retirement. And you can reach those people via the same 1300 number that I mentioned earlier. there are also many people that have a more complicated ah situation. They've got many things to consider. Husband and wife. Different assets etcetera. So they would most likely need to be referred to a comprehensive financial planner for personalised advice. And they can also assist with contribution limits. You skipped ahead a bit too quick then Jolene. Yeah sorry everyone. It's alright. Debut money for on your retirement. Maximise your Centrelink Entitlements and a lot of those things that I mentioned earlier.

Thanks Jolene All of that information can be obtained via the call centre. Ah but if you only during work hours and if you wanted to look at things like your account balance or whatever I would thoroughly recommend that you ah get a pin number so that you can access your own details via the member portal. Ah all you need to do in the first instance is contact the 1300 number at the call centre and get a temporary pin number so that you can access your account.

At that time would then be encouraged to change your password to something that you could remember easily. But periodically and of about 12 months ago we changed the portal and ah people had to contact us again to regain access. Ah but more and more people are actually looking up their own information for themselves and they can do it at a time that suits them. The Member of Portal's a great way to keep on top of your super Ah Provide you with the ability to make contributions. Uh you can find out your account balance. You can change your investment options through the member portal. Uh you can work out how much insurance you have You can nominate a non-binding beneficiary. You can't do a binding beneficiary via the website because it's a legally binding document so it has to be signed and witnessed. Ah and you can't do that ah online. And there's many other things so and they probably change from time to time. So it's probably worthwhile jumping into your member portal at least once a year just to see if there's any new ah features or functions ah that might provide you with the information you're after.

So what to do right now? Certainly if you haven't already got access, get a pin number so that you can access your member portal. Uh speak to a regional manager and they can provide you with information and also referrals to the limited advice and or comprehensive advice if that's needed Or ultimately, talk to a member of our financial advice team. Our contact numbers are one three hundred six five eight double seven six. Our website is Catholic Super.

Com. AU. And we have an email contact fund office at Catholic Super. com. AU. is there are any questions I would certainly encourage you to put them through to the chat line? Uh and we will answer those at our first available opportunity. Uh that may not be until tomorrow or coming days but we'll endeavour to get a response back to you as soon as we possibly can. We haven't had any questions come through during the seminar. So if there's something that you'd like to ask us before we let you go for the evening.

You can open up the question and answer or the chat box as well and we'll try and get those answers to you straight away. Perfect So we'll leave the questions only for just a while longer to see if anyone pops anything in. But we want to say thank you for taking the time this evening. Uh because we do understand after a full day at work sometimes. It's not the most popular choice so thank you very much for joining us. Uh if you do have any questions you are free to leave at this time. Thank you Jolene and thank you for your assistance as well Justin. I'll close the webinar now. Yeah no questions have come through. Thank you, Justin. Thank you, Justin.

Oh I've just got one coming through now. Yep. Ah excellent. Okay so a question that has come through is, can we nominate our own investors? Okay, you can choose from our investment menu, but those are the choices that you can make. So if there is a particular company or a particular fund manager that somebody was wanting to choose, no, but you can choose from those investment venues of where you would like it to be invested. Thanks Jolene and Ray. I'll close the webinar off. Now, any other questions that come through, the local RN will contact the members in the morning. Alright. Thank you very much.

Thank you very much. Thank you, .

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Member retirement process

it's time for a fresh take on retirement at Catholic super we don't believe people retire it isn't about bowing out stepping down or pulling back retirement is a time of promise and possibility a chance to re-fire rewire renew so what might your retirement look like whether it's years away or just around the corner it's never too early or too late to start planning your next chapter start by asking yourself what type of Lifestyle do you want to have and how much income will you need to support it will your superb be enough where does the age pension fit in how will you invest your money in retirement and how will you transition your money there's a lot to consider but you're not alone a Catholic super we've helped thousands of Australians retire with confidence make a start today use our online retirement income calculator to see how you're tracking so far explore our knowledge Hub to learn more about retirement what's involved and how to prepare book an appointment with one of our financial advisors an initial appointment is available at no extra charge simply complete our online booking form or call us directly on 1-800-065-753 and let's start writing your next chapter foreign

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Retirement Planning Webinar – 11 November 2021 | Australian Catholic Superannuation

As well as we'' ll simply give it a number of even more minutes to ensure that everyone in the waiting space can join us. Welcome everyone. Okay we'' ll get begun. Hi, everybody. My name'' s Tanya. I ' m one of the regional supervisors for Australian Catholic Super. I ' m based in Canberra. My office is on the ground flooring in the Saint Christopher ' s Pastoral Centre in Monica. As well as our topic today is one of my absolute favourites. Retired life planning. I assume it'' s a fantastic subject. I recognize it can be daunting for some people. But the reason that I truly appreciate this subject is because I'' ve seen just how much of a positive impact Super can have on people'' s retired life and their lives. So even if retirement isn'' t impending for you it'' s still vital to focus on your super to understand the role can play in what we hope is a pleasurable retired life for you. And also joining me today are my associates Phil Johnson. I feel. Hi there Tanya. Phil'' s one of our monetary planners.And ah Justin Colley ' s behind-the-scenes. He ' ll be monitoring the chat box. And also ah join us at the end if we ' ve obtained time for inquiries and also responses. Just to allow you know the presentation will be online streamed on Facebook and there will certainly be a recording offered on our YouTube network tomorrow. And also if you do desire to ask any type of questions or make any type of comments please ah make certain that you kind them into the chat box. And also Justin will be moderating them which you wear ' t answer. If you can'or state your concerns with to the end. This ' s for you Phil. Oh thanks'Tanya. Excellent evening everybody. Um just before we begin we ' d similar to to acknowledge the typical custodians of of the land on which we work as well as live as well as identify the continuing connection to the land, the water, as well as the community.I ' d like

to pay respect to the senior citizens, past, present and arising. Thanks Additionally prior to we begin, please note that any kind of details we provide in this discussion is genuinely nature. It'' s made to highlight what you can do, not always what you should do. So please put on'' t take any type of action based upon this details before taking into consideration how it puts on your own individual situations. Purposes or demands and constantly make sure you read the product disclosure statement and also target audience before you make any financial investments and also consider seeking economic recommendations to identify your finest course of activity. At Australian Catholic Super we have our own team of monetary coordinators such as Phil who can assist. Um during today we'' ll also be examining the performance of a few of our financial investments. Please additionally take note that past efficiency is not a dependable indication of future efficiency. For me, this is the enjoyable part of Retirement Planning.Thinking regarding the kind of way of living you ' d like to delight in but Phil, what do you take into consideration is important when assisting members at this phase of retired life planning? Yeah, Tanya. Yeah, I imply, this is really the start of the financial planning trip with retired life preparation. Um so, you recognize, economic coordinators, certainly, we speak a whole lot regarding funds as well as how individuals are mosting likely to fund their retired life yet obviously, it ' s all all those financial choices are all based upon, you know, what you ' re going to perform in your life as well as what your plans are for your retired life as well as we,'you recognize, typically utilize that as a beginning point to try to exercise what kind of points people are intending to attain, they delight in, kind of that they will certainly be requiring you understand cash money for or getting cash during their their the program of their retired life So.I suggest simply a few of things that people perform with their cash are detailed noted there. You understand undoubtedly a big one is is traveling.

I mean place ' t seen a great deal of that in the last two years obviously with with Covid unfortunately you know let ' s wish it ' s all beginning to go back to a normal state and you know obviously takes a trip beginning once more literally as we as we speak isn ' t it? But you understand look lots of things individuals like to horticulture, outdoor camping, theatre, travel, all those kinds of things. We'you know what are those type of points? Let ' s obtain them out on the table as component of the process of trying to exercise exactly how we we produce a prepare for you.Mm thanks Paul. That ' s great. A great deal of individuals aren ' t certain regarding the quantity of income they may require in retired life which is one of the most typical'questions we obtain as well as you recognize when we ' re speaking about what your retired life goals are it ' s terrific to to be clear on what you ' d like to achieve as well as simply placed some I guess some dollars next to objectives but we are often refer to aspa which is brief for the Association of Super Finances of Australia that release a guideline on the quantity of revenue you might need to sustain a modest or comfortable way of living in retired life. So you can see that the complete age pension really pays less than what aspa constituents as a small lifestyle and also considerably less than what asphalt assumes is the cost of the comfortable lifestyle.Phil can you take us with just how you make use of information from Bronchial asthma to help our participants with their retired life preparation. Well it ' s you understand it ' s a base. everybody is is is different.

Um and so you recognize of course it ' s a really common concern. Two really common concerns. Just how much cash do I need for my retired life and how much you recognize can I invest or will I invest? and also as I said well every person ' s everybody every person ' s various. Um yet these figures below which are you understand an outcome of a survey of Australians in retired life offer a an indication of what you recognize the averages that are spent are so'you know clearly as you'can see from the from the numbers if you would certainly like I ' ll rephrase that Australians usually as a pair as an example comfy retirement is about sixty-three thousand dollars whereas something that ' s called an extra small way of living individuals typically would certainly invest about forty-one. Um and also then naturally there ' s the the age pension. Um and also it ' s there. We we put the age pension there to you know as Tanya ' s already said. I indicate to compare it for you. You can see that if for a couple

the max significant pension you can get has to do with thirty-seven thousand dollars. which isn ' t quite enough also for a a'moderate way of life. So of course that ' s that ' s how we make use of the numbers truly to help individuals to start to get a feeling for what is spent on typical yet as part of the Financial Preparation procedure we ' ll we really attempt to be a little bit more accurate than that as in our preparation by speaking to you about what what we assume you might need.Mm. Among the fascinating points about this as'for research is you understand a great deal of individuals commonly claim well what ' s that? What ' s the amount of incredibly I should have? And also I looked right into it and aspathy that you only require regarding seventy 000 conserved in your very to money that modest way of life due to the fact that a huge component of your lifestyle expenditures will be covered'by the age pension.So that ' s$70, 000 is actually just mosting likely to connect that void between small as well as fuller age avoidance but yeah. And also the figure going extending that is I believe it ' s 6 hundred and forty thousand for comfortable. That ' s right. That ' s. Yeah. Yeah. There ' s there ' s a large difference between both. Yes. Yes. Yes. I I believe it ' s a, you know, I assume it ' s a really great factor you made. I indicate, the thing is the number of times have I heard people state, oh my friends told me I require a million dollars. Mm. You know, to to retire and well, that possibly best however on a regular basis you you wear ' t demand possibly as much as what you believe as a result of the the influence at some time in your retirement getting some kind of support from the federal government. generally in the type of the age pension. Hm. Yeah. We we actually discuss that a little in the future in the discussion where we have an appearance at some what we call retirement forecasts as well as we can take you with exactly how that will certainly play out.Pretty interesting. The information also gets on this slide. This is where Aspen damage down. The I think features of the comfortable and also small retired life or or what you might potentially manage simply on the age pension.

If you obtained any remarks around this? Uh yes well that that that ' s it ' s all you recognize That ' s a fascinating point clearly. Um you know what what do they suggest by this moderate and also you understand comfy terms. Currently, I ' m sorry the the writing ' s a bit a bit a bit little but the list there do try to as for do attempt to discuss sort of roughly what they indicate by several of the by those terms and also they simplify right into you know, a'a variety of various elements of your costs. I suggest, for instance, the leading one is chatting about holidays. To make sure that ' s crucial to a great deal of people. Um you understand what ' s comfy you recognize so it claims you recognize you can have a holiday a yearly holiday. Um in Australia. yet what ' s small? Um well a couple of time-outs in a in Australia near where you live.So, it doesn ' t seem like you ' re fairly taking a trip quite as far. No, we ' re not mosting likely to Paris every year. Yeah, yeah, yeah, that ' s, that, that ' s, that ' s, that ' s right, and also, as well as as well as you know, you understand,'simply, you'understand, type of extending, I won ' t clearly experience the entire table with us this evening, we ' re mosting likely to be here as well', way too long, yet but and this details ' s on the Asfa internet site by'the method. Um, however you understand, it speaks about other, other points like, what ' s the you know, discussing, you understand, going to a a dining establishment and also the last column there speaks about what an age pensioner can do, it discusses having the the club Unique. You understand, whereas the the the individual in the comfy retirement can you understand can pay for, you recognize, clearly, you understand, to go to a much better high quality restaurant than and also points like points like this. So, you recognize, look, it ' s a bit of a rough tool.It is a rough device. It attempts to provide you, it attempts to provide you a concept. Yeah. The restriction stands apart to me is the the bottle of white wine versus the residence mixture. Yes, Yes. Yeah. Yeah. That that ' s that ' s right. So, it appears like all the age pensioners are on the home brew from from from'this from this table. Yeah what are some of the resources for funding retired life Yeah so you recognize I suggest we the recent kind of behind this this slide is you ' re here this evening chatting to ah me from a a financial coordinator functioning for a very fund but there'there ' s a lot a lot more well it can be a great deal even more to just how you money your retired life than than simply your incredibly. Obviously super is very important. There ' s you understand there ' s no question regarding that. However quite typically individuals have some of investment so could be money in'the bank or shares. Occasionally individuals have intending on spending or have invested in you understand financial investment buildings as well as they have rental income.That might be part of the component of their time and plan. Um the household home is on that on this chart in an example that would be you recognize the great deal of individuals intend on downsizing at some time. not always for monetary reasons. But in some cases it clearly also releases funding that can be utilized to money retirement. So it ' s simply give you the suggestion that you know when when we ' re doing the financial preparation we ' re we ' re taking you ' re trying to take the whole circumstance into account not just the not simply the super.Yeah wonderful. Thank you. As well as Phil can you'please explain the tax advantages spending within Super for Retirement in contrast to I presume those other yeah yes yes. I suggest I think a great deal of individuals are type of type of really generally mindful that very is an excellent investment in terms of tax compared to a whole lot of various other investment. This client ' s just quite attempting to merely measure that for people. If if you wear ' t recognize Um extremely extremely funds only pay 15 %tax on the earnings when you ' re in the in the stage where you ' re still contributing right into the super.Um then yet when you move to a pension after that the tax can be can be the exact same as extremely'when you ' re in what ' s called a shift to retirement

pension. For a great deal of individuals when they retire they ' re beginning they ' re not starting transition to retirement pensions. They ' re beginning the what the the item on the on the right there. Account based pensions. There ' s no tax on the earnings. And so look once again type of at a high level. I believe people would most likely have the ability to see look it ' s wonderful if you can have an account-based pension plan pay no tax obligation. Well that ' s undoubtedly very good. Even incredibly paying 15 %tax obligation while you ' re still working change to a time pension.' It ' s still reduced tax obligation. As well as that ' s you understand that ' s extremely you recognize that that, over the long-term, that makes a big distinction for money you can conserve for your retirement Mm, I truly like that meal tax regulation portion of that slide there. I believe that ' s, that ' s one of the points that'truly informs the tale about exactly how extremely emulation jobs as well as we ' ll touch on that a little later on also. Superb. As well as Phil, can you please take us via when someone can access their soup bar and also under what conditions? What? Yes, yeah, that ' s that ' s that'' s right. When again, we'' ve tried to sort of provide put it into you can access your or when you you recognize start to draw down or money your retirement when can you start to get access to your extremely and we'' ve type of damaged down to say three wide groups. Um if you retire after after age 58 at the minute. after that you will certainly be able to access your super. Um now I simply wish to caution everyone that is providing that'' s of that age. Um there are tax potential tax repercussions of doing it under sixty. Um however indeed it can be accessed if you if you retire at that age. Um as well as that'' s you need to admit what'' s called your preservation age is the is the technical word for it.Um you in between 60 as well as 64 you you can access your extremely well if you retire but in enhancement to that if you leave a task so you put on'' t really have to retire if you alter work so you recognize rather frequently individuals I speak with they'' re not actually retiring at 62 for instance they'' ve made a decision to go you know they could determine to work less hrs in a different work or something like that they can still prospective accessibility their their their very. At age 65 however points come to be rather basic regarding accessing the incredibly due to the fact that primarily at sixty-five no matter whether you'' re functioning or otherwise you you can access your very. So all problems are raised at 65 under the existing costs. Yes. I'' ve got a I ' ve obtained a concern as well as one that often a great deal of my participants that that send me in Canberra ask me.There ' s a

great deal of college teachers as well as as well as a great deal of teachers as they'' re coming close to retirement They. really would have an interest in remaining on guides in a manner of speaking as well as perhaps doing some laid-back training. If if that'' s someone that you'' re supplying guidance to and they'' re under the age of sixty-five would they still be able to access that super if they remain with their employer but you'' re from complete time to function component time or laid-back. Um my understanding is that in the Catholic education system that if there'' s if they ' re remaining with helping the exact same diocese. Mm. Um then that wouldn'' t be that wouldn ' t be a that would certainly not be thought about feasible. No. No that'' s what I believed to do. To make sure that'' s certainly one to people to bear in mind when they are thinking about what they'' re mosting likely to do at that tail end of their profession and you understand that may be worth having a conversation with payroll or yeah.One of your regional supervisors or among our monetary consultants on how to deal with framework which plan to enable you to access your extremely. Okay. And fuel. Why is wage sacrifice? Oh all right so so we ' re now talking about adding to super and also we are kind of on this style regarding the benefits of super and among things you can do in incredibly is income sacrifice which I believe a great deal of people understand and also what is the the point of wage compromising or placing cash right into super out of your income. Um well the concept is that you can possibly conserve tax. So, this slide is simply basically attempting to direct present us to this concept of the minimal tax price system which individuals gaining various quantities clearly pay different prices of tax obligation. I think most individuals generally understand that. So, may be, may go the following slide. So having, you know, having type of you know, you know, standard knowledge that is the limited tax obligation price system there ' s a little instance below which tries to reveal you what the the claim a tax obligation saving that a participant can make if they determined to do a little bit of wage sacrifice to super.So in this this instance this I assume this yeah they earn a hundred 000 a year.

Um and also on the table on the left hand side the person is not making any kind of salary sacrifice contributions to super and on the right hand side they income sacrifice five percent of the income. And also everything is relied on a on a on a biweekly basis to try to show individuals what really happens on your on your payslip kind of point. Um so once again keeping that you understand going into excellent information I believe you can kind of just following down the 2 columns. You can see that this individual they go from refraining any type of sorry sacrifice to doing$ 192 a fortnight. Okay. Um since a hundred and also ninety-two bucks is a tax obligation reductions. Um so, you can see there when the gross income on row is there that the individual ' s taxable income has actually lowered and since their taxed income has minimized, they will certainly pay less tax obligation but what it ' s attempting to reveal you there when the take home pay is that they do obtain they do obtain a 27 less pay.So, you do', you understand, sorry sacrifice does indicate you you put on ' t you wear ' t have the very same

amount of take residence pay but you haven lost the entire a hundred and also ninetytwo. So you'had actually 192 appeared of your income compromised off to incredibly. A hundred and also ninety-two However your pay just dropped 127 As well as the distinction in between those 2 numbers which is what regarding sixty-six dollars. That ' s the tax saving.So that ' s that ' s the saving you save money on the tax obligation. As well as after that you can see right down the bottom row it tries to calculate it around for us. It claims that that would just just little example alone doing a hundred and ninety-two a fortnight. Um this person would certainly save one thousand 7 hundred $16 per year. and once more extremely if you ' re doing that for a a long period of time which individuals remain in incredibly due to the fact that it ' s you know it ' s a long term investment. Um that ' s seventeen 000 extra conserved'in in in tax. Which'money ' s also placed in super and the strategy for that is to expand at the very same time as well in the tax efficient atmosphere. That ' s right.

Yes. Not just is saving that much tax obligation over the 10 years, yet you'' re also expanding your incredibly and also ideally you obtain that intensifying effect where you know it'' s snowball into a great little yeah that'' s that'' s that ' s. Fantastic. Okay. Right here ' s a technical slide and also I ' ll try not to obtain also slowed down in the information. What we'' re speaking concerning here are the different types of contributions. We ' re going to begin with what ' s called concessional contributions. And the reason we'' ve used World Wild the the not we yet why the term concessional is utilized. It'' s one more word for decreased price or a price cut. In various other words many people for a lot of individuals concessional payments are less costly than a non-concessional contribution. This is the means of the federal government'' s giving us a reward by way of a tax obligation microtex price cut to save right into super.So we can have even more cash at retirement and count less on the government. So there ' s technique in the chaos. Okay so you ' ll see on this slide we ' ve highlighted that these types of payments are taxed at a flat rate of 15%for those people with income much less than $250, 000. Per annum. As well as you may remember a pair of slides back we were chatting concerning the minimal tax prices and also the low tax prices to keep in mind. Uh they were from 18%all the means as much as 45%and also that ' s without consisting of Medicare Levi. So this is another factor why we are encouraging individuals to conserve into very. But since of this bargain that the federal government is giving us with this tax obligation break or tax obligation incentive. They ' ve likewise put a cap on this. The yearly cap for this year is 27'and also a half thousand dollars. As well as that 27 and a half 000, catches every one of those different kinds of concessional payment so it ' s your superannuation guarantee which are now 10%of your income per annum.It ' s with your income sacrifice. As well as it ' s crucial to remember that if you have even more than one'incredibly fund the cap takes into consideration contributions going to every one of the extremely funds.

I mean place ' t seen a lot of that in the last two years obviously with with Covid however you recognize allow ' s wish it ' s all starting to go back to a regular state as well as you know undoubtedly takes a trip beginning once again actually as we as we talk isn ' t it? A whole lot of individuals aren ' t sure about the quantity of income they could need in retired life which is one of the most common'inquiries we obtain as well as you know when we ' re speaking regarding what your retirement goals are it ' s terrific to to be clear on what you ' d like to attain and also just put some I guess some dollars following to objectives but we are usually refer to aspa which is short for the Association of Super Funds of Australia who release a standard on the quantity of earnings you might need to sustain a modest or comfy lifestyle in retired life. It ' s just provide you the idea that you know when when we ' re doing the economic preparation we ' re we ' re taking you ' re attempting to take the entire circumstance into account not just the not simply the super.Yeah wonderful. That ' s the tax saving.So that ' s that ' s the conserving you conserve on the tax obligation. Um as well as once again extremely if you ' re doing that for a a long time which people are in incredibly because it ' s you recognize it ' s a lengthy term investment.Not simply per very fund. I had a conference with a participant recently and she'' d wage sacrifice last fiscal year 25, 000 right into her Australian Catholic very fund however she was additionally getting her employer, superannuation, guarantee contributions into an additional incredibly fund. So please maintain that in mind. Um it'' s an actually crucial factor. And also the next slide we'' re discussing the opposite. So this is non-concessional payments and they'' re not concessionally taxed as well as that'' s why you can put even more of this right into extremely every year. This rate is a hundred 000 per annum. As well as the cash you use this generally originated from your savings account before it lands in your checking account you most probably would have currently paid tax on it based upon your revenue as well as those low tax rates outlines a number of slides back.Remember anywhere between 18%and also 45%. So payments under this type of arrangement or this cap simply remember you put on ' t pay any kind of tax obligation as it ' s going right into super since the concept is that you or someone has actually currently paid tax obligation on that cash prior to it can be found in. There'' s some really fascinating approaches that you can use with these kinds of payments but it'' s likewise essential to be familiar with the age based limits.And the restrictions for those complete very equilibriums over one 48 million bucks So we suggest you look into our contributions reality sheets for more details as well as definitely think about individual economic recommendations before making any big payments to extremely. Um back to you Phil. Oh fine so I suggest thanks Tanya. So you ' ve just covered off you know two of the significant'kinds of contributions. However I mean there ' s a you understand'the pair of various other you recognize I most definitely see as well. Um one is called scales down. The various other one'' s called the spouse contribution. Particularly the the downsizer payment has actually been one I presume it'' s you understand it ' s been around for a few years now yet still feels relatively current. Um so what the federal government did there was they stated that if you ' re over 65 based on a you know a variety of problems which'I won ' t go into every one of them tonite however the based on conditions such as you recognize having been your home for even more than 10 years.

You can potentially take 10 sorry ten thousand. Three 00 thousand. 3 hundred 000, dollars from the profits of scaling down. as well as placed it right into very as well as you understand search it'' s you understand doing that on a reasonably regular basis. I was mosting likely to ask that inquiry. Is it a preferred method for your clients? Well yeah I imply up until once more up until relatively just recently it was fairly hard for individuals over 65 to be able to place much money in into super. therefore you know when this came along and also you'' ve obtained to in fact be 65 in order to do this one. Uh so so yeah no it it'' s actually confirmed to be fairly quite fairly preferred. Um and additionally I need to state it'' s per person. So, if for a pair, it'' s$ 300, 000 each. It'' s a great deal of money. Uh yeah. Yeah. 'so yes. So, that ' s I believe that ' s been a really really'positive thing that ' s that ' s the government ' s done on on because sense.Um so, that ' s the downsizer. Um you can make partner contributions. Um so, what ' s the benefit doing that? Um you you may be able to save some tax by making a spouse contribution. Um so if it ' s not not of the order of what we ' re speaking about with the downsizer ' s contributions but and look those partner contributions undergo the non-concessional payment. Limits. Um however you can you can claim a tax rebate by making a well potentially I will certainly say case a tax obligation rebate by making a contribution to into your partner'' s extremely additionally and also for some people they they desire to do that since they want to I put on'' t recognize frequently in some cases they claim to me we desire to align the amount in each other'' s very by putting it right into the spouse as well as things like that. The consolidation that'' s not truly a payment. It ' s just kind of making the point that in some cases well what we do do see is that people are you know consolidating extremely accounts.

Um or merging them and they'' re doing that you know for a variety of factors. Um it might be for you understand to simplify their their affairs. as well as it also could be to attempt to minimize the quantity of fees by paying greater than one extremely fund costs. Um you have actually got ta be a bit careful with that said due to the fact that if you'' re mosting likely to settle funds you you require to ensure that you'' re not going to shed any advantages as well as points like I wear'' t recognize insurance coverage and things like that if you do that type of thing.But yet yes

it'' s yet simplification you know I'' m all for I ' m all for simplification. Uh frustrating Fantastic. Mm. Thanks. Thanks. This one simply speaks about couple of the manner ins which you can access your incredibly when you ' ve reached you recognize those preservation ages and also you ' ve satisfied those numerous problems of release. Phil have you obtained any comments about this? Uh of course so truly as the slide describes two main means. Swelling amount or earnings stream. So you can when you'' ve fulfilled a a conditional launch. When you'' ve obtained access to your super you can take cash out of it as a a swelling amount and also cash money it out.Um the various other means is to draw it as a regular earnings. I I think the most likely the factor we'' re attempting to make below is this. If you maintain your cash if you'if you ' ve been functioning'as well as you ' ve got your incredibly account'you ' ve been adding right into. You it doesn ' t just start immediately paying you an income stream. Yeah you can take lumber summons from it when you retire however it won ' t offer you an earnings stream. You need to become a pension plan product rollover is the word we we utilize. Um a revenue'stream. which ' s therefore you know and normally these sorts of income streams or account based pensions are the sort of products that we use in Australian Catholic Super.Um income

stream'' s popular for people that need routine income to fund their retired life Fantastic. Would certainly prior to we jump in much more into those income streams. What are a few of the I suppose an usual circumstances where people want to access a round figure from their extremely after retired life Oh. at some point sadly probably occasionally I wish to pay off some debt. Mm hmm. Um to ensure that'' s you understand that'' s that ' s that

' s among one of the reasons.Um but I suggest there ' s whole lots of factors. I imply they may be an additional an additional one is they wish to provide cash to youngsters. Um so that'' s rather a rather an usual usual one. Um aiding aiding children. Um may be may be you know taking place a journey or renovating your house. Um you know all those sorts of all those type of points. Or it can be that they they they'' re they ' re taking a lump sum because they intend to do have a few other of investment You recognize so you recognize, they may be wanting to invest in. I wear'' t know. Occasionally, they intend to buy a financial investment residential property or something, something like that. They'' re the major type of ones that I hear. Yep. Okay.

This this love is chatting a little bit about what you pointed out previously, how when you'' re in your working life, you ' re adding to super turn it around when you reach that old age as well as. Yeah. Yeah. Yeah. You start pension account and as you claimed, it doesn'' t just take place immediately. You actually have to take activity. That'' s. Documentation and also open up the accounts. Is that something that you do on a routine basis with your clients? Oh, yeah. Definitely. You know, this is this is, you understand, extremely, extremely, extremely, very usual. I type of may have leapt the gun right here a bit or he may have described that to this slide. No. yet but yep, I indicate, that'' s that ' s that that ' s right. It ' s you you have these 2 phases of super as well as lots of people are acquainted with the the one on the left-hand side due to the fact that you understand, that'' s they ' re not retired. Um yet at some factor, generally, people retire and relocate right into the into the pension plan phase and I think the interesting factor there probably is, in particularly in the pension, that, yes, with a pension plan, you can, you know, get a normal repayment, however you can also take lump sums.So, if you do require, you recognize, state, you understand, it'' s not unusual for someone that'' s in fact taking a pension that stated, I, I, I intend to purchase a new car, I, I require, you understand, I need some money to purchase a brand-new auto. So, you don ' t you can just take money out of your out of your pension plan in addition to the routine pension repayment. Quite adaptable. Yeah, that'' s. It ' s one of things that I I was aiding among my participants with this week, First Lady I'' ve satisfied face to deal with since lockdown and also she remains in this situation where she simply popped into the workplace due to the fact that she wanted to take a round figure from her pension plan account.Um to pay for

something. Yeah. As well as and it is a very typical circumstance. You you'' ve really got this one account that can function for a great deal of your requirements in retirement pay you normal revenue that'' s nearly there to change his wage that you'' re no much longer receiving yet additionally act I expect like a a bank account so to speak when you can take a lump amount. Um what you can'' t do which a great deal of people don ' t know is once you ' ve got a pension account

you in fact can'' t placed the money back into it.No. No. You can ' t include any type of money to an existing pension as well as so in some cases individuals keep a little extremely represent that reason. That ' s. Or perhaps they need to open a brand-new incredibly account'if they ' re you know to assume all points that are as a typical scenarios. Yeah. Yeah. Yeah. And also I guess we didn'' t sorry. I was going to say I wear'' t understand whether I highlighted the point that the super pays 15% that that last lines you understand the extremely wherever you remain in the very. Cuz remember nobody'' s mosting likely to nobody ' s due to the fact that mosting likely to automatically open your pension plan. So whatever your cash'' s in the extremely it ' s 15 %tax obligation on the incomes. Whereas transfer to the pension plan no tax obligation on the make That'' s right and also when you ' re taking a look at our various investment alternatives and just how they perform.So our investment performance page of our web site. If you ' re in precisely the exact same financial investment in very and you check out performance there it ' ll have a reduced return than specifically the very same financial investment in the pension account there that the same investments the very same funds. Mm. The distinction in between the returns is ones had tax deducted and the other one hasn ' t so that ' s. It should be an incentive to to really take action or at least think about taking action when you obtain to that factor. Mm. Where you understand you can access your incredibly. So have having a little a consider that as well as exactly how that might help you. Alright. Now we offer an alloted pension product. Um as well as you can attract on your very to money your retirement That ' s. rationale. Looking at the slide you can see the flow of money where you start by pressing funds into Super by getting and making contributions. Then when you ' ve retired or gotten to preservation age you can then begin pulling the funds out.So it ' s nearly like a a push and a pull if you ' re under the age of 60 Phil'mentioned this earlier. You must be aware as well as you should be prepared to be paying tax obligation on this pension revenue. There will certainly be a 15% tax counter. Once you ' ve got to age 60, the pension plan income will be received free of tax. So 60 is kind of the golden era where you can begin accessing your super free of tax. That ' s thinking you ' ve satisfied those other problems of release that'we talked around earlier which is basically a little a retired you ' ve discontinued unemployment setup. Um you ' ll also notice that the quantity you take out from your pension plan account goes through minimums as well as the minimums are based as a computation. Uh a portion of your account equilibrium identified by your age. That changes well it ' s just recently transformed with COVID as well as the monetary recession that came with COVID as well as additionally took place throughout the GFC as well where the the government even the federal government needs you to draw a minimum from these matters because they don ' t desire them to last for life because remember they ' re a tax obligation free financial investment so they ' re made to be drawn down during the'the time of your retirement So.They have introduced these minimums but during the GFC as well as throughout Covid they cut in half the

minimums and that ' s simply a short-term procedure. It ' s in fact exercised fairly well for a lot of individuals throughout Covid since they haven ' t required the revenue since they ' re not investing it on things like travel et ceter etcetera. So a lot of people have actually been rather delighted to decrease their draw down. Couple of key factors to note with this. There ' s no maximum. You can have a a tiny pension plan account equilibrium and also decide that you desire to take$10, 000 a month from it.And that ' s great. As long as you ' re not under a change to your retirement arrangement since

there is optimums. So you'can draw on a regular basis as high as you like but you ' ll quit receiving any type of payments the account equilibrium has actually deteriorated. So as long as you are keeping the minimum you can be adaptable with how much you take. And also you can transform that as well. So we have forms. We aid our members if they ah you know going with ah a patch as an example where expenses are fairly high. And after that requiring a little much more revenue than what they typically would obtain. After that you can change your routine pension payments and after that if you intend to alter it back as soon as you ' ve obtained with that patch.Um you can so those kind of plans. So our item is fairly flexible In that regard. There is one more interesting ah pension plan product that I I might ask

Phil to explain this one. Ah ah oh no this is oh sorry this is the normal one. I ' m jumping in advance of myself below. Retired Choice is our typical pension product. Sorry concerning that Phil. Yeah so Retired Options is the one that you do have a great deal of versatility. You ' ve obtained control over just how your financial investment decisions ah you recognize how you ' re invested. You as much as you Um you can choose your funds. You'can choose just how you make use of them however it ' s it ' s these this one ' s for me as well so as well as we provide 13 different financial investment choices for your money in the retired choice item and also you can pick the alternative that finest matches you and your cravings for financial investment risk and if you ' re wondering what am I talking about with cravings for investment risk well that ' s really where an economic planner can aid determine and it ' s things like are you a conservative anxious financier or are you the opposite at an end of the spectrum where you could be a really seasoned investor and also you ' re fairly comfy with the the changes of turns.So we ' ve obtained 13 alternatives that you'can choose one or a handful of them that are going to help you.

I constantly recommend that you look for financial guidance especially when you come into this phase of your life where you do desire to set yourself up for retired life. . feel this is the challenging one and also it ' s a really interesting product. It ' s called Retire Smart however it ' s certainly except every person. So feel if you want to such as'yeah so so so yeah just placing my little'slant on points we ' ve obtained 2 different pensions.Um we ' ve obtained retired option which Tanya was simply speaking about as well as we ' ve got retire wise. They ' re both account based pension plans.

Um they both just they both provide normal revenue in retirement They'. both free of tax investments. Um it ' s just that the one as Tanya just stated retired choice is it gives you the capacity to the financial investment for just how much return you ' re attempting to achieve. Just how much risk you ' re prepared to take. All right so retire smart is more I kind of try to possibly use the word like collection and fail to remember kind of'technique. As well as they ' re like they won ' t claim fail to remember but it ' s it ' s however it attempts to type of make it a simpler a a strategy for the for the participant. but it'' s not as tailored. So essentially the suggestion is that the fund is making decisions in your place concerning exactly how the money must be spent. So it ' s not really tailored for you.But the yet the the major the main way it works is is this. It it attempts to place some money I believe there ' s a can we just most likely to the next slide momentarily one? Yeah so you can see there this idea this oh we we like to call them buckets. There ' s 2 containers within the within this retire clever pension.One is money and one is growth properties. So the idea is you have your pension repayments since you recognize'you ' re mosting likely to require regular income in retirement You.

you have them drawn out of this cash bucket. however naturally I think lots of people understand you can ' t earn quite cash in cash money. So you wear ' t desire to have also much money there. However it is excellent to have some money there. It ' s normally a pair of years worth of the pension repayments go right into the'money back. as well as yet after that the bulk of your cash is purchased this development assets container. As well as so the fund is choosing that. That that growth pail. Um and also as well as so the idea is the mass of your cash is type of invested for the long-term. Due to the fact that you need the development to assist money your retirement Um and as well as the cash money pail ' s helping pay your pension repayments. And naturally what after that ' s occurring exists is money moving back as well as forth between the'the development pail as well as the cash money bucket.The main most likely the major reason being is undoubtedly if you ' ve got a cash money pail and you ' re drawing down on it, it ' s going to go out

of cash. It needs to be topped up however it ' s all automated. ', that ' s you know, that and that ' s kind of like the beauty of it. You understand, from the members factor, the funds doing it all for'you. Well, that'' s automated. Yes, I assume so. Yeah. Yeah. You ' re not getting you ' re not obtaining a a a a product which is going to give you'a financial investment which is'customized for for you which is what the retired choice does Okay. That ' s interesting. Yes. Okay. Thanks. This is an actually warm topic. Frequently we fail to remember to believe concerning this durability. You recognize my grandma lived till she was ninety-four. And I ' m going for a hundred. Just how does this impact points really feel when we ' re aiding our our

participants prepare for their retirement Yeah? my granddaughter stayed in 94 as well yet I ' m not going for a hundred. Ah so Um so yeah. Well, I think we ' re simply type of changing tack a little bit yet we ' re on the topic of pension plans and also exactly how lengthy your money should last. You know, well, you understand, how long does your pension plan have to last? That type of thing. Um so, you recognize, I believe what what this slide is truly simply doing is is elevating several of the problems that we reviews monetary organizers. Um when can I retire? When can I manage to retire? Longevity, you know, we ' re living longer. That that ' s you recognize, that ' s just what we ' re getting at. We ' re living much longer as well as longer. Um therefore', we required money to be able to last longer. It increases'all these crucial concerns like we ' ve just been chatting concerning and you know what sort of returns am I going to obtain on my on my investments.Um when can I retire? Just how much cash do I need? Do I have'sufficient? All these points are all relevant to you know how much time you want your money to last. As financial in this job as financial coordinator you understand we we ' re generally you recognize having discussions with people regarding you understand family members background simply like you were showing us. Tanya you you require to fund at the very least to 100 by the noise of it. Um no So'you recognize So, so you understand that ' s that ' s that ' s the sort of discussion we would be having around that. Well, that ' s your objective. So, let ' s see what allow ' s see what can be achieved there and also what you require'to do and also you know, just how much money do you require as well as all those type of things.Um that point there about the Covid I remember that that you know, however for everybody, I think the the subject of Covid started showing up in our workshops when Covid started and the marketplace had actually dropped.

Fairly substant and you understand, you recognize, every person was, you know, normally extremely worried about the influence of Covid on their retired life financial savings. Um and also certainly, what has, you understand, generally took place is that yeah, the the the market did fall.With Covid however it ' s in fact it ' s really recuperated therefore, you know, look, once again, I haven ' t got a clairvoyance.

That ' s I assume that ' s been an actually actually'positive thing that ' s that ' s the government ' s done on on in that sense.Um so, that ' s the downsizer. Um but yet yeah, I suggest, that'' s that ' s that that ' s. Really feel if you want to like'yeah so so so yeah simply putting my little'angle on points we ' ve got 2 different pensions.Um we ' ve got retired selection which Tanya was simply chatting about and we ' ve got retire smart. And they ' re like they won ' t state fail to remember yet it ' s it ' s but it attempts to kind of make it a simpler a a strategy for the for the member. Um as well as of course, what has, you understand, normally occurred is that yeah, the the the market did fall.With Covid however it ' s really it ' s really recouped and so, you know, look, as soon as again, I haven ' t got a crystal round.Yeah I I'' ll simply go through it swiftly due to the fact that there'' s a great deal of'numbers but I indicate you'' ve you ' ve you ' ve you ' ve just explained sort of some of the the broad the broad concepts regarding the you understand the the methods implies screening and this is simply type of placing some numbers on it.Um and also one of the points you can most likely select up from the slide is that Centrelink differentiate between a a home owner and also a non-homeowner. That ' s that ' s that ride and you I indicate I'think I I'wear ' t believe we ' ve stated it however for those that don ' t recognize Sentling when we ' re chatting concerning these asset worths they ' re not counting a home. Um it typically comes up anyway as part, you know, when we ' re discussing, you recognize, people ' s strategies and also things like that as well as it may, you understand, fairly typically, it ' s not always the like like you were chatting about.It ' s not necessarily the the customers themselves that we ' re we ' re speaking around.

I think that'' s what I'' m that ' s what I ' m trying to say. Yeah I I'' ll simply go with it promptly since there'' s a lot of'numbers but I suggest you'' ve you ' ve you ' ve you ' ve simply described type of some of the the broad the broad concepts regarding the you recognize the the methods means screening as well as this is simply type of placing some numbers on it.Um and one of the points you can most likely pick up from the slide is that Centrelink differentiate between a a homeowner and also a non-homeowner. That ' s that ' s that ride and also you I imply I'assume I I'put on ' t believe we ' ve stated it yet for those who don ' t know Sentling when we ' re chatting regarding these possession worths they ' re not counting a residence. Um it usually comes up anyway as component, you know, when we ' re discussing, you understand, individuals ' s plans and also things like that as well as it may, you understand, rather often, it ' s not always the like like you were talking about.It ' s not always the the customers themselves that we ' re we ' re speaking about. Yeah, I believe that it ' s it ' s difficult to put a rate on the value of peace of authorized isn ' t it?Those over the phone advisers can aid our participants with contribution suggestions with how to invest your funds as well as as well as a pair of other subjects as well as this over the phone advice comes of no extra charge. It'' s really spent for currently out of your participant fee. It'' s one of those solutions that is component of your member charge that a whole lot of our members put on'' t take off. We couldn ' t encourage him more to do that. And also there'' s no restriction as to the amount of consultations you have over the phone. Certainly you understand we need to be sensible and also make way for other individuals yet there'' s absolutely nothing stopping you from having a having it when a year.And then it comes with a comprehensive recommendations which is fills up area and he collaborates with a team of other detailed advisers. We we have the ability to seek their recommendations one-on-one. Um has been tough throughout Covid however that ' s all starting to come out as well as we also enable our participants to have conferences by Zoom. And if you comfortable with that and you ' re pleased to do that over the phone well you'absolutely can. Just a suggestion that thorough guidance does come at a cost. The initial meeting is free of charge. It is an assessment where you can deal with your monetary organizer to speak about the topics that you ' d like guidance on and afterwards at the end of the conference'your organizer can give you with a quote. Anything you ' d like to include with that one Phil? Uh no I think that ' s that ' s that that'' s that ' s around right. Um the initial first free as you claimed and after that we'' ll quote a rate ah and ah you understand appearance we ' re a member service.So, we ' re

we'' re right here to here to help people. Simply a fast question, The procedure, if you could just give me a quick rundown on the process of extensive advice since I think a great deal of our members who haven'' t experienced detailed guidance prior to may not understand that that takes a little of time. Can you give provide us an idea of just how that works? Oh, fine. So, well we we you recognize we primarily have a a preliminary meeting and in order to make that bed conference as effective for you as as possible. we ask if you can do a little bit of homework, I think. Um so, you understand, we we we need to essentially be able to understand your financial scenario. Um it makes it it'' s you have a a lot more productive and also better meeting I would certainly say with the monetary coordinator if you are prepared. Um it you understand if you if you telephone as much as the Financial Planner you you you may get your cost-free meeting.But if you ' re

not prepared that the financial what you ' re going to find is the financial strategy is going to wish to know a great deal of points. Because if you'' re going to ask them what you what you think they should do you require to know. Um therefore you recognize we'' ve obtained a a a pro we you understand we we email bent on the customers generally the details that we we want to have back before the meeting. and that offers us once more that provides the monetary plan a time to prepare for the conference. Um so you know we do that. we try to get try to do obtain that type of research in preparation before the conference. We have the meeting. Discover the objectives as well as what'' s going on in a person ' s lives. Right stuff in the conference. offer a quote. Um if we see if we both concur that we we can supply some benefit to you.Um as well as if you'' re happy with that said then we will certainly compose you a report called a statement advice. Um it usually takes approximately a month to to prepare. And after that we will certainly provide it to you. Um go with it with you. Make sure you'' re happy and understand it. As well as do the vast bulk of all the documents which is the truly horrible part while doing so that we yeah. Yeah. Okay. Okay. As well as I I intend the factor that I was attempting to make there was that if if it is something you'' re curious about most definitely begin speaking to your local supervisor or talking to somebody on the helpline because basic guidance first. Um before you relocate onto the detailed. However as soon as you'' re at the detailed just bear in mind it will take a bit of time.So if you

desire economic suggestions for your retired life it please wear'' t leave it to the last min. Please contact us you recognize at the very least a couple of months out. And then it just makes the entire process a lot less difficult and you can appreciate the process which you can be really delightful and also and actually enlightening for a great deal of people. Okay I actually intended to take this chance towards the end of the discussion. If you'' re still with us to chat concerning some brand-new new legislation and also exactly how it'' s influenced our fund. Currently we'' re off the subject of retired life preparations if you need to slope. Um I completely recognize. But this has actually been something that'' s been rather topical. So the federal government presented legislation called Your Future Your Super and also the entire suggestion behind your future your super was to evaluate the superannuation industry to assess incredibly funds as well as to mention as well as as well as to produce a little much more structure that would certainly aid the typical Australian extremely participant get a a better advantage out of Supra as well as there'' s a number of little bits and also items around this however I'' m going to chat specifically regarding the efficiency test.Now the efficiency examination was initially introduced in the Federal Budget as well as it was revealed in October 2020, which is simply over a year ago and also there were 9 months of extreme lobbying between government, market bodies and funds regarding the sensible application of the examination and also exactly how it would operate. And after that it was in fact enforced laws. So it was it was truly just a suggestion up until it was enacted. Actually well created idea. It came into impact June 2021 and also it began the following month in July 2021, which is just a few months earlier. The regulations which include the specifics of how the examination would certainly run were launched in very early August twenty twenty-1 And the results of the efficiency were released on the 30th of August 2021 and also our fund was informed on that date that our my incredibly default financial investment choice did not pass the test and so the my incredibly default investment alternative is the investment that you have actually placed into if you don'' t choose your very own investment.So it ' s an option that we ' ve developed for that member that would favor not to make their very own financial investment option or maybe didn ' t recognize that they could make their own investment selection. And also according to Afra that is regulatory authority. They claimed that we did not pass the test. How it functions is the test looks at the previous seven years efficiency of the My Super Alternative and also compares it to a fixed benchmark.So it ' s not contrasting our super fund to other very funds.

It ' s contrasting our extremely choice to what the government believed was an ideal benchmark or assumes is a suitable bench standard. So our existing default investment choice is called lifetime one and also it hasn ' t been around for 7 years therefore what the federal government have actually done is they'' ve included on the previous default investment choice which is called Traditional Equilibrium and they ' ve placed the two with each other to establish our efficiency outcomes. So the mix of the 2 items did not pass this mandated test. Um so this year the test just associates with the MySupra investment option. It doesn ' t influence members invested in our other thirteen options that we have readily available. So we we covered off on those 13 alternatives prior to when we were speaking about the assigned pension.So you do have selection if you wish to transfer your funds to among the other choices.

Um today so we don ' t really know all we understand is we didn ' t pass the examination. We wear'' t recognize by just how much so we we haven ' t been notified of our specific setting to the standard. This slide sums up the factors why we didn ' t fulfill the benchmark. It ' s interesting to keep in mind that the basic wisdom is that past performance is an indication of future efficiency. This test is inde looking back in the past.Well couple of the reasons that we ' ve been able to recognize that we believe it caused us to not pass the test is our

shares portion of our portfolio didn ' t do as well as a legal standard. And also in the monetary year as well as in 2thousand 18 we restructured our shares, profile to with the purpose for it to execute at a greater rate at a far better price. And one more one is is quite a technological component of the efficiency examination is our options investment profile was classified by the regulator as holding more growth possessions than our portfolio actually held.So our profile was more conventional and also because of this we didn ' t attain as greater return as what criteria we were examined against.

We ' ve formerly recognized efficiency six to 7 years earlier and also ever since performance has actually been fairly strong as you can see on the next number of slides. Specifically in the last 12 months and because we ' ve presented the lifetime one on alternative. There ' ve been several different explanations and also perspectives concerning efficiency examinations. It ' s simply the very first year that the efficiency examination has actually remained in place. A whole lot of extremely funds are now now that they ' re knowledgeable about how the performance examination functions'. Rather a few funds have actually transformed their financial investment purposes to align with the performance examination. There ' s fairly a great deal of detail. It is quite challenging and there is a committed area on our website.If you ' d like a bit extra information The Australian Federal government have actually additionally produced a comparison device where you can have a look to see how various my extremely default alternatives have violated the efficiency examination and also we we encourage people to go and also look at that. Tool which gets on the ATO web site. Our existing default option, Life time One is satisfying its designated objectives. It ' s only been around for three years. So, simply remember the performance test looks back at the last seven, not simply the last 3. Although we have actually been fulfilling our intended objective, it ' s crucial to not be confused with satisfying the efficiency examination. As Apra have an entirely various collection of benchmarks. The financial investment performance with Life time One has actually been quite as well as you can see on that particular slide it'states that for participants up to the age of 40 years old it ' s gained 20 9% after costs and also tax obligations for the last fiscal year. As well as this slide we can see the returns of our lifetime one product over the last economic year as well as an average over 3 economic years because it was introduced. If you ' re asking yourself why there ' s a different returns and also different age brackets on there. This is the style of the product. It ' s developed to end up being a lot more traditional as the participant ages as well as with an extra conventional financial investment, you'have a reduced threat as well as in turn, a lower return. Considering the previous year, you can see some great investment return numbers there and also if you desire to balance it out, we can provide you 3 years which is the average because Life time won our current default has actually been around.So the expectation for the enjoyable well we we truly do remain to have your finest rate of interest at the centre of everything we do. We offer award winning insurance policy within the fund as well as we provide that personal solution that we understand that our members really appreciate. We ' ve recently lowered our charges

which aids to improve your investment returns as well as we ' re always functioning hard to reveal new methods to support our members.One of the crucial things on our program is to discover the biggest extremely fund to combine with. The federal government are motivating us to do this and they assume it will certainly remain in members ideal passion to become a larger fund. And also the reason behind this is the advantages of merging with the huge fund is to offer economic situations of scale. So economic climates of scale is really simply chatting concerning how the more you have to spend the less costly the fees can be. This might additionally assist to minimize prices that we can pass onto members. If you ' d like to go over the performance testing a lot more detail, please enter call with your regional supervisor or with our head workplace or our financial recommendations team can also aid with picking an alternative investment choice within Australian Catholic Super. If you ' re in Life time One as well as you ' re curious about making a move.We ' ve additionally got the participant portal. So this is just completing a number of various other solutions that we provide. The member portal it ' s similar to electronic banking. It ' s truly simple to register if you place ' t currently. You can track your account. Here ' s a summary of what ' s in the website. You can negotiate on the account. You can'alter your investment choices. You can discover the VPay details.The production of contribution. There ' s a terrific forecast device if you want to determine what your very balance could resemble in the future. And we ' ve just recently likewise reestablished our app if you like to do things on your mobile phone. So really please wear ' t think twice to obtain in touch. We truly like helping our participants. We desire to speak with you. You can call us. You can email us. And also now we ' re arising from lockdown.You can see us in the regional office. We ' ve got two offices in Sydney. One in Brisbane, One in Canberra. One in Townsville. One in Port Macquarie. And one in Perth. And after this session you ' ll get a survey where you can elect to have one of your local supervisors'contact you over the next few days if you like. Are you in the interest of time? I believe it ' s possibly best that we wrap up now with made note of of your concerns as well as solutions.

I can see that there ' s a couple of comments in the chat box. We will certainly obtain back to you regarding those. Really just intend to give thanks to everyone. Phil in order to wrap up please tell us when do you think people should begin preparing for retirement? Now, yeah, I I assume if you ' re pondering it, I assume it ' s begin having a conversation a minimum of you understand, with your local manager or or or'the financial preparation team.At the very least have a conversation as well as and begin to see whether currently is the moment because you put on ' t intend to leave it too late. It ' s much better to have the conversation previously. than than to leave points to you. You may be limiting your choices if you leave it to like. Fantastic. Thank you a lot. Thank you everybody for sharing us your time tonight as well as ideally, we can obtain together in the future and see each other in person. Thanks. Excellent evening. Thank you. Excellent evening.

Uh no I assume that ' s that ' s that that'' s that ' s about. The guidelines which include the specifics of how the test would certainly run were launched in early August twenty twenty-1 As well as the outcomes of the performance were released on the 30th of August 2021 and our fund was informed on that date that our my very default financial investment option did not pass the test as well as so the my super default investment option is the financial investment that you have actually placed into if you put on'' t select your very own investment.So it ' s a choice that we ' ve built for that member who would certainly choose not to make their very own investment choice or perhaps didn ' t understand that they might make their very own investment choice. We don'' t know by how much so we we sanctuary ' t been alerted of our exact setting to the standard. If you ' re asking yourself why there ' s a various returns as well as different age braces on there. If you ' re in Life time One and also you ' re interested in making a move.We ' ve also got the member website.

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Retirement Planning Webinar – 12 July 2021 Australian Catholic Superannuation

I'' ll just wait for a min and after that obtains stuck. Alright. Good evening, everybody. My name is John Cheney. I'' m the local manager for Western Australia and uh this evening, I'' m joined by Jolene Stockwell who is our monetary organizer in the Perth office So, welcome everyone As you might be aware, we weren'' t mosting likely to hold this as one-on-one conferences today as well as Wednesday due to the fact that of the lockdown a number of weeks ago and also as it is the extreme weather warnings This week, we have chosen to um to make these available as webinars. I do thank you for uh altering your plans and also I wish that you get the complete advantage out of this um out of this webinar this evening. So, we'' ve called it the retirement preparation. What you need to know to plan for your future the webinar we expect to compete about an hour.Um I can not offer you a precise timespan however uh basically a hr and afterwards we likewise have the capacity to to take concerns this evening If if the inquiry is not answered. Uh this night, we will absolutely obtain somebody to to get back to you in the next couple of days and uh and also take it from there. Without further ado, I will certainly proceed on if I can. Jolene, can you Thanks. Initially of all, uh we'' ll do a welcome to country. I would love to recognize the standard custodians of the land on which I work and also live as well as acknowledge their proceeding connections to land, water, as well as community I pay regard to elders, past, existing, as well as emerging So, if you have participated in one of these, webinars or seminars in the past, this display will be rather familiar to you. It is our please note and essentially, it'' s informing you that anything that we state tonight is of a general nature and does not think about your individual, monetary circumstance.

. One of my coworkers mentioned um recently, if you can read everything on this page, you'' re not ready for retirement however essentially, uh by by disclaimer, this uh web page, this will certainly obtain uh Jolene and also myself off the hook without risk and compliance group. Thank you for that one. some interesting information as you may well be conscious, Australian Catholic extremely is readied to merge with another fund non-government institution super which is down uh today referred to as NGS Super and we'' re at the stage of due persistance which can take some time and also we'' re really hoping that um very early in the New Year, the 2 funds will collaborate which will certainly an excellent result for the Catholic community in the sense that uh both funds share the very same worths as well as we we uh we share a great deal of typical uh goals and also values as I discussed as well as if the the uh the merge entity pertains to fulfillment, we will have more than 200 thousand participants in the funds as well as over twenty 1.

billion dollars as funds under monitoring. So, that would certainly be a fantastic outcome for for both funds in regards to providing uh sustainability in the future and proceeding the job that we have corrected for over 30 years. Um as in our corresponding funds. So, there is even more information on our website if you most likely to Catholicsuper.com.AU slash Merging and also over the coming as well as months, we will certainly send you more info as it concerns hand however we'' re all extremely fired up about this merger and also um simply waiting on the green light to ahead up for us to proceed with that. Thank you for that. retired life planning as well as establishing objectives for our retired life. Each and also every one of you In this webinar, I'' m sure has various suggestions, various goals in terms of what'' s you ' re looking for in your retirement on this listing, you can see a few points which currently are probably not uh available to individuals Just recently retired.So, for instance, I'' m not sure that lots of people would intend to hop on a cruise ship presently and sadly, not several people can take a trip far from where they live. Obviously, we hope that that will alter in in the future yet that'' s completely out of our hands as well as II do want to send my finest dreams to to anybody who'' s in New South Wales this night as well as as well as on this webinar. um we are all reasoning of you as well as wish that points enhance uh very soon. There'' s a great deal of things there which we can look ahead to and I'' ll now hand over to Jolene that will tell us just how much we need to have for for our retired life. Thank you. Excellent night everybody. Uh thank you for joining us. Um particularly if you'' re personally borders since it'' s the 2nd wave of the storm seems rolling through.So, thanks for

joining us Currently, these standards are this evening with the retirement workshop. we are mosting likely to discuss some things around the age pension plan but we do have age pension plan and also chink certain seminars as well as webinars throughout the year as well. So, if you ' re searching for a much more in depth view on those areas, please'take place to our website on a semi normal basis to look into those as they come up with these lifestyles. everyone that I talk to regarding them is how a lot do I need? And also the inquiry is, well, what do you do? Going back to what I was stating about retirement being different for everybody. This is a guide blog post to assist you see where you sit. So, obviously, if you ' re only on the age pension plan, then, points are going to be a little bit tight, modest. You ' ve got a bit more adaptability and comfy is precisely that but Take a look at that and also see where you sit. It ' s worth recognizing a little bit much more regarding what ' s below those information, alright? If you ' re on the age pension, you may be looking at'actually brief day journeys, you'' ll be selecting and choosing which actually set you back reliable ways you'can consume out regional clubs, affordable takeaways, and it won ' t be a regular thing when the show comes to you, when your license comes due, it will certainly be a wee little bit tight.This is the finest means of placing it. After that, you go up to a small retired life and points obtain a little bit extra flexible. The most effective means of thinking of this is that if things break down, after that, yes, you can manage to fix them. You may not be able to pay for to change them So, that might indicate a little bit extra making. do or conserving up a little much longer whereas, when you ' re because area, after that, you ' ve obtained the versatility to take care of points as they emerge. You ' ve got your private health. You can remain to be quite social as well as'go out I had a really good concern today. In fact, someone said to me, oh, alright so it consists of an annual holiday. Are we speaking Bali or are we Talking.dot Dot? I said, well, That ' s where every person ' s individual circumstance comes in. one annual holiday in Australia. A person might state, well, you recognize what? I can take 2 vacations if I go somewhat more affordable and also someone else may claim, well, in fact, that ' s not rather enough due to the fact that I ' ve obtained family members that live further a field.So, I ' ve obtained to take a trip a'lot even more So, that offers you a little bit of a summary of what do those way of livings

imply.'Simply going back to the numbers briefly comfy for a single. You need 4460 and also a fifty percent for a couple Modest is around twenty-eight for a couple. It ' s just shy of 41 and after that you have the complete pension plan. So, when you ' re taking a look at well, where do'I get that from Then, you ' re looking at points entirely So', with that, If you ' re checking out whatever that you have, you may have your incredibly, you'could have your residence shares, money home, and after that you ' re encountered with the inquiry. If you do have a few of those points, which ones are you mosting likely to use, you know, for some people, they might have a family building that has a substantial amount of nostalgic worth. so, they intend to keep hold of it for as long as possible. For other individuals, it could be a wonderful to have but they'' re quite pleased to, you know, liquidate their rental when and if their retired life needs. Okay. So, the most vital point there is whatever you have, how can you develop it up to make sure that it'' s sufficient Okay.Thank you, Jolene. I

ought to state that we do have AQ and a center on on this webinar. If you have any type of inquiries, please go on to that facility and upload your concern to us and as I mentioned, we we uh we ' ll do our really best to'address them this evening. Um so, just in uh our well-regarded coworker in Sydney is in control of that feature and also at the end of session. Justin will um will locate the concerns at us as well as I'' m really hoping that we'' ll have the ability to um to aid you with that said. also at the end of the session, uh you uh Justin will certainly advise you that there'' ll be an Email thanking you for attending and uh there will be a study, a brief study for you to fill out which you hope you'' ll you will certainly do as well as send back to us. Continuing with super as well as so why why do we have incredibly and as well as what are the benefits of having it tax obligation comes Straight to mind. So, if so, when your company is contributing to extremely Not only is the tax the contributions tax obligation on that employer contribution set at 15% yet likewise the profits in your very is evaluated a maximum of 15% If you contrast that with various other financial investments outside the incredibly, you can see that there'' s rather a difference and uh super annuity ends up being really tax effective.

if we carry on to change to retirement. Sorry, Darlene. Um transition to retirement pension plans. The tax obligation is the same. 15% on any kind of profits however after that it becomes extra fascinating and even much more eye-catching if you go to an account-based pension since at that stage, the tax obligation on any on any kind of earnings is absolutely no When once again, if you compare that with any other investment out there, that is an incredibly amazing and also attractive proposition Thank you. Alright. So, when can you actually access your super and what are the tax obligation effects on those? So, presently, if somebody is age fifty-eight, they can in fact tell their employer that they intend to retire and also have access to their super Currently, this is just a little window because any person who'' s born after First of July.1964. the age that individuals can begin to access their super will certainly raise the age of sixty. As I discussed that there are a variety of people that might remain in that 5859 age braces who are taking into consideration retiring as well as in reality, they they can do that They should take into consideration that there there could can be some tax ramifications because age sixty is the the gold age in terms of taxation. tourist attractions, Um so simply know that if you are under age sixty as well as thinking about retiring, that'' s um they can be a percentage of tax obligation to pay. From age sixty points come to be extra interesting as well as Not just can you access super via what'' s known as transition to retired life account which Jolene will certainly talk regarding in even more detail. um soon um but also if you do retire, you have access to either a swelling sum in or converting some or every one of your super into an alloted pension plan as well as uh as I claimed Jolene, we will discuss that and also um go right into more detail and after that from age Sixty-five, things really do become a lot more eye-catching as well as versatile in terms of what you can um accessibility basically from age Sixty-five whether you'' re functioning or not, you can have full access to your very and also as we saw in the previous slide, the the assaults on um on the earnings.If it ' s in an account by'pension is no as well as if you take it as a round figure, there is no uh PAYG tax obligation to pay on that round figure. So, those are the three age braces which um which currently impacts us So, if we return an action, consider exactly how do we money our retired life? if you ' re still functioning. there, there will be a variety of manner ins which that contributions are being included to your account and also one means which which you can include in your very if you ' re working is through what ' s referred to as wage sacrifice or pre tax'payments Now, remembering that the tax obligation on any type of payments that they made as an income sacrifice payment is set fifteen. 15 %. We can see from this table below. that if you gain more than 18200,$18201, your low tax rate is 19 %. If you are salary sacrificing any of your hard earned cash into incredibly, you are, you ' re currently making an a tax obligation you already have a tax obligation benefit.Um as people have Um higher wages. the the destination and also the benefit enhances a great deal much more based on their minimal tax price.

That that is why wage sacrifice might be of interest to some individuals as well as right here we have an instance of how that functions. So, returning to my previous comment, that income sacrifice contributions are exhausted at 15 %If we look at the middle column, Where this certain person is not making any type of added contributions. The gross income and also this is for an individual who ' s earning 100 thousand$ 100000, the gross income is um 3800 3846$3846. If that exact same person was to take into consideration making salary sacrifice contributions of $192, per Fortnite which works out to be 5%of their wage, The taxable revenue minimizes to 3600 3653 $3653 as well as then you can see the effect that carries take house pay If that individual is not making any extra payments, take residence pay is 2008 2884$2884 compared to take residence pay of 2750$ 2757. If that person is Those certain wage sacrifice payments. So, You can see that there exist are two benefits there. One including added cash to your incredibly and the second with the taxation benefits, What are the restrictions to these contributions that you can make? So, regrettably, extremely innovation has a great deal of

jargon in it and also um our work is to try and also make that simple for you. First of all, I ' m going to talk regarding concession payments and their limits. So, giving in contributions include any company payments which can be wage. incredibly warranty payments, and wage sacrifice payments which I just mentioned your company may or might not be paying extra employer payments and also the last one there is an individual insurance deductible contribution which is something uh relatively recent in Super Annuity and also we ' ll speak about that a little bit a lot more um brief So, up until the thirtieth of June this year, the giving in payment cap was $25000 This has currently changed from the initial of July to 27 27005$27500 for the next year. And as I said formerly, the payments tax for the for that cash is 15 %. Now, a fascinating growth with giving in contributions. So, if you could just go back Jolly is that for the last number of years, you can really capture up on any type of unused giving in or contributions which you may not have made Simple example.If someone had actually made concession, contributions of 2020,$1000 last year, they can currently place in greater than the 27 thousand. 27500 for this specific economic year as well as to capture up um which might have been um a lot more of a quantities that that they had not added the previous

Economic year. So, an excellent way to examine this is to take place to the my Gov internet site because that will certainly inform you what your deductible or your concession contributions have been as well as um if you require more recommendations then, then we can aid you with that said but the um as I said, the confessional contribution limitations have increased for this year as well as I should additionally mention that company. limitation or contribution has gone from 9 and a half percent to 10%from the first of July.So, that might additionally require some further modifications in your reasoning as to just how much you can place in for this economic year. So, that was concession payments. I ' m currently mosting likely to state we ' ll speak about non confessional payments. in English is truly after tax obligation contributions or personal contributions. So, the restrictions for this have also increased from the initial of July from$ 100000 to 110 110 thousand$ 110000 for for the financial year. So, if you ' re under the age of 67, Not just can you make that, if you have this type of cash offered, uh not just can you do that for 1 year however additionally for a 3 year time period.So, basically, what that implies is that if you ' re eligible you might effectively contribute 330 330 thousand$330000 of after tax obligation payments for this economic year and also not make anymore after tax obligation contributions'for the following 2 years. where it becomes intriguing remains in that middle brace. um between the ages of 67 as well as 74. the formerly you needed to satisfy what ' s recognized as a work test which means that you'would have to show if asked that you had functioned 40 hours in a 1 month period in because particular monetary year recognize that that has actually now changed. while doing so, John. So, while doing so. Yeah, it ' s it ' s been proposed with a spending plan to start from 1, July 2022. We are still kind of waiting on it being settled but it does look very, very likely excellent. Okay. That ' s um that may be of some interest to to some of our participants and also if you um some monetary guidance on that, after that, we ' re more than happy to to aid with that and also after that regrettably, from age 75 as well as over no more payments are enabled into super Those are the the limits as well as the age brackets.I will additionally um really briefly speak concerning various other ways which you can add to incredibly downsize'the contributions Now, this was presented a couple of years ago and primarily, it indicates that if you, well, prior to um um thirtieth of June this year. If you ' re age 65 and also over addition to the non giving in restrictions which I revealed you on the previous slide. One of the modifications in the spending plan is that that age limitation of 65 is being altered has actually been minimized to age sixty So, that might likewise be of some passion to some members and if you need a more suggestions on that, we we can assist partner payments. This has been around for for a long time and also the way it functions is that if spouse is gaining even more than the other partner. a payment could be made right into the various other spouses. super an account and the method it functions is that if a contribution of claim$ 3000 was paid into the various other person ' s account, the contributor would certainly get a tax balanced out of 540$ 540 in in their tax obligation return. For some individuals that might be eye-catching as well and also the 3rd one is a loan consolidation you.

The majority of us are now aware that if you have more than one extremely, an account, you ' re paying fees on on each of those accounts as well as um it it may remain in your benefit to think about bringing those uh several accounts all into one account and uh not only does it keep them, is it simpler for you to watch on'on what you have however as I claimed, it additionally reduces the amount of charges that you ' re paying.So, so are a few of the ways that you can contribute right into your account. and I obtain the more fun section I get to speak about how to access your extremely and also what you can do with it. So, I ' m mosting likely to start with round figure and also I ' m going to begin with retirement problems of launch but then, we ' re mosting likely to pay a little bit much more interest to the earnings side of points as well as just how that can function. You ' re permitted to gain access to lump amounts from your super Once you ' ve met a condition of release. ', I ' m going

to function backwards age Sixty-five. This is magic. because it doesn ' t issue if you ' re working a little bit or a whole lot or if you ' ve been with the very same company for twenty years, of you being with a company for 20 minutes.If you are 65, you have full accessibility to your very between sixty and 64, you need to take a few various boxes. Number one, you can retire if you ' ve got the money, you put on ' t desire to work anymore retire. you'put on ' t mean to function 10 or more hours a week, you ' re retired obtained complete gain access to in between sixty as well as 64. If'you'alter companies, any kind of super annuity that you'have collected as well as accumulated as much as that factor, you have access to If you ' re one of the people that have accessibility to your very at age 58, as well as 59, then you can access it with full retirement. So, that is you do not intend to work 10 or more hrs a week The only sting in the tail for any person accessing it fifty to fifty-nine is that there are more possible tax obligation effects Any kind of withdrawal is free of tax. Okay? We see a great deal even more people looking at their very annuity and accessing as well as looking at pension plans from age sixty when those repayments are tax obligation cost-free. So, we ' ve just covering off the super annuity accounts and also taking a look at just how you can build it up. After that, when you ' ve got access to several of it. Now, if you ' re still working and also you ' ve not clicked among those boxes that I pointed out for full gain access to but you may still have the ability to access up to 10%through a change to retired life pension plan, alright? We ' ll have a look at that as well however

some some factors why people may desire to gain access to it is to enhance what they place in. If you ' re looking at the list of all those means that you can place in extra, you recognize, some individuals truly want to take benefit of the tax obligation savings by income sacrificing as much as they can up to all those caps that John mentioned however possibly they can ' t pay for to maybe they ' ve obtained home mortgage dedications and other commitments that they need a certain quantity of cash money circulation. A change to retirement is where you ' re putting in to your extremely however you ' re taking out from your extremely at the exact same time.

I ' m currently going to discuss we ' ll talk regarding non confessional contributions. Yeah, it ' s it ' s been proposed with a budget to start from 1, July 2022. I ' m going to start with swelling sums and I ' m going to start with retired life conditions of release yet after that, we ' re going to pay a bit extra attention to the earnings side of things as well as exactly how that can function. You ' re permitted to access lump amounts from your incredibly Once you ' ve fulfilled a condition of launch. If you ' re looking at the listing of all those methods that you can place in added, you understand, some people truly want to take advantage of the tax savings by wage sacrificing as a lot as they can up to all those caps that John stated but possibly they can ' t afford to maybe they ' ve obtained home loan dedications and various other commitments that they need a certain amount of cash money circulation.It ' s like anything begin Ni away and having a read of it so that by the time you require to consider other people or on your own with it, you ' re a little bit a lot more acquainted with some of the terms and also get to out as well as please ask for assistance because that ' s what we ' re below for. It ' s regarding helping you comprehend that you understand what if you ' re utilizing up your cash money, if you ' re making use of up your very, after that this the end result that you ' re going to have. If you ' re in that certain space or age bracket as well as you ' re you ' re looking for recommendations or info, I must claim you in the webinar, then we ' re able to produce that and uh Jolene additionally stated regarding the age treatment um offerings as well as there ' s a great deal of which which we are able to offer you and they um those webinars have actually now come to be very very popular.

Currently, these are figures as of March, they have indexed up somewhat so they are a little higher due to the 1 July index as well.Okay And a pair this is especially helpful if you have one individual of the couple still working in retirement doesn ' t imply the individual that ' s age pension plan age immediately doesn ' t get it. It ' s like anything begin Ni away as well as having a read of it so that by the time you need to consider other people or yourself with it, you ' re a little bit extra acquainted with some of the terms and also reach out as well as please ask for aid since that ' s what we ' re right here for. It ' s regarding aiding you recognize that you know what if you ' re utilizing up your money, if you ' re using up your incredibly, after that this the end result that you ' re going to have. Jolene and also yourself would certainly sit down as well as go via your budget which we ask from you before the appointment and after that based on the discussion uh Jolene would be able to function out if there ' s any kind of areas which which she can offer advice for you as well as if there ' s no areas or absolutely nothing which um which requires attention.Then that ' s the end of the discussion. If you ' re in that certain room or age bracket and you ' re you ' re looking for suggestions or um information, I should say you in the webinar, then we ' re able to produce that and uh Jolene additionally mentioned concerning the age treatment offerings as well as there ' s a great deal of which which we are able to provide you as well as they um those webinars have currently come to be extremely very prominent.Um for you whether you are an extremely an account participant or a pension plan account participant Um a lot of interactive things and also I do advise that to you. Um all we need is your mobile number and also an Email you know, for you to sign up and um with your customer ID, you are after that uh off as well as running as well as can discover the um you recognize, the numerous tabs as well as what have you on our member portal.So, If you haven

' t done that already II extremely much advise that to you. as well as I see that Justin is currently offered you recognize, I ' ve had concerning four inquiries'coming through up until now. Well, likewise some added ones that participants of us um the information on the slides which Jolene is uh desperately to and answer those concerns directly to those participants as well as um I ' ll additionally simply intend to repeat something that ' s a bit previously concerning the chat box there.I ' ve put via the link.

If anyone desires to make a visit to see Jolene or the restricted guidance team or the John to get to back to you and also I can see below on my E-mails, I get those and also a single person ' s already finished'that currently for a variety of advice. If you did want some more information, please click that link as well as also as John stated, I ' ll be sending a survey in the future this evening for you.Um so, the first concern that we had I am 65 and strategy to proceed functioning until I ' m seventy. Is it worthwhile checking out a TTR or change to retirement? assigned pension. Head on to Jolene to us please. It can be valuable. The main uh advantages if you ' re looking depends on your objectives. If you ' re aiming to change to retired life to assist increase your financial savings, then, it ' s a concern of are you putting in your concession? Contributions up to that 27500 cap, Okay, So', you ' re already adding as a lot as you can, after that, you don ' t require an added help to place in yet if'due to your commitments, you ' re just placing'in Claim 15 thousand. You ' ve obtained that spaces that you might increase to. Then a shift to retired life can help offer you with the earnings while increasing up your pretax payments, fine? Accessing those tax obligation savings is one benefit of the change to retired life. The various other advantage is merely if people want added earnings, possibly they want to reduce their hrs yet maintain their pay the same. It depends on the goals. If there ' s a for rise in income. If there ' s an objective for keeping revenue on minimized hrs or accessing those tax financial savings and also those are kind of the regular trigger points where we claim yes, it ' s CTR can aid people keeping that. Alright, thanks Jolene and also I think possibly one other thing just to note for that specific member since he ' s over 65. It'' s truly simply a typical designated pension. actually, isn ' t that the CTR lower the sixty-fifth birthday. exactly. Yeah. No.

As well as Sorry. you. I was simply mosting likely to state as well as those typical account-based'pension plans with tax obligation free incomes. They ' re wonderful. When you get them Absolutely, definitely. Uh the following inquiry I ' m going to direct to you, John. Um so, this one is for non consensual'contributions to super, what what is the tax obligation rate relevant? That is on input not incomes. Alright, can you repeat that again? Yes, so for non concession contributions to incredibly what is tax rate relevant. That gets on input not earnings. So, if somebody ' s putting cash into Super Anu as a after tax contributions, fine? Um the bright side exists is no tax obligation on those contributions. The'suggestion is that at some point in its life, the cash which you are taking into very an account has already paid a tax obligation has actually been paid on it.Um Therefore, it would certainly be deemed unreasonable for that to be tired once again. um as an after-tax payment into your extremely. The great information is that there is no tax obligation Many thanks, John.

Um the next concern, I ' ll speak with you. Jolene is what are the benefits of after tax obligation payments? John ' s has talked around, I guess the there ' s no tax obligation as well as after that what are the advantages'of doing it? Certainly, the large of is funny is you ' re putting more cash into your retired life cost savings and that cash is'spent. It ' s going to be trying to gain more revenue for you depending on your financial investment selection yet there are a couple side advantages. One of those I discussed previously is that if by possibility,'you ' re accessing money before age sixty, after that those after tax obligation contributions, you can access them tax cost-free. Where ' s your various other payments? There ' s tax implications Also, there ' s prospective benefits. if your recipients are not your partner or dependent children. So, within incredibly, there is people that you can nominate as a binding beneficiary such as grown-up youngsters but they ' re a tax obligation beneficiary.So they still encounter a little bit of tax should they inherit straight from super as well as if you have a pool of those after tax obligation contributions, then, that pool, your beneficiaries free of tax down the road. The large advantage, even more money in super and also a pair of side uh possible benefits is that since it ' s money that goes in Tax-free, it constantly goes out tax obligation cost-free to whoever it ' s paid to Alright, thanks Jolene.The next concern. is to once more, Jolene is I ' m fifty-eight. Just take uh a payoff or a payment of the fitness center for a worker'' s comp, or conditions are resigned. What would appreciate some advice the 5859 years of age plan appears

intriguing. I guess it ' s actually going to be being available in as well as conversation with you as well as have a real correct strategy'done. It ' s really difficult possibly in this type of sport to offer advice as well as wear ' t be a basic comments. Yeah Typically, this is an intriguing circumstance since it really might be where somebody looks at setting up'a different very an account, all right? As I discussed, if you ' re in that 5859 bracket and also you ' ve obtained accessibility to incredibly yet you ' ve got to retire or possibly can establish up a retirement account if you are meeting that retired life problem but if you ' re still still intending to work, it'might be that you ' re in fact looking at that cash and you ' re reasoning of investments outside of super.So, if you ' re not going to take one of those boxes for gain access to. after that, it could be that you look at exterior investments to ensure that you retain access to that payment number while you ' re developing yourself beyond your old job and beyond your

old job'due to the fact that you could be taking a look at a few alternatives to transform that. you could not prepare to offer up work completely also though you ' ve got uh the payment So it may be that um you understand, depending on the limitations concerning using that cash might really be considering financial investments outside of very to ensure that you wear ' t lock it away. Many thanks, John. uh simply a suggestion. to obtain those questions in. We'' ve just got two left as well as you ' ve obtained that eleventh hour question that ' s uh gets you in your mind.Just shoot that off currently due to the fact that I ' m ready to ask the final two questions that I ' ve got. another is available in. We ' ll let that one go via. Jolene, I-69 and have a super account is your advantage'for me to transform to a pension account. I ' m still working part-time. Mm hmm.'In that case, you ' d be looking at 2 accounts, incredibly account as well as the pension plan accounts, The advantage of the pension plan account is the tax free earnings. So, having cash in that account indicates that super accounts, same financial investment choice.' You could get five or 5 and a half percent on it yet in the pension plan stage because you ' re not paying tax on the passion you may be gaining five and also a fifty percent, six and also a half the disadvantage of is that you have to take out a minimal repayment yearly. So, while you obtain the benefit of those free of tax incomes, you still might have, you ' ve obtained a pension account, you'have to take a payment each year however if you ' ve got use for that repayment, then, there can be some terrific advantages to moving into that pension phase. Hey, I think we ' re having a few technological problems there. You see the'battle in and also out however I can hear you during yet I couldn ' t see you'there. The lights are on time or in the office and they put me in darkness however they flipped back on.

Oh, excellent. I'assume we need to foot the bill. Great. I ' ve hoped. So currently, um there ' s one last inquiry that I can. Oh', sorry. The 2nd one ' s being available in as I ' m almost to um to ask this. I believe it ' s going to be uh that however this set right here I ' ll request for John also.'what costs relevant to CTR that is I would currently pay charges on my account. what costs or what added fees are there for TTR Fund Okay. Thank you, Justin. So, There are fees. Um if you have ATT our account or shift to pension and also primarily, they ' re the exact same costs as what you ' d have in the the super account. So, um basically what that means is that if you have a sober account, you have costs, if you have a pension plan account, you also have costs. Um if you'look at our item disclosure declarations, uh you will certainly see um what our fees require And also that ought to address your inquiry. Truly the same phases are actually well, I ' m extremely and um and um because it ' s all a property, I state the only extra charge would certainly be the$78 a year for that admin charge. That ' s the only additional quantity you ' ll actually be paying. Um yeah. yeah, John, I claimed this is right up your alley. Um this next inquiry simply since of your heritage as well as uh we won ' t state the outcomes this morning.Um just how does the UK personal pension plan affects incredibly So, that is an excellent question. um as well as I should probably postpone that to Jolene. Okay. Alright. UK, Private pensions are affecting your very In other words, it doesn ' t really have an effect on your extremely however it can have an influence on your pension plan privileges within Australia. So, if it is income, it will count as earnings within Australia. Um If you ' re looking at round figure, after that there can be other uh factor to consider there yet the short solution is the UK pension plan doesn ' t affect your extremely annuity in Australia. Thanks, Charlie As well as the last question that we ' ve obtained right here as well as we ' ll close this off as a fortunate last What? Having a pension plan account affect the capability to get an a client I ' m mosting likely to take this.I ' m mosting likely to be hoggish. I ' m going to take all the inquiries. Um the answer is perhaps If a person is a pension age. So, if my age pension plan age Sixty-seven as well as I'turned 67, then, whether

my money is in very or pension plan stage, it doesn ' t issue. It ' s dealt with specifically the very same, fine? I ' m a pension age. All the cash counts gets a bit much more intriguing when you ' ve obtained a hubby and also spouse or when you ' ve obtained partners because if someone is older, after that what they have counts however the younger individual, the cash in their super'account doesn ' t count till they hit'age pension age. So, if prior to age pension plan age, they relocate their very into retired life pension phase, after that, yes, it will certainly impact on their companion ' s age pension plan, Okay. It ' s not

uh simple straightforward. If your age pension plan age, it all matters. If you ' re not a pension age, After that you put on ' t have the age pension. So, you can do whatever you want with very where it gets a bit a lot more great is when you'' re considering a pair where someone is a pension age and the other person isn ' t since if the individual that is not a pension plan as well as starts an incredibly pension plan,'it will certainly have an impact on the older person ' s age pension. How large an effect,'anything from zero to kicking a person off relying on just how much you ' ve got Alright, many thanks Jolene. Well, that ' s um is it for the inquiries as I can prior to that last one? Just one point I ' d like to say prior to I'head back to John to cover points up.Um simply allow you understand'if you do intend to see a replay of this uh wonderful Webinar from uh Jolene and John, you can view a replay of it on the Finances YouTube network

and additionally um it ' s just this uh session has been live stream on our Facebook page also So you can go to our Facebook web page right after as well as uh enjoy a rerun if uh that uh or whether I ' m in Perth is influencing you from heading out. So, you can watch the replay. Thank you John and Jolene. I ' ll head over to John now to wrap points up Thank you, Justin and I'' m thankful you pointed out um a replay of this session and also not the football. So, Thank you once more for everyone for participating in uh this webinar today'. We do value you putting in the time to to sit and also pay attention to us. We we would certainly have like to have done this face to face as I stated at the extremely beginning but uh in the insane world that we live in, that ' s um that ' s not so easy nowadays however I really hope that you have obtained enough details to to uh to make some type of progression with your retirement planning and please be aware that'we are here to aid you and also whether it ' s um myself with with general advice over the phone advice.um or detailed suggestions in our Perth office. Please uh enter contact with us and we ' ll do our very best for you. So, Thanks once more as well as good evening. Thanks.

There ' s tax obligation ramifications Likewise, there ' s possible advantages. The big advantage, even more money in incredibly and a pair of side uh potential benefits is that since it ' s money that goes in Tax-free, it constantly goes out tax obligation complimentary to whoever it ' s paid to Alright, many thanks Jolene.The next question. As I stated, if you ' re in that 5859 brace and you ' ve obtained accessibility to extremely yet you ' ve obtained to retire or potentially might set up a retired life account if you are meeting that retirement problem yet if you ' re still still planning to work, it'could be that you ' re actually looking at that cash and you ' re thinking of financial investments outside of super.So, if you ' re not going to take one of those boxes for accessibility. We'' ve just obtained 2 left and you ' ve got that last minute concern that ' s uh obtains you in your mind.Just shoot that off now since I ' m regarding to ask the final 2 inquiries that I ' ve got. Um if you have ATT our account or change to retirement account as well as primarily, they ' re the very same costs as what you ' d have in the the incredibly account.

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