1. Retirement Income Streams
One of the most effective ways of using those savings that you have worked hard to build up is transforming them into an “income stream”. There are many names that these are known by – Account Based Pension, Allocated Pension, Annuity – but essentially you are using your capital to replace your wages.
These income streams are usually tax free and can be paid directly into your bank account fortnightly, monthly, quarterly, half yearly or yearly – whatever suits your lifestyle.
And if you have the occasional need for some extra (the holiday, new car or just a bout of bills), additional amounts can be drawn out quickly to cover those expenses.
The income stream also adds to your freedom from paperwork – you don’t have to include this in a tax return (if you are aged over 60). Many retirees find they will never have to do a tax return again.
At Menico Tuck Parrish we have had many years of experience designing income streams to match your lifestyle needs. Longevity is the biggest risk you face at this time of your life – you may outlive your money! So ensuring that you have sufficient income assets to meet your immediate needs but balancing these out with growth assets for the long term is essential.
2. Government Benefits
When planning for your financial future, it is important to find out if you qualify for any of the government benefits available to individuals and families. These include (but are not limited to) the Age Pension, Mature Age Allowance and Disability Support Pension. There is also a range of benefits for service veterans.
As well as the Age Pension, retirees may be eligible for benefits including the Health Care Card, Pensioner Concession Card and the Pharmaceutical Allowance. Eligibility criteria apply to each benefit. These criteria can be quite complex and can change over time.
The Age Pension can form the cornerstone of some people’s retirement income. We can help you structure your investments and assets to maximise your chances of qualifying for a pension. We’ll review your situation and look at your assets, including property, investments and superannuation savings, and assess how these could affect your social security entitlements.