Accessing your superannuation
savings
Once you have met a condition of release, you can
withdraw your superannuation as a lump sum, or commence
a superannuation
pension.
Lump Sums
In most cases, a lump sum withdrawal from super after age
60 will be tax-free. If you withdraw a lump sum prior
to this age, some tax may apply. You should always think
carefully about the need to make lump sum withdrawals,
as each one will reduce the super balance that you are
relying on to fund your retirement.
Pensions
A superannuation pension is just like a normal super fund,
with the requirement that you take at least a minimum
payment in each financial year. This minimum payment
starts at 4% of your account balance when you are under
65, and gradually increases as you get older. In most
cases, all pension payments will be tax-free after you
reach age 60. If you are under 60, some tax may apply.
Once you have reached your preservation age (currently 55), you are able to commence a Transition to Retirement pension, even if you don’t stop working. There are 2 main reasons why you might want to commence this type of pension:
| 1. | To reduce your working hours and supplement your income with pension payments from a Transition to Retirement pension, or |
| 2. | Continue working, salary sacrifice a significant amount of your salary into superannuation, and live off income from your Transition to Retirement pension (this strategy can provide a powerful increase in your superannuation balance by the time you retire). The main restriction on a Transition to Retirement pension is that a maximum payment of 10% of your account balance per financial year applies. You are also unable to make lump sum withdrawals. These restrictions generally apply until you retire or reach age 65. |
Superannuation
advice
Regardless of whether you are young or old, you must consider
your superannuation strategy now for the future.
In fact, the younger you are the easier it is to grow your nest egg. You will be thanking yourself in the future for your financial wisdom!
Your Count adviser can help you:
 |
Determine how much super you will need in retirement. |
|
Choose a superannuation fund that suits your risk profile and retirement goals. |
|
Choose a super strategy and discuss ways you can boost your super contributions tax-effectively via salary sacrificing etc |
DIY
superannuation
A DIY (Do-It-Yourself) superannuation fund is an individual,
family or small business based superannuation fund that
consists of less than five members.
Members of these funds are given a higher degree of control over the funds invested.
|
Comparing DIY superannuation funds |
|
What you can invest in |
|
How can i register? |
Comparing
DIY superannuation funds
When looking at which super fund to go with it is always
important to compare the advantages and disadvantages. Below
is a table that summarises this for you.
| Control
over your investments |
High
cost |
| Tax
concessions |
Time
consuming |
| Cost
effective |
Riskier |
| Estate
planning opportunities |
Compliance |
| Investment
flexibility |
|
| More
retirement planning options |
What
you can invest in
With Count’s DIY superannuation fund options, you
can invest in various investments, which include but are
not limited to:
|
ASX listed securities |
|
Managed funds |
|
ASX fixed interest securities |
|
Securitised assets |
|
Real estate |
However, what you can invest in is determined by your investment strategy. Your investment strategy is set when you establish your superannuation fund and must be adhered to throughout the life of the fund. There are six main investment strategies to choose from:
| 1. | Capital Secure – suitable for investors seeking capital security. This option provides a secure return with very low risk of capital loss. |
| 2. | Conservative – suitable for investors seeking a higher return than cash who are prepared to accept modest risk of capital loss. |
| 3. | Moderate – suitable for investors with a medium investment timeframe who are willing to accept a moderate risk of capital loss with a moderate level of growth. |
| 4. | Balanced – suitable for investors with a longer time frame who are prepared to accept moderate/high risk of capital loss with along investment timeframe. |
| 5. | Growth-oriented – suitable for investors with a medium to long-term time frame who are willing to accept moderate/high risk of capital loss but with a higher return. |
| 6. | High Growth – suitable for investors willing to accept high risk of capital loss in the short-term with higher returns over the long-term. |
How
can I register?
If you would like more information on Count’s DIY
Super Options – contact your Count adviser.
They will take care of the entire registration process for you and explain everything you need to know.
 |
As at 9 April, 2008 |
