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Retirement planning – the importance of a super strategy

October 20th, 2017

In Australia, a person can retire at any age. However, it’s less a question of when and more a question of how – that being, how to fund your retirement.

There’s no single approach to retirement and accumulating earnings to fund the desired retirement lifestyle. While some people plan their retirement with investments including a share portfolio, property, cash or alternative investments, others are more comfortable having their super fund make those investment decisions for them. Preference for one or combination of these approaches depends upon the individual circumstances and preferences.

Why choose Superannuation?
Super is a tax effective investment – meaning it receives special tax treatment. For example, certain contributions and earnings are taxed up to 15% as opposed to an individual’s marginal tax rate, which can be much higher. Super also receives special tax consideration when someone retires, currently from age 60, in which the income drawn and earnings are tax free. Conversely, investments outside super remain subject to individual marginal tax rates.

Planning your approach to superannuation is more than simply accumulating a large balance. It involves accumulating a specific dollar value required to meet your goals and expenses during retirement.

Unfortunately, it’s not uncommon to have a gap between what is accumulated during your working years and the amount actually required for retirement. Fortunately, bridging the gap can be as simple as ensuring your personal super funds, together with the right contribution level, are suited to your long-term goals.

Additional contributions and reviewing the way in which your funds are invested may make a significant difference in assisting you to meet your retirement goals.

Although the main aim of superannuation is about funding your retirement lifestyle, it can also provide personal life insurance to assist you (or your family) with additional financial support when needed to maintain or adapt your lifestyle in the event of serious injury, illness or untimely death.

The First Super financial advice team is here to help answer your questions in relation to ‘planning for retirement’.  The types of financial advice available include:

  • General Advice – provided on basic superannuation topics concerning First Super, not taking into account your personal circumstances or financial situation. You will need to decide on the appropriateness of the general advice being provided. There is no fee for this advice;
  • Limited Advice – providing personal advice (written) on ‘limited’ superannuation advice topics (e.g. contributions, investment choice, TTR, commencing an account-based income stream in retirement or Insurance Needs Analysis). The personal advice is provided on an individual member basis (i.e. partner excluded from advice process, although the partner’s financial situation may be taken into consideration). There is no extra cost to you as any associated cost is covered under Intrafund arrangements.
  • Comprehensive Advice – providing personal advice (written) on more complex topics (e.g. maximising age pension strategies, redundancy, TPD claims, Non-Concessional Contribution bring-forward rule, Insurance inside or outside superannuation, debt management, super consolidation etc.). There is a fee for this advice, which is disclosed at the initial obligation and fee-free meeting.


The content in this newsletter is accurate and reliable as at June 2017. This information is of general nature only and does not take into account your personal circumstances or situation. We recommend that you seek qualified financial advice before making any investment decision. This newsletter is provided by First Super Pty Ltd ABN 42 053 498 472, AFSL No. 223988, as the Trustee of First Super ABN 56 286 625 181. If you intent to invest or hold this product, you should obtain and consider a copy of the Product Disclosure Statement which is available by calling 1300 360 988.