Supercharge Your Super: Advanced Strategies for Seniors Nearing Retirement

Retirement is approaching, and with it comes the responsibility of ensuring your financial well-being. While understanding the basics of superannuation is a good start, diving deeper into advanced strategies can significantly boost your retirement nest egg.

Maximizing Contributions:

• Salary Sacrifice: This involves channeling pre-tax salary into your superannuation, reducing taxable income and maximizing contributions.

• Downsizing Contributions: Utilize the proceeds from selling your main residence (age 60 or over) to contribute up to $300,000 into your super.

• Spouse Contributions: Contribute to your spouse's super, especially if they have a lower income, to boost their retirement savings and potentially access government co-contributions.

Investment Strategies:

• Transition to Conservative Investments: As you approach retirement, consider gradually shifting your super investments to a mix of less volatile options like fixed income, cash and physical gold bullion.

• Pension Transfers: Transfer your super balance to a retirement income stream, like an account-based pension (ABP), to access regular income while maintaining control over your investments.

• Consolidation for Choice: Review your super funds and consolidate them into one with lower fees and wider investment options.

Wealth Insurance:

• Consider real money (physical Gold): In times of high and very high inflation, it is prudent to keep some of your wealth outside of the system, free of counterparty risk from banks failures, currency collapse and reckless goverment spending. A 5-10% allocation to the physical bullion can protect your wealth in the event of an economical collapse or currency reset.

Tax-Effective Strategies:

• Consider the Pension Transfer Balance Cap: Currently at $1.7 million, exceeding this limit can trigger tax implications. Plan your super contributions and withdrawals accordingly.

• Utilize Tax-Free Components: Remember that a portion of your super balance may be tax-free, depending on your contributions and employment history.

• Seek Tax Advice: Consulting a tax professional can help you navigate complex tax rules and optimize your superannuation strategies.

Estate Planning:

• Nominate Beneficiaries: Designate beneficiaries to receive your super death benefit, ensuring your assets are distributed according to your wishes.

• Review Binding Death Nominations: Regularly review existing nominations to ensure they reflect your current circumstances and beneficiaries.

• Consider Binding Financial Agreements: If entering into a new relationship, consider a binding financial agreement to protect your superannuation assets.

Additional Resources:

• Association of Superannuation Funds of Australia (ASFA): https://www.superannuation.asn.au/

• Australian Securities and Investments Commission (ASIC): https://asic.gov.au/

• Financial Planning Association of Australia (FPA): https://portal.fpa.com.au/s/

Retirement planning is a long-term process. By proactively deploying advanced superannuation strategies and seeking professional advice, you can build a solid financial foundation for a comfortable and secure future.