SS's nearing retirement: What's your plan with super?
- Thread starter BMan
- Start date
I think the government will have to tax super at some level to ensure that the budget stays on track. It will still be concessional for retirees but if I was a betting man it will happen with the next 10 years...as baby boomers put more pressure on pensions...
I also believe that they will also means test the primary place of residence to somethng like $1m.
I also believe that they will also means test the primary place of residence to somethng like $1m.
For me, sell land inside SMSF in 10 years time and with the proceeds of sale fund a tax free lifestyle
Agree with all this. I'm not making any long range plans based on the tax implications of super.
I'm not sure when I'll retire . I'd get bored if I wasn't doing something . Dad retired when he was 80. Non Physical job so it's possible and it'll keep the brain active.
We have 4 IP's in super fund and more outside . Aim will be to pay down a core number of these , via a combination of rent / additional payements and selling some properties . We're not buying any more IP's at the moment , but plan to sell our current PPOR to our downsizer ( already bought ) in around two years . If we see good ops we may buy more at that stage , but I'm thinking that it might be too late in the current cycle.
Want to have an income stream inside and outside super ( don't trust government ...)
Cliff
We have 4 IP's in super fund and more outside . Aim will be to pay down a core number of these , via a combination of rent / additional payements and selling some properties . We're not buying any more IP's at the moment , but plan to sell our current PPOR to our downsizer ( already bought ) in around two years . If we see good ops we may buy more at that stage , but I'm thinking that it might be too late in the current cycle.
Want to have an income stream inside and outside super ( don't trust government ...)
Cliff
Im with you on that one....Our SMSF is just icing on the cake for properties outside of Super.
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Which is why we see our current PPOR as an part of our retirement plan ... in 10 years, or so, will downsize - effectively doubling our current retirement principle.
For the record I am not a fan of SMSF's....they a wrought with danger in my opinion.
I have instead gone for a master fund which allows me to switch across various asset category funds. I still plan to have about $1m in super in the next 7-9 years...I am aobut 40% of the way there...
The gubberMINT will be looking to relief retirees of their funds as they widen the tax base. Without immigration...we would be in worse state of affairs. Just look at what is awaiting Europe! They are already cutting pensions there..and are on track to raise the retirement age to 70 plus.
For example in Austria average pensioners get about 700-1000 Euros per month for singles and couples about 18k. That is not a a lot. Southern Europe is even worse!
Australia is still not too bad...single pensioners are paid $21.5k and couples about $30k still not too bad.
I want to have at least 120k net per annum.
I have instead gone for a master fund which allows me to switch across various asset category funds. I still plan to have about $1m in super in the next 7-9 years...I am aobut 40% of the way there...
The gubberMINT will be looking to relief retirees of their funds as they widen the tax base. Without immigration...we would be in worse state of affairs. Just look at what is awaiting Europe! They are already cutting pensions there..and are on track to raise the retirement age to 70 plus.
For example in Austria average pensioners get about 700-1000 Euros per month for singles and couples about 18k. That is not a a lot. Southern Europe is even worse!
Australia is still not too bad...single pensioners are paid $21.5k and couples about $30k still not too bad.
I want to have at least 120k net per annum.
My 2 cents ; )
Super will always be taxed at a lower rate than payg so it makes sense to park money there.
Access may be an issue for some but the advantages can outweigh the downside.
Using a master fund is good but you need to have sufficient funds in your account. Also you don't have the same issues as running your own fund.
SMSF give you some flexibility but who knows what changes are on the horizon? The more members the better for building up your investment capital.
Like many here, I have an each way bet.
Super will always be taxed at a lower rate than payg so it makes sense to park money there.
Access may be an issue for some but the advantages can outweigh the downside.
Using a master fund is good but you need to have sufficient funds in your account. Also you don't have the same issues as running your own fund.
SMSF give you some flexibility but who knows what changes are on the horizon? The more members the better for building up your investment capital.
Like many here, I have an each way bet.
Just be careful....as a lot of baby boomers plan to do this....the issue will be how well the market will be at that time. If the market is very poor it will affect your lifestyle.
One of the first rules of investment is not to have too much house!
I see a lot of Baby Boomers who plan to sell out of their McMansions may get caught by this in Sydney.....I can foresee on the future the growth rates on McMansions might not be great....but on ther side units or small houses..particularly 3brm in central areas will perform extremely well!
One of the first rules of investment is not to have too much house!
I see a lot of Baby Boomers who plan to sell out of their McMansions may get caught by this in Sydney.....I can foresee on the future the growth rates on McMansions might not be great....but on ther side units or small houses..particularly 3brm in central areas will perform extremely well!
While I believe the risk of rule changes to super are great, I too believe that Super will always be tax advantaged compared to other structures. There is a risk that regulations will change for everything - trusts, negative gearing, CGT, CGT on PPOR, the list is endless.
IMO it's prudent to have money inside and outside super.
In my case with little commitments and a high income it makes sense to contribute the max to super.
each to their own.
