Married couple in their mid 50’s who are currently renting plan their retirement for 10 years time including property purchase in the country

Background:

Our client are a married couple in their mid 50’s with a household income of $300,000/annum. They are currently renting and have super balances worth $488,000, spread over 6 super accounts. They also have savings for a property deposit of $250,000.

Goals:

  1. Develop a financial plan for their retirement. The goal is to be able to retire in 10 years time.
  2. Put in place a savings plan that will allow them to purchase a property in the country (for retirement) within 5 years.

Strategy:

  • Consolidate their superannuation accounts and move funds to a low cost super provider.
  • Start salary sacrifice strategy and invest up to annual super cap of $27,500/annum. Clients will be contributing $11,000 of their pre tax money into super each year.
  • Set up a structured property deposit savings plan and save $5,000/month. Move these savings to a high interest savings account with the current interest rate being 4.75% per annum.

Advice Outcomes:

Our clients annual fee saving from super consolidation (based on current balances) is $4,029/annum. The combined tax saving with super contribution strategy in place is $5,280/annum and additional super contribution into each account is $9,350/annum.

New property deposit savings account advice leads to an increase in annual interest savings of $4,375/annum. With structured savings plan in place it is expected clients will have $650,000 available for their property purchase within 5 years.

Long term super modelling shows that based on our assumptions clients will have combined super balances of approx. $1,240,000 in 10 years time at their desired retirement age.

Ryan Porter is a Wealth Coach at Catalyst Wealth Group. His mission is to help his clients achieve financial success and live their ideal life.

Any advice or information in this publication is of a general nature only and has not taken into account your personal circumstances, needs or objectives. Because of that, before acting on the advice, you should consider its appropriateness to you, having regard to your objectives, financial situation or needs.