Setting a roadmap for our 60 year old client to retire at 63

Background:

Our client is 60 years of age, married and would like to retire when she is 63. She has recently sold an investment property where there was no capital gain. Her annual income is approx. $102,000 and she has net investment assets of $417,000. This excludes her home. Following the sale of her investment property this client has $60,000 that she would like to look at putting into superannuation.

Goal:

  • Boost superannuation balance to help with age 63 retirement goal.
  • Reduce tax payable in current financial year (FY) following investment property sale.

Strategy:

  • Contribute $60,000 from savings into superannuation account in current FY.
  • Maximise concessional contribution cap of $27,500 in current FY.
  • Use catch up contribution cap space of $44,670 to increase amount of super contribution we can claim as a tax deduction in current FY.

Advice Outcomes:

With a super contribution strategy in place our client was able to increase her superannuation balance to help with her age 63 retirement goal by approx. $51,800.

The expected tax saving in current FY with contribution strategy in place is approx. $12,605.

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.