In your 60s

The lifestyles of people in their 60s are becoming increasingly diverse. More people are travelling, taking up new sports, learning new skills and working later in life.

You might have retired, be semi-retired or still be working full-time. Perhaps you want to help your grandchildren or children financially. You may even be considering downsizing your home to make sure your money lasts for a long time, and to support your lifestyle choices.

Any lump sum super withdrawal or super income stream you receive once you turn 60 will now generally be completely tax-free. But while there are increased tax benefits of starting a super income stream, there's no obligation to start drawing on your super. You can leave your money in super as long as you want.

1. Get financial advice on accessing your super while still working

This could really boost your wealth. Some people access their super while still working, so they can reduce work hours without compromising their income. But the real power lies in using your super income stream to maximise your potential to salary sacrifice into super.

2. Maximise government benefits

Accessing your super in the form of an income stream can offer several benefits. As well as providing a regular income, they may receive favourable Centrelink income test treatment. Also, there is no tax on the super income stream or the earnings in the fund.

3. Accelerate your super savings

If you are still working, salary sacrificing can be one of the most tax-effective ways to put money into super - meaning you get more in retirement savings, particularly if you're on a higher personal tax rate.

4. Use non-super assets to contribute to super or provide an income

Some people sell non-super assets as they approach retirement and contribute the money into super. This can offer considerable tax advantages as tax on earnings in super is only at a maximum 15% rate (less additional concessions such as CGT discounts and franking credits) and there is no tax on earnings from investments that support super income streams. Ultimately, this may result in you having more in retirement.
Another option is to draw on money invested outside super to supplement your current income so you can salary sacrifice more into super.

5. Release other wealth

Consider selling your home, moving to a smaller place and using the left-over equity to invest elsewhere. A financial planner could show you how to invest for maximum advantage.

6. Child advancement

Child Advancement involves the automatic transfer of ownership of an investment to a child on them reaching a nominated age, usually between 10 and 25 years. The child does not have to pay tax, stamp duty, or fees and charges as a result of the transfer. Insurance or investment bonds are a type of investment that may provide a child advancement option.

7. Review your will

Estate Planning
Among other things, estate planning involves having a strategy so that in the event of your death, the distribution of your assets is managed as you intended. This is generally achieved through a Will.
Estate planning may also involve identifying and appointing another person to manage your affairs whilst you are still alive if you lose the ability to manage your own affairs.