Breaking the Chains: Practical Steps to Eliminate Debt Before Retirement
For many Australians, debt has quietly followed them into retirement – mortgages, credit cards, or personal loans that reduce lifestyle choices and add stress. This article outlines a clear, step-by-step plan to regain control before retirement:
1️⃣ Get organised – understand exactly what you owe, what you earn, and where your money goes.
2️⃣ Prioritise repayments – tackle high-interest “bad debt” first and consider consolidation or refinancing.
3️⃣ Maximise assets – use savings, super contributions, or even downsizing strategically to eliminate debt.
4️⃣ Seek advice – working with a qualified adviser can boost confidence, improve planning, and fast-track progress toward a debt-free retirement.
The message is simple: take action early – thoughtful, sustained steps today can mean a far more secure and stress-free future tomorrow.
Rethinking Retirement: How Much Is Enough for a Fulfilling Future?
For many Australians, the question “how much is enough?” is more emotional than mathematical. This article challenges the traditional focus on a fixed retirement number and instead explores what a fulfilling retirement really looks like. It highlights that the right amount isn’t about hitting a target balance – it’s about aligning your finances with your lifestyle, health, and values. A satisfying retirement comes from thoughtful planning: balancing income streams, factoring in longevity, and building flexibility into your spending.
The key message: retirement isn’t a finish line – it’s a new chapter that deserves a personalised plan built around what truly matters to you.
Navigating Deeming Rates: Strategies for Building Wealth and Security in Retirement
Deeming rates play a crucial role in how Centrelink assesses income from your investments and can directly affect your Age Pension payments. This article explains how the deeming system works and offers practical ways retirees can structure assets to maintain benefits while building financial security.
It explores smart strategies for balancing income needs, tax efficiency, and Centrelink entitlements, while highlighting the importance of staying informed as rates and thresholds change.
The takeaway: understanding deeming rates isn’t just for policy experts, it’s a key part of managing your retirement income and protecting your long-term financial wellbeing.
Q & A
- Tax on super in pension phase: Investment earnings in the accumulation phase are taxed at 15%, but once you transfer to an account-based pension, earnings in retirement phase are tax-free (up to the $2m transfer balance cap; amounts above remain taxed in accumulation).
- How Centrelink assesses account-based pensions: Your balance counts under the assets test; for pensions started on/after 1 Jan 2015, income is generally assessed via deeming, not actual drawdowns. Earlier (“grandfathered”) pensions may be assessed differently.
- Leaving money to grandchildren via super vs estate: Super isn’t automatically part of your estate; benefits are paid to dependants or to your estate if directed. Since grandchildren are usually non-dependants, paying to the estate then distributing via your will is often required; note potential tax on benefits to non-dependants.
