For the month of May there are a few things I want to discuss. Before we get into the headline question on this blog, we are heading into tax season soon so let me answer one popular question first.
DO I NEED TO LODGE A TAX RETURN?
I often get asked this and it is usually in conjunction with people in receipt of Centrelink payments. Centrelink get asked this question a lot too, so I wanted to let you know about their handy calculator you can use to help answer this question. If you are still in doubt, it is best to cross check with us, or your Accountant just to be sure – to be sure.
HOW MUCH DO I NEED TO RETIRE
If you are staring down the barrel of retirement, or happily enjoying your retirement wondering how you ever managed to find time to work – this website might be of interest to you.
The Association of Superannuation Funds – ASFA. Specifically, ‘The Retirement Standard’. I constantly get asked – how much do I need to retire??, how much are my peers spending in their retirement?? This report addresses these questions and “provides a comprehensive breakdown of expenses for both a comfortable and modest lifestyle, for couples and singles to maintain a healthy, vital, and connected lifestyle in retirement. It also estimates the superannuation balance required to achieve this.”
It is important to note though – DO NOT TAKE THIS FOR GOSPEL – as everyone’s situation is different. For example, what happens if you hold a large amount of equity in your home and nowhere near the balances in this document, where do you stand with this?? OR – HELP I have no Super as I was self-employed, but I hope to sell my business and use that to put towards my retirement OR I have no Super, I have cash at bank and I rent, where do I stand?
There are A LOT of different things that you can do, if you do not meet the parameters of this report, to have a happy and prosperous retirement – it takes strategic planning and understanding all the rules… which seem to always keep changing – fun!! The main thing I want you to get out of these reports are more around retirement income figures rather than retirement savings balances. When we know what your costs of living are, we can then stress test different scenarios around how to structure assets to achieve this.
MEDICARE & CENTRELINK UPDATES
If you are not already across the page below – you need to get on it! Handy information about Medicare and Centrelink updates.
That’s it from me this month, over and out.
– Jennifer Goldsworthy