Jan132025
NewsSuperannuation Fund Understanding Superannuation

Understanding Superannuation

News, Superannuation Fund

One of the many financial services we offer at Approved Financial Planners is help with your superannuation fund. Whether you choose self managed superannuation or any of the super funds available to you, we can provide sound financial advice and improve your understanding of superannuation.

How Superannuation Works

Money is placed into your superannuation account, also known as a “super account” or “super,” by you, your employer or both. The money in your super fund is then invested with the intent of it growing in time, even though it will occasionally return a negative result for the year. *

As a super grows, the money earned is reinvested and also earns a return, helping your balance grow even more. On member contributions for which you claimed a tax deduction or on contributions from your employer, your tax is only 15% of any contribution up to $30,000 per year. The $30,000 limit is known as the “concessional contributions cap.” *

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Apr42023
Retirement Planning Financial Mistakes Retirees Make

What Are The Biggest Financial Mistakes Retirees Make?

Retirement Planning

Australian retirees increasingly report financial insecurity as a reason for returning to work or delaying retirement. The biggest financial mistakes retirees make are key drivers, including rising living costs, inadequate savings, unexpected expenses, misunderstanding of retirement entitlements, and unsound investment or spending decisions. (The Guardian)

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Apr42023
Retirement Planning How Long Will My Money Last When I Retire?

How Long Will My Money Last When I Retire?

Retirement Planning

Retiring early is an appealing idea: more time for travel, hobbies, family, and personal fulfilment. But there’s a price. More years off work mean more expenses, more risk, and greater demands on your savings, which raises the question: How long will my money last when I retire? In Australia, with rising life expectancy, increasing cost of living, and a changing superannuation and Age Pension environment, planning for early retirement requires careful, data-informed calculations.

This article explains the effect of extra years in retirement, what research shows about returning to work, and gives a straightforward method to calculate how much you’ll need if you choose to retire before traditional ages.

What is “Early Retirement” in Australia

  • According to the ABS (Australian Bureau of Statistics), in 2020-21 the average age of retirement (people ceasing full‐time work or exiting the labour force) was ~ 56.3 years for all retirees aged 45+. (Australian Bureau of Statistics)
  • The average intended retirement age is older (~ 65.4 years in 2022-23). (Australian Bureau of Statistics)
  • Many people wishing to retire before that are hoping for what might be called “early retirement” — permanently stopping or significantly reducing paid work before the mid-60s.

Thus “early retirement” might mean retiring at, say, age 55, or even earlier, depending on one's expectation and health, housing status, lifestyle etc.

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