David and Sarah: Securing a Comfortable Retirement

David (58) and Sarah (56), both earning $130,000 annually, had diligently saved for retirement, accumulating $625,000 in super and $338,000 in savings.

With no mortgage and a plan to retire in four years, they were concerned about ensuring their savings would last throughout retirement. Their goal was to make their money work effectively for them while avoiding unnecessary risks.

• Longevity of Savings: Will our retirement funds last throughout our retirement years?
•  Maximizing Contributions and Minimizing Taxes: How can we optimize our super contributions and reduce our tax liabilities and have enough capital for retirement.
•  Low-Risk Investment Strategy: What investment approach can meet our income needs without exposing us to excessive risk?

We developed a tailored retirement strategy to address David and Sarah’s concerns and objectives. By splitting their savings between their super accounts and utilizing salary sacrificing along with catch-up contributions, we maximized their superannuation while minimizing their current income tax liabilities.

To align with their low-risk tolerance, we recommended a diversified asset allocation strategy that balanced security with necessary growth. This approach ensured that their investments would provide steady income while protecting their capital. We projected their future retirement income and assessed potential age pension eligibility, crafting a plan that would allow them to comfortably draw an estimated $84,000 annually without depleting their super balance too fast.

• Enhanced Financial Security: With their combined super expected to exceed $1.4 million by retirement, David and Sarah will enjoy greater financial stability.
• Reduced Stress and Increased Confidence: The clear retirement path and strategy for future pension eligibility provide them with peace of mind, knowing their finances are well-managed.
• Stable Income: The plan ensures a dependable income of $84,000 per year, enabling them to retire comfortably and sustain their desired lifestyle.