Patrick and Emily: Transitioning into a Secure Retirement

Patrick (65) and Emily (63) are nearing retirement but are unsure of how to best utilize their savings and assets. Patrick has $850K in superannuation, and Emily has $400K. They also own a family home worth $1.5M and have $250K in additional savings. They are concerned about how to create a sustainable income from their savings, and whether downsizing their home would be a wise decision for their retirement plan.

• How do we turn our savings into a steady income stream for retirement?
• Should we downsize our home, and if so, when is the best time to do it?
• Will our savings be enough to sustain us for the next 25 years?

We took the time to understand Patrick and Emily’s lifestyle goals and created a plan that optimized their existing assets while providing them with flexibility. First, we moved their super funds into superior accounts, streamlining their investment strategy and minimizing fees. To generate a stable income, we implemented a pension strategy, allowing them to draw down from their super in a tax-efficient manner, targeting an income of $90K per year.

We also advised on the optimal timing for downsizing. By selling their home in five years when they are ready to move to a smaller property, they can unlock approximately $700K in equity, of which a significant portion will be contributed to their super. This will further boost their retirement income and ensure long-term financial stability.

• Sustainable Income: Patrick and Emily will receive $90K annually from their super and investments, providing them with financial security throughout their retirement.
•  Downsizing Strategy: Our timing recommendations for downsizing give them the flexibility to choose the right time to sell, maximizing their available funds without rushing.
• Tax Efficiency: Consolidating super accounts and implementing a tax-efficient pension strategy ensures they keep more of their hard-earned money.
• Confidence in the Future: With a clear plan in place, Patrick and Emily feel secure knowing their financial future is in good hands.