Shane: Truck Driver Facing Retirement Uncertainty

Shane, a 63-year-old truck driver with a robust annual income of $135,000, has diligently saved $450,000 in superannuation. As he plans for retirement in a few years, Shane is concerned that his super alone may not be sufficient. His home, valued at $1.2 million, is his most significant asset, but he knows relying on his super will leave him financially short. He needs guidance on when to downsize, how much he can spend on a new home, and how to invest the remaining funds to ensure a secure retirement income.

• Retirement Readiness: Will my savings be enough for a comfortable retirement?
• Downsizing Strategy: How does the process work, and when should I downsize?
• Financial Structuring: How can I ensure my finances are secure for retirement?

We crafted a personalized plan to address Shane’s concerns and goals. First, we optimized his superannuation contributions to strengthen his retirement fund. Shane decided to sell his $1.2 million home and downsize to a $650,000 property, leaving him with $550,000 in surplus funds. We advised him to contribute this surplus to his super over the next two years, taking advantage of tax efficiencies and setting aside $70,000 as a cash buffer for flexibility.

Additionally, we recommended salary sacrificing to further enhance his superannuation while reducing his income tax. Given his strong current cash flow, we decided against a transition- to-retirement drawdown, focusing instead on maximizing his future pension.

• Income Security: By age 65, Shane’s super balance is expected to exceed $1 million, providing a comfortable annual income of $60,000, meeting his goal of $1,200 per week.
• Tax Efficiency: Our strategy minimizes taxes and maximizes super contributions.
• Peace of Mind: Shane now has clear guidance on when to downsize and how much he can afford on a new home, with the assurance that his investments are professionally managed.
• Future Flexibility: Shane can choose to retire at 65 or continue working, with the financial freedom to make decisions without concern.

Shane is now confidently approaching retirement with a clear plan in place. He knows exactly how to manage his downsizing and investments to secure his future income. With a well-structured financial strategy, he can enjoy retirement without financial stress, having the flexibility to adjust his plans as needed.