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How can Cotter Financial Services help?

Let’s look at some ways to help boost your retirement savings.
Strategies to boost your super savings
Superannuation offers one of the best opportunities to boost your retirement savings because super is taxed less than normal investments. There are several different super strategies you can consider but you don’t need to pick just one. As you’ll see, you can often achieve a better result if you choose more than one strategy.
Transition to Retirement
Available to over 55’s, Transition to Retirement is a strategy that involves taking some or your entire super and converting it into a pension, even if you’re still working. This allows you to:
  • Reduce the hours you work without necessarily reducing your income
  • Use some or all of this pension to invest in super
  • Take advantage of lower taxes to boost your retirement savings.
The tax benefits of Transition to Retirement
The real benefit of Transition to Retirement is that by taking money out of your super and putting it into the pension environment, any investment earnings you receive will be tax-free. Your return from this money will be higher than if it remained in your superannuation account.
What to be aware of with Transition to Retirement
Although there are tax advantages, when you have a pension there is a minimum amount (draw-down) that you must take out each year. You need to be careful that this doesn’t deplete your super too quickly. One way to avoid this is through our next strategy – salary sacrificing.
Salary sacrificing
Salary sacrificing is when you reduce your salary in return for your employer making additional contributions to your super. Again this has tax advantages. Salary sacrificing means you can get the tax advantages of Transition to Retirement without depleting your super so quickly.
Voluntary contributions
The Government wants you to invest in your super. That’s why super is so tax friendly. If you sell an asset outside of your super, why not invest that money in your super? Due to the tax advantages, it is very hard for normal investments to match the returns you’ll get from super.
Combining super strategies as you near retirement
If you’re over 55, it can be very effective to combine the Transition to Retirement strategy with co-contributions and salary sacrificing. These strategies, used together can without doubt help you reduce tax, increase your savings and provide for your ongoing cost of living.
Do you want help with your superannuation strategies?
If you want to talk to an expert about Transition to Retirement, Salary Sacrificing or superannuation in general, contact us.

A Cotter Financial Services Financial Planner will:
  • Summarise your current financial position and future goals;
  • Analyse any taxation or superannuation laws, or Centrelink rules that will apply to your situation;
  • Recommend investments that will help you achieve your goals;
  • Explain what you need to do next;
  • Highlight any fees payable;
  • Create a framework for future financial decisions and show you:
  • How you can still earn a regular income once you’ve retired;
  • How to reduce tax payable;
  • How to top up your income with Centrelink benefits;
  • How to maximise your super – even after you’ve retired.

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When can I start an account based pension?
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Cotter Financial Services is a partnership between Cotter Services Pty Ltd ATF Cotter Family Trust & DFS (Ipswich) Pty Ltd
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