Get SASS Smart program

Speaker 1 [00:00:04] The job has changed just so much. It's so constant. There is always something to do. Always something on the go. You never really switch off from it, even on holidays. So I'm looking forward to the next phase to retire, to not have to worry about emails all the time, not have to worry about the constant work, and and just do things that I want to do for a change. I went to a seminar in May, and the planner went through all the very complicated statements that we get that I honestly didn't understand. And my main concern was that I wouldn't have enough money to retire. I want to still keep the lifestyle I'm accustomed to. They went through all of that. We put another package in place and hopefully that everything will pan out really beautifully and I'll have enough money to do the things I want to do with my retirement. My boyfriend is retiring, hopefully next year. We both want to travel, we want to go to Europe.  I'd love to do the Scandinavian countries and I'd really like to do some charity work. So salary sacrificing is the road that I'm going to head down now so that I won't be in quite a higher tax bracket, and it'll also be putting some more into another super package. That was really great. They took the time to explain all of those to project the the possible return on them and put a package together, so it's great. My planner has been wonderful. He's very approachable. Very friendly. He's got a really great understanding, I think, of me, and he's only met me once or twice, but very patient. Lot of time to go through things and to explain the details. And it can be very complicated and certainly very daunting. I found the, the, the lead up to this and for the retirement process quite daunting, the fear that you're not going to have enough money to do what you want to do. He was able to alleviate that. 

Speaker 1 [00:00:06] Maximizing your SASS benefit is a great way to ensure that you have financial security once you retire. The more you contribute up to 9% of your super pool salary, the more you'll get. Once you exit. SASS members often underestimate the impact of their ongoing contributions have on their final benefit, when in fact a little goes a long way. There are several ways you can maximize your SASS benefit. Here are three strategies.

[00:00:41] The first strategy is salary sacrificing. This is the most common strategy of the three, but it's often misunderstood. It's a great way to reduce the amount of tax you pay on your tax contributions. How it works is you can choose to pay a 15% tax on your assessed contributions, instead of paying tax that you would normally pay with your employer, which could be around 39%.

[00:01:09] The second strategy is catching up on your points. If you've fallen behind on your stash points, there are ways you can catch up. To maximize your employer's contribution. Ideally, you can contribute an average of 6% per year over the lifetime of your membership. If you've been contributing less than 6% over your membership, you can still catch up with those points. If you increase your contributions to 9%, you'll pick up the six points on offer as well as the three you've left behind.

[00:01:42] The third strategy is maximizing your final average salary. Your employees contributions are based on your final average salary. They take the salary at exit. They look back at 31st December and the year prior, and they average those three salaries. That salary will determine what your employer will contribute to your benefit. Your super full salary includes your base salary. It includes some allowances and it also includes a shift loading for shift workers. The right strategy for you depends on your individual circumstances and your retirement goals. Ultimately, the more you contribute to SS and the higher your final average salary, the more you'll get out of your SASS benefits. Increasing your personal contributions is likely to have the potential to increase the benefit you receive and improve your quality of retirement. Before you make any decisions about your SASS contributions.

[00:02:34] It's a good idea to seek professional advice from an expert, and a super financial planner can assess your personal circumstances and help decide what's right for you in the long term. To book an obligation free appointment, call us on 1800 620 305.

¹ Financial advice services are provided by Aware Financial Services Australia Limited (ABN 86 003 742 756, AFSL 238430), wholly owned by Aware Super.

Speaker 1 [00:00:05] When people come to see me, by far the biggest concern they have is will my money last? That's because most people overlook the sources of income available to them in retirement. Getting clear on what income you need in retirement and where that income will come from, is key to achieving peace of mind.

[00:00:27] When it comes to your retirement income, there's four key areas. Your superannuation. The age pension. Income from investments and drawing down on capital. The make up of that income very much depends on your circumstances. The key is making sure your income works as hard as possible for you. Let's look at each of these areas.

[00:00:53] As a SASS member, your scheme provides good prospects for a comfortable retirement. Ideally, you should look to maximize your 180 accrued benefit points. There are a number of ways you can do this. It all depends on your circumstances. Secondly, you may qualify for part or full age pension from the government. How much you'll get depends on your sources of income as well as your assets. If you don't qualify for an age pension, you may still be able to access a health care card and the benefits that come with it.

[00:01:33] Thirdly, you might have income from investments. This could include rent from investment properties, dividends from shares, and interest on deposits. Bear in mind the income you receive from investments is likely to fluctuate. You can also access income through capital drawdown. Capital drawdown is having access to that large amount of money, for example, you could sell your investment property or you could sell some shares. You could also access large amounts of money from your superannuation. Capital drawdown can be used to fund one-off capital expenditures, such as medical emergencies. Bear in mind the less you dip into your money now, the more you'll have for the future. As always, the right strategy for you depends on your individual circumstances.

[00:02:25] Getting financial advice that's tailored to your circumstances is best to ensure you make decisions that are right for you.

Financial advice services are provided by Aware Financial Services Australia Limited (ABN 86 003 742 756, AFSL 238430), wholly owned by Aware Super.

Speaker 1 [00:00:05] When it comes to retirement planning, there's a lot more to it than just money. In fact, one of the first pieces of advice I give clients is to get clear on what retirement looks like for them. Over the years, I've seen what really makes a difference to how happy someone is in retirement. Here are some tips to help you.

[00:00:28] My first tip is to explore new hobbies. Hobbies are a great way to stay engaged, keep active, and learn new skills. To find out what's happening in your local area, you can jump online or check out your local newspaper.

[00:00:46] My second tip is to surround yourself with loved ones. As a human being, we crave interaction. Staying connected to those around us is essential to remaining happy and healthy. Things like reconnecting with friends and visiting family are great ways to do this.

[00:01:07] My next tip is to keep learning. If you've ever been interested in an area of study, retirement could be the time to pursue it. Undertaking study can bring new meaning and purpose. Thanks to online technology, there's plenty of options no matter where you live.

[00:01:21] Two good places to start are your local TAFE and Adult Learning Australia.

[00:01:31] My final tip is to assess where you want to live and ensure it's right for you in the long term. Your formula for a happy retirement very much depends on what you'd like to do. It's not easy and there's a lot of factors to think about. Talking to an expert can help you think about the things you may have missed.

Financial advice services are provided by Aware Financial Services Australia Limited (ABN 86 003 742 756, AFSL 238430), wholly owned by Aware Super.

Speaker 1 [00:00:05] A lot of SASS members think once they've retired, the hard work is done, when in fact retirement is when you need to be really vigilant about your money. That's because significant volatility can be devastating as you approach retirement. So how can you protect yourself whilst taking the highest possible return from your investments? Here's four things to consider.

[00:00:30] The first thing to consider is sequencing risk. Essentially, sequencing risk is a strategy for managing risk. The first few years of retirement is very important to assess. Remember, you could be moving your entire capital into the markets for the first time. It's important to separate out the first few years of spending. That money would normally be conservatively invested, because you cannot afford any losses on that money. You need it to fund your day to day living. Separate out your first few years of spending and invest it conservatively. Sequencing risk is quite complex, so it's important to seek expert advice.

[00:01:09] The second thing to consider is longevity risk. Put simply, longevity risk is the risk of outliving your money. It's possibly the biggest risk faced by retirees and one that causes a lot of sleepless nights. Striking the right balance between risk and reward is key to achieving financial security and your peace of mind. The third thing to consider is cash flow versus lump sum spending. How do you plan to spend your money and when you choose to access it could change the nature of your investment strategy. Identifying both your short and long term needs is an important step in understanding what strategy is right for you.

[00:01:55] The fourth thing to consider is your appetite for risk. Your appetite for risk is a level of risk you're prepared to take to achieve higher returns. One way I help SASS members identify their appetite for risk is by comparing where they're invested today to where they could be invested. This exercise is a great way to determine the right level of risk for them. Market volatility and risk is never far away, so it's crucial to stay disciplined and stick to your long term plan. Getting financial advice that's tailored to your circumstances is the best way to ensure you make decisions that are right for you.

Financial advice services are provided by Aware Financial Services Australia Limited (ABN 86 003 742 756, AFSL 238430), wholly owned by Aware Super.