In this series, you’ll get tips and expert insights to guide you, so that you’re ready to leave SASS with confidence in your plans.
Here are the highlights:
In this step, you'll learn about:
It’s possible that you’ve been in SASS for up to 30+ years and now it’s time to make one of your most important financial decisions.
Once you’ve met the requirements to have your SASS benefit paid, what are your options for exiting SASS?
An Aware Super financial planner1 can help you navigate your SASS exit. They can take you through your options and help you decide what’s right for you.
Getting comfortable with the exit process
Once you’re clear and confident about what you’re going to do with your final benefit, you’re ready to go through the exit process. Do you know the steps involved?
Here’s a simple checklist, with three key steps:
Things to consider before you exit SASS
Before you leave, here’s a list of important questions to ask yourself:
For more help on deciding whether to take a lump sum or roll over your SASS, reviewing your investment mix for super, or setting up an income stream for retirement, you can attend a SASS seminar or make an appointment with an Aware Super planner.
1 Financial advice services are provided by Aware Financial Services Australia Limited (ABN 86 003 742 756, AFSL 238430), wholly owned by Aware Super.
An exit checklist for SASS members
Use this step-by-step checklist to make sure you’ve done your due diligence before you exit the scheme.
In this step, you'll learn about:
It’s like the super you already know, but a bit different. Find out how the retirement phase of super works - and how it can work for you.
Speaker 1 [00:00:00] Once you've finished work or have chosen to retire, it's time to decide what to do with your SASS benefit. If you meet a condition of release, one option is to stay within super by rolling over your money into the retirement phase with another super fund. Many SASS members do this so that they can use an account based pension to pay themselves a regular income in retirement with an account based pension. You get to choose how your money is invested when you receive your payments, and how much you want to receive, provided you meet the minimum annual withdrawal amounts set by the government. The balance of your money remains invested so that it can keep on growing. Having a regular income can help you stick to a budget and stay on track with your retirement plan, but it's flexible, too.
[00:00:59] If you need to access part of your balance or the entire account, you can withdraw it at any time. Just remember, the more you withdraw, the sooner your money will run out. Another benefit of the retirement phase is the potential tax savings. You pay 0% tax on the income you earn on your super. Once you're over 60, you won't pay any tax on the amount you withdraw either as a lump sum or as regular income. While there are benefits to rolling your super into the retirement phase, there are some limitations to be aware of. After you set up an account based pension, you can't add to it. So if you want to add more, you'll need to either set up a separate account based pension or roll back your first account based pension to the accumulation phase. Add to it within the contribution limits and then start a new one. You could also leave your money in the accumulation phase. In the accumulation phase. Up to 50% tax is paid from the income on your super. This tax is paid directly by your super fund and the details are included on your annual statement.
[00:02:22] While many super funds offer a transition to retirement income product that allows you to draw down from your super whilst you're still working, this isn't a feature of the SASS scheme, so bear in mind that once you take your money out of cess, you have to remove it all. Deciding what to do with your money when you retire is a big deal. The good news is aware super planners are experts in cess. To book an appointment with an Aware super planner. Visit the Aware Super website or call us on 1800 620 305. Today.
If you like the sound of a regular income in retirement and want to explore your options, what features should you be looking for?
Ease of withdrawals
Look for something that offers you the flexibility to withdraw your money when you need to. With an account-based pension for example, you can access your cash whenever you need.
Minimum investment amount
Make sure to check the minimum investment required to set up an income stream. With an account-based pension, there’s usually a minimum deposit required, but you decide what payments you receive, and when.
Clear fee structure
When shopping around for any financial product, you should be looking for fees that are clear and easy to understand. If it’s not clear how much you’ll be paying in fees, you could be paying more than you expect.
Product ownership
Do your research to make sure the provider offering you the product is financially stable and trustworthy.
Like all big financial decisions, it’s important to assess which option best suits your lifestyle and aspirations in retirement. If you need help deciding what to do with your SASS benefit, an Aware Super planner1 can review your personal circumstances, talk you through each option and help you make an informed decision.
Setting up an account-based pension
When setting up an account-based pension, there are a few decisions you need to make. This simple checklist covers what you need to consider as you move through the set-up process.
In this step, you'll learn about:
You’ve worked hard to build your savings, so in retirement you’ll want to make sure you’re doing what you can to help protect it.
A sound investment strategy can make all the difference. If you’re planning to manage your own investments in retirement, you’ll need to know enough about investing to:
So, what does it take to manage your money in retirement?
Our experts name the top five skills you’ll need:
1. Assess your tolerance to risk
Investing for retirement comes with risk. That’s because it’s much harder to recover losses when you’re drawing down on your money and you can’t wait for markets to recover. In retirement, four of the key financial risks you’ll face are:
When you take on the task to manage your own money in retirement, you’ll need to understand how much risk you’re exposed to – and how much risk you’re comfortable taking. Managing your risk in a way that balances growth with a level of security and stability you need can help you sleep easy at night.
2. Diversify your investments
Spreading your money across different asset classes (such as shares, fixed income and property) and different investments within each asset class is crucial to reduce the risk that your investments lose value at the same time. By diversifying your investments, you’ll increase the chances of a better overall return and therefore a better financial position in retirement. As the value of your assets move up and down, it’s important to re-balance your portfolio regularly to manage your exposure to the different asset classes.
3. Monitor the markets
When you’re managing your money in retirement, you’ll need to keep an active eye on movements in the markets to ensure you’re optimising the performance of your investment portfolio. In retirement, "time in the market" and "timing the market" will influence your success.
4. Navigate your behavioural bias
As humans, we’re wired to veer on the safe side. A body of research1 called ‘The loss aversion theory’ suggests we feel twice as much pain from a loss than the pleasure we feel from the same amount of gain. When it comes to investing, it can mean we miss out on opportunities for gains by settling for a lower rate of return than we need to. While biases such as these keep us feeling safe in the short term, playing it too safe over the longer term could see your retirement savings fall short.
5. Manage a budget for the next 30 years
As you get older, you’ll spend your money on different things. Adapting your budget for each stage of retirement and ensuring you have enough money for now and for later will need to be one of your core skills.
Managing your money in retirement can be rewarding, but it also takes time, vigilance and skill. If that sounds like a lot to handle, an Aware Super financial planner can help keep your finances on track.
They’ll help you make decisions by giving you the pros and cons of each option as well as saving you time and energy. They can be your personal financial coach for your retirement, and knowing how retirement plans can change, they can adapt your plan for any unforeseen events.
Our retirement planning experts have helped thousands of SASS members successfully prepare for retirement. To talk through your personal circumstances and options, book an obligation-free appointment.
1 Financial advice services are provided by Aware Financial Services Australia Limited (ABN 86 003 742 756, AFSL 238430), wholly owned by Aware Super.
An account-based pension keeps your super invested during your retirement. This turns it into a regular income to help fund your retirement lifestyle. Discover the benefits of being invested in super in retirement.
Peter Hogg:
So now that we know more about income accounts, let's look at the benefits of staying invested because if you keep your money invested, it could mean you have more income to enjoy in retirement. In this example, you can see the difference between withdrawing super and investing your money in a bank account compared to leaving your money in super and receiving it as an income. Staying invested in super means you could have over $5,000 more over time. This could make a big difference to the amount you have to spend in retirement. Knowing how much super enough and how much is you'll need to retire can take some time to figure out. Everybody's needs in retirement will be different, but there's one thing we all have in common: the sooner we start planning, the better. To make sure you're on the right track, make an appointment with one of our experts for no extra cost.
Check your skills as an investor
Do you have what it takes to manage your own investments in retirement? Take this short quiz.
In this step, you'll learn about:
When you seek one-off advice from a financial planner, such as on your tax, super or investments, this advice will be for one point in time. After that, it’s up to you to make sure you stay on track with your plan - both now and in the future.
Ongoing advice means you’re checking in on a regular basis with an expert who’ll review how your strategies are performing. As your circumstances or goals change, your financial planner makes the necessary adjustments to keep you heading in the right direction.
Check out the top five reasons why SASS members value ongoing advice with their planner:
'I can sleep easy at night, knowing there’s a plan.’
Whether you’re planning your retirement, or already retired, keeping an eye on issues such as financial markets, the local and global economy, and policy movements can be stressful. With a planner by your side, you don’t need to constantly look over your shoulder. They’ll work closely with you to develop a long-term plan based on your financial and lifestyle goals, which also considers your tolerance for risk. You can rest easy knowing your planner reviews your plan along the way, and can help you make adjustments if things change down the track.
‘My planner keeps me up to date with the latest super rules.’
The rules around super are complex and change on a regular basis. Without knowing about these changes, or their impact on your savings, you may be missing out on opportunities, or putting yourself in a vulnerable position. Your planner knows the ins and outs of these complex super rules.
‘My planner helps me review and adjust my investments to ensure my plan is on track.’
Investing is complex, especially when you’re approaching or in the early stages of retirement. As the markets or your circumstances change, your planner will review whether you need to change your investment choice or re-balance your portfolio, keeping you informed and in control.
‘They’ll advise me on how to invest and minimise my tax bill.’
Your planner can help you structure your super contributions and investments to reduce your tax and keep more money in your pocket. That’s because a planner understands tax laws and how to make them work for you. In some cases, your planner will also work closely with other advisers, such as your accountant, to ensure all your bases are covered.
‘They’ll help me plan ahead for my family.’
Many SASS members are surprised at all the factors that need to be considered when planning financial protection for themselves and their families. Having an expert help you get your estate planning and insurance in order means your loved ones will be protected should the worst happen. And, when it’s time, you can be confident that your money and assets will end up in the right hands.
At 60, Brian wanted to set himself up for the best possible retirement, so he decided to seek financial advice. He made an appointment with Tony, an Aware Super planner.1
Tony worked with Brian to estimate his retirement income needs and determine the sources of that income. Tony also helped Brian to determine how much he’d need to save in the lead up to his retirement.
With Tony’s advice, Brian maximised his employer-financed benefit, set up salary sacrifice, and topped up his super with voluntary contributions. Brian retired at 63 knowing that he could afford the life he wanted in retirement.
After leaving work, Brian found that retirement was quite an adjustment in terms of his lifestyle and finances. He made the decision to continue to partner with Tony for ongoing advice to:
If you want to get professional financial advice like Brian, book an appointment.
1 Financial advice services are provided by Aware Financial Services Australia Limited (ABN 86 003 742 756, AFSL 238430), wholly owned by Aware Super.
Seeking advice from an Aware Super financial planner1 had a big impact on Michelle and Geoff’s retirement. Watch their story.
Speaker 1 [00:00:04] Well, I wasn't actually thinking about retirement until Michelle got cancer.
Speaker 2 [00:00:09] Both of us just thought, well, now's the time we've been putting away for our future. And all of a sudden, the future was here. I've got three daughters. They encouraged me to to not go back to work. They thought that of, you know, 40 years of working was enough, mom, and now you're not well, just get better for us.
Speaker 1 [00:00:30] We went up to see our planner. And she drew some pictures on a whiteboard, showed us with little arrows what money was doing, how it was working, and put the plan into a picture that we could understand, so that we could concentrate on getting Michelle well and leading the next part of our life. Fortunately, her health's got better, and now that her health is better, she's got more time to be able to give back to the community. And that's really important to us. In our working lives, we worked for people, schools, communities. And now in our retirement life, our work is around volunteering, to help people who are part of those communities.
Speaker 2 [00:01:12] The thing that I love about our lifestyle at the moment is that we now have all of the time that we never had to put into our family. We actually have been to more assemblies for our grandson than we actually went for our own children because we can.
Speaker 1 [00:01:30] It's true. We can.
[00:01:33] All of the advice that we've been given, the strategies we take around managing our finances, make our life oh, fantastic. And we're very confident and very happy and very knowing now about how our money's working for us. And, we thibk the future's pretty good.
1 Financial advice services are provided by Aware Financial Services Australia Limited (ABN 86 003 742 756, AFSL 238430), wholly owned by Aware Super.
Preparing for your first appointment
This is the first step in getting to know each other - and being prepared is key. Get the checklist for a simple guide on what you’ll need to get ready.
SASS seminars are a great way to learn about your scheme and ask the questions that matter to you.
