Superannuation/Salary Sacrifice

[Billy ray]

is there a list somewhere of all the things you can use for taking out super early (subject to compasionate grounds or any grounds)?

 

[Teagueeee15]

is there a list somewhere of all the things you can use for taking out super early (subject to compasionate grounds or any grounds)?

Do you mean a list of conditions of release? You should be able to do a google search for conditions of release along with your super fund name and get a list and processes for activating them.

 

[ash_1050]

is there a list somewhere of all the things you can use for taking out super early (subject to compasionate grounds or any grounds)?

Here's a decent list.

 

[Billy ray]

A question
If at retirement age when i get access to my super i need to essentially use say 80% of it to clear my mortgage, and the remaining say 20% to renovate and do maintenance, meaning i then have zero super (but a fully paid off home) - am i likely to receive a full pension as my super is gone?

 

[Nothing]

A question
If at retirement age when i get access to my super i need to essentially use say 80% of it to clear my mortgage, and the remaining say 20% to renovate and do maintenance, meaning i then have zero super (but a fully paid off home) - am i likely to receive a full pension as my super is gone?

Depends on your other assets. As a couple (?) you get full pension if you have less than ~$5K in income and ~$400K in assets.

 

[Billy ray]

Depends on your other assets. As a couple (?) you get full pension if you have less than ~$5K in income and ~$400K in assets.

Yeh of course.
Thinking if my projected super = projected remaining loan balance at same date + allowable cash allowed, ill run some numbers and see if i could switch to minimum repayments on my loan or even interest only for a period, help my cashflow now, and forget the stress

 

[Lunchtime]

A question
If at retirement age when i get access to my super i need to essentially use say 80% of it to clear my mortgage, and the remaining say 20% to renovate and do maintenance, meaning i then have zero super (but a fully paid off home) - am i likely to receive a full pension as my super is gone?

You'd be means assessed - how much money in your bank account (s), super, other assets such as properties, shares etc....all of this will determine if you're eligible for the Aged Pension.

 

[Billy ray]

You'd be means assessed - how much money in your bank account (s), super, other assets such as properties, shares etc....all of this will determine if you're eligible for the Aged Pension.

Cheers
I know i have zero chance of paying off mortgage before i retire (other than an inheritance in meantime which i am not expecting), but maybe it doesnt matter. I am quite far ahead in my super balance compared with averages i have seen. But have zero other assets. No shares, nothing else.

 

[Lunchtime]

Cheers
I know i have zero chance of paying off mortgage before i retire (other than an inheritance in meantime which i am not expecting), but maybe it doesnt matter. I am quite far ahead in my super balance compared with averages i have seen. But have zero other assets. No shares, nothing else.

Yeah super is good. It grows quickly over a long period of time.

 

[sabre_ac]

Cheers
I know i have zero chance of paying off mortgage before i retire (other than an inheritance in meantime which i am not expecting), but maybe it doesnt matter. I am quite far ahead in my super balance compared with averages i have seen. But have zero other assets. No shares, nothing else.

A lot of people go into retirement with a mortgage, and considering the size of mortgages people are taking out at the moment, having a mortgage at retirement may be quite common going forward.

In my opinion, it's always better to have a healthy super balance + mortgage as opposed to a paid-off house and minimal super; there is a balance, though.

Also, analysis depends on your time to retirement; if you have decades until retirement, inflation may come to the rescue for those carrying massive mortgages early into their working lives.

 

[Anzacpaul]

Cheers
I know i have zero chance of paying off mortgage before i retire (other than an inheritance in meantime which i am not expecting), but maybe it doesnt matter. I am quite far ahead in my super balance compared with averages i have seen. But have zero other assets. No shares, nothing else.

Could you look at downsizing upon retirement? Not sure on your situation, but 80% remaining on a mortgage at retirement is massive.

 

[Happy Mastenator]

Could you look at downsizing upon retirement? Not sure on your situation, but 80% remaining on a mortgage at retirement is massive.

A good move if short of retirement funds and have a large house with a mortgage, is to consider downsizing, banking cash, and having a more manageable/less costly house/apartment.

If you have enough equity when you can use the downsizer contribution to get $300k per spouse into your super if you do so.

I understand downsizing isn't for everyone, but if it makes sense lifestyle wise it can be beneficial.

 

[raskolnikov]

I have a friend who retired last year. Owns his home which is worth at least a million. Also has close to a million in super. But ever since he has retired he hasn't stopped complaining that he can't get the pension. No matter how much I explain he just can't get it in his head that he doesn't need it because he is self-funded. He's probably in the first generation that the pension hasn't been guaranteed and just can't grasp it.

 

[Nothing]

I have a friend who retired last year. Owns his home which is worth at least a million. Also has close to a million in super. But ever since he has retired he hasn't stopped complaining that he can't get the pension. No matter how much I explain he just can't get it in his head that he doesn't need it because he is self-funded. He's probably in the first generation that the pension hasn't been guaranteed and just can't grasp it.

If he spends his money quickly, then he will be eligible for the aged pension (assuming he is over 67). Need to spend about $400K to get under the asset limit and get some pension. If he would like help spending that, I could get him the pension this year (assuming the hookers and blow don't kill him).

Or he can look into the Commonwealth Seniors Health Card.

 

[Lunchtime]

I have a friend who retired last year. Owns his home which is worth at least a million. Also has close to a million in super. But ever since he has retired he hasn't stopped complaining that he can't get the pension. No matter how much I explain he just can't get it in his head that he doesn't need it because he is self-funded. He's probably in the first generation that the pension hasn't been guaranteed and just can't grasp it.

He has too much money/assets. He doesn't need the pension. He can get it when it's all spent.