Just Starting Out (25-45 YEARS OF AGE)
60% OF FAMILIES WILL RUN OUT OF MONEY IN A YEAR WITHOUT THE MAIN EARNER
Yours will be thankful that you thought ahead.
Yours will be thankful that you thought ahead.
It’s a reality most of us find too uncomfortable to talk about. But making sure your family is financially protected — should the worst happen to you — will give your loved ones immeasurable relief, and let them focus on supporting each other instead of how they’ll pay the bills.
It can be affordable
With so many day-to-day costs to juggle, life insurance can easily get pushed to the bottom of your priority list. But it might not be as expensive as you think.
Consider the services you might want to access if you fall ill or experience an injury
Think about investing in insurance that gives you access to advice and guidance from some of the world’s best medical practitioners — so you can be confident you and your family will have the best possible advice.
“Life insurance is about empowering your family to spend precious time together and continue to enjoy the life you’d want them to live.”
PLAN FOR SIX MONTHS OFF WORK DUE TO ILLNESS OR ACCIDENT. SERIOUSLY
75% of Australians need a long recovery period at some time or another. Protect your most important asset — you.
You never know when life is going to change around you; that’s why it’s so important to protect the wealth you’re building. Insuring your health is always important, but it’s critical to insure your income at the same time — so you don’t compromise your lifestyle if you need some time off work to recover from illness or accident.
What can you do to insure your future?
Work out your insurance needs: we can help you with all your insurance options — including income protection to life insurance, TPD and critical illness.
Consider buying insurance within super: it’s tax effective to fund your premiums through super and can make the right cover more affordable.
Aim for the best: don’t skimp on protecting your assets or your wellbeing. We can provide access to a unique service that connects ill people to a network of leading specialists from around the globe.
“Insuring your income is as important as insuring your car or your health.”
YOU COULD BE A LOT BETTER OFF IF YOU INVEST IN SUPER NOT JUST YOUR MORTGAGE
It's never too early to save for your retirement — and it's tax effective.
A commonly asked question is… should you use any extra dollars to pay off your mortgage or invest in your super? The numbers tell a compelling story: concessional super contributions are taxed at a maximum rate of 15%, while home loan repayments are usually made from income that has been taxed at marginal rates of up to 49%16. This means many people could be a lot better off putting extra money into super.
What can you do to boost your super?
Get started today:if you’re under 49, you can contribute up to $30,000 p.a. of your pre-tax salary, wages or bonus into your super fund at the 15% tax rate. If you’re 49 or over you can contribute up to $35,000 p.a.15in the current financial year.
Talk to an expert:find out whether making extra contributions to super is the right strategy for you, how to do it and how much you should put into your super.
Talk to your employer about salary sacrifice:not all employers offer salary sacrifice and some have quite specific requirements.
“Many people could be a lot better off putting extra money into super”
WOMEN RETIRE WITH 40% LESS IN SUPER THAN MEN
Women tend to live longer and have less super. But with the right support women can make their super last as long as they do.
Women have even more reason to take control of their retirement savings than men — women typically retire with 40% less super as they take time out to care for children and their elderly parents, and often work part time. Almost half of women believe they are unprepared for retirement and will struggle to make ends meet or even afford basic living expenses in retirement.1
What can women do to save their retirement?
Consolidate and top up your super:simple changes to your super can make a big difference. Finding your lost super and consolidating your savings can help top you up
Grow your super and protect your income stream:women currently aged 65 on average live to 87 years of age2 so growing your super and having an income stream that you won’t outlive is important. We can help you grow your super and safeguard your income for life.
Maximise pre-tax contributions during higher income periods:additional contributions from your pre-tax salary or business income3before and after any work breaks or periods of part-time employment are taxed at only 15%.
“Taking action on super can help women overcome some of the financial obstacles they face and ensure a better retirement.”
Grow Your Wealth (46-55 YEARS OF AGE)
PLAN FOR SIX MONTHS OFF WORK DUE TO ILLNESS OR ACCIDENT. SERIOUSLY
75% of Australians need a long recovery period at some time or another. Protect your most important asset — you.
You never know when life is going to change around you; that’s why it’s so important to protect the wealth you’re building. Insuring your health is always important, but it’s critical to insure your income at the same time — so you don’t compromise your lifestyle if you need some time off work to recover from illness or accident.
What can you do to insure your future?
Work out your insurance needs: we can help you with all your insurance options — including income protection to life insurance, TPD and critical illness.
Consider buying insurance within super: it’s tax effective to fund your premiums through super and can make the right cover more affordable.
Aim for the best: don’t skimp on protecting your assets or your wellbeing. We can provide access to a unique service that connects ill people to a network of leading specialists from around the globe.
“Insuring your income is as important as insuring your car or your health.”
IN THE LAST 10 YEARS, THE COST OF ELECTRICITY HAS GONE UP 133%. THAT'S QUITE A SHOCKING STATISTIC.
Inflation is one of the biggest threats to your retirement. But it's easy to manage.
Inflation is the rise in the cost of living. The same electricity bill that cost you $100 in 1973 would now cost $295.24.8In 15 years’ time, keeping the lights on could cost $1,051.71 if inflation keeps rising at the same rate.
Over time, inflation reduces the purchasing power of your money, which means the same amount buys you less. It’s important to save now for a more expensive future, so you can plan ahead and make sure you’re free to do all the things you want to in retirement.
How can you manage inflation risk?
Choose an investment that targets above-inflation returns: we’re here to help with a portfolio that aims to deliver returns above inflation over defined time frames, regardless of what global markets are doing. That means you manage the risk of inflation and can plan for a smoother ride in retirement.
“Investing in a portfolio that targets returns above inflation can help you manage the risk of inflation.”
YOU MAY NEED A LUMP SUM OF $510,000 TO FUND A COMFORTABLE RETIREMENT
It’s not as daunting as it sounds. You can change your future today.
Retirement is a unique experience. It means different things to different people. Likewise, preparing for, transitioning to and enjoying retirement is an individual journey. No matter what stage you’re at, you need someone to walk beside you as you build a plan that will give you and your family the lifestyle you want in retirement.
What can you do to retire strong?
Build a robust portfolio: to build a lump sum you need a wide range of investments, and some of the world’s best investment managers. We can help.
Create and protect your income stream: make sure you don’t outlive your income — protect your capital and safeguard your income over 10 years, 20 years or for life.
Manage your risks: inflation, living longer, spending too much, market timing and poor planning can all threaten your retirement wealth. We can work with you on a plan to manage these risks.
Protect your future: insure your income as well as your assets with our help.
“We’re here to help you build a solid portfolio, grow your investments, create an income stream and protect your future.”
DON'T GET TRIPPED UP BY TAXES
There are some unique tax rules that affect super and retirement wealth. But there's a lot you can do to make your retirement wealth tax-efficient.
Tax can take a lot out of your retirement, so it’s vital to make sure you plan your finances tax-effectively when you’re preparing for or in retirement. There are a lot of specific tax rules to get your head around, but the good news is that with the right advice and the right investments, you can minimise your tax and have more left over to invest in your future.
What can you do to get the best tax outcome in retirement?
Depending on your circumstances, there are some strategies19that can help:
If you’re under 55 and still working: boost your super through salary sacrifice. It may be tax efficient and could mean that you can make a bigger after-tax investment for your retirement. If you’re self-employed you may be able to contribute to super and claim the contribution as a tax-deduction.
If you’re over 55 and still working: think about a transition to retirement strategy, where you work part time and contribute to super while drawing an income. You can do this through your super to grow your retirement savings without reducing your income.
If you’re 55-59 and retiring: use your super to start an income stream investment. There are considerable tax advantages if you don’t take your super as a cash lump sum.
If you’re 60 or over and retiring: use your super to start an income stream investment. No tax is payable on earnings, you can receive unlimited tax-free income stream payments and you don’t have to include the payments in your annual tax return.
“With the right advice and the right investments, you can minimise your tax and have more left over to invest in your future.”
Prepare To Retire (56-65 YEARS OF AGE)
IF YOU'RE UNDER 60 AND WITHDRAW YOUR SUPER LUMP SUM, THIS COULD COST YOU 17% OF ANY AMOUNT OVER $185,000
If you're under 60, there are better ways to move into retirement.
‘Maybe it’s time to transition to retirement.’
Retirement doesn’t need to be all or nothing — you can transition gradually and tax effectively if you’re over 55, using a transition to retirement or account-based pension. With the right approach you can keep working, but still have time and resources to pursue your retirement dreams.
How can you transition to retirement effectively?
Consider a transition to retirement pension: this could provide a tax- effective income to replace your reduced salary if you plan to scale back your working hours. You can also use the income generated to make additional super contributions very tax effectively.
Open an account-based pension: this approach could provide you with a tax-effective income to meet your living expenses when you retire.
“A transition to retirement pension helps over 55s put more into super — so you can keep building wealth even if your working hours reduce.”
YOU MAY NEED A LUMP SUM OF $510,000 TO FUND A COMFORTABLE RETIREMENT
It’s not as daunting as it sounds. You can change your future today.
Retirement is a unique experience. It means different things to different people. Likewise, preparing for, transitioning to and enjoying retirement is an individual journey. No matter what stage you’re at, you need someone to walk beside you as you build a plan that will give you and your family the lifestyle you want in retirement.
What can you do to retire strong?
Build a robust portfolio: to build a lump sum you need a wide range of investments, and some of the world’s best investment managers. We can help.
Create and protect your income stream: make sure you don’t outlive your income — protect your capital and safeguard your income over 10 years, 20 years or for life.
Manage your risks: inflation, living longer, spending too much, market timing and poor planning can all threaten your retirement wealth. We can work with you on a plan to manage these risks.
Protect your future: insure your income as well as your assets with our help.
“We’re here to help you build a solid portfolio, grow your investments, create an income stream and protect your future.”
WANT TO KNOW HOW MUCH INCOME YOU'LL NEED EACH WEEK TO LIVE A COMFORTABLE RETIREMENT?
A couple needs $1,114.78 per week to live well in retirement.10 That's achievable if you plan properly.
A secure retirement isn’t all about a lump sum. A great approach to retirement is to think about the income you need to support the lifestyle you want to maintain and how you’ll generate that income. But don’t forget to think about how to protect the income you generate from risks like inflation.
What can you do to generate an income for retirement?
Convert your super into a tax-effective income: a transition to retirement pension can give you a tax-effective income to replace your reduced salary if you plan to scale back your working hours. Once you’ve retired, an account-based pension will deliver a tax-effective income to meet your living expenses.
Protect your income: you can protect your capital and safeguard your income over 10 years, 20 years or for life. This means you’ll have a secure retirement income, the opportunity for income growth, protection if the market falls and upside if it rises.
“Generating the right level of income — and protecting that income stream – is one of the most important parts of retirement planning.”
YOU HAVE A 50% CHANCE OF OUTLIVING YOUR RETIREMENT SAVINGS BY 13 YEARS.
Living longer is a great thing if you have the right plan to manage your financial future.
The first question most people ask when they’re thinking about retirement is, how long should I plan to be in retirement? The answer may surprise you. There’s a good chance you’ll spend 30 years in retirement, and many people aren’t financially prepared. This is called longevity risk – and it needs to be managed.
How can you prepare for a long, happy and financially secure retirement?
Understand what you’ll need: with the help of your MLC financial adviser, map out the lump sum and income you’ll need to enjoy the retirement you want.
Protect your income for life: you can safeguard your income over 10 years, 20 years or for life. This means you’ll have a guaranteed retirement income, so you won’t have to worry about living longer than expected.
“You can safeguard your income, so if you live longer than expected you’re still in a position to enjoy your retirement.”
Retire in Comfort (65+ YEARS OF AGE)
1995 WAS A GREAT YEAR TO RETIRE. BUT RETIRING IN 1994 COULD HAVE REALLY SET BACK YOUR RETIREMENT SAVINGS
You can protect your retirement savings no matter when you retire.
Markets go up and down, so returns are sometimes positive and sometimes negative. While you’re building your wealth this doesn’t matter too much, as the good times can make up for the bad times over the long term. But in retirement, the timing of market returns is crucial to how long your income lasts. This is called sequencing risk.
If there’s a market downturn just before or just after you retire and your investments lose value, there’s less time for them to recover. So it’s important to manage sequencing risk.
What can you do about sequencing risk?
Think about capital protection: exposure to growth assets combined with capital protection of your portfolio is more likely to generate the long-term returns you need, without worrying about negative returns.
Think about income protection: you can protect your income payments to ensure that your income is paid over a 10- or 20-year period, or for the rest of your life, regardless of when you retire, how long you live and how markets perform.
“Low or negative returns in the early years of retirement can increase the possibility that your money runs out prematurely. But you can protect your capital and income, and your retirement lifestyle.”
60% OF OUR RETIREMENT INCOME (ON AVERAGE) IS GENERATED AFTER WE RETIRE.
So 'keeping active' is important in more ways than one.
What will it cost you to live the way you want after retirement? That’s a question everyone planning for or in retirement needs to think about. If you already own your own home you may need as a couple around $1120 per week to live a comfortable lifestyle – that’s just over $58,000 per year.5The basic rate of Age Pension pays around $644 for a couple per week6— that’s $471 short per week for a comfortable retirement.
How can you boost your retirement income?
If you’re investing in shares, choose companies with an income focus: you can invest in a portfolio of companies that generally pay out part of their profits as dividends. These are usually large, growing companies — often household names. So the value of your shares is likely to grow over the long term, and you’ll also receive income to support your day-to-day expenses.
Build and protect your retirement stream: you can grow and protect your income for life. This means you’ll have a reliable minimum income, exposure to growth assets and protection if the market falls.
“Investing for retirement isn’t just about choosing an investment that will increase in value over time. It’s also about making sure your investment pays you a regular income, so you can enjoy your retirement.”
WANT TO KNOW HOW MUCH INCOME YOU'LL NEED EACH WEEK TO LIVE A COMFORTABLE RETIREMENT?
A couple needs $1,114.78 per week to live well in retirement.10 That's achievable if you plan properly.
A secure retirement isn’t all about a lump sum. A great approach to retirement is to think about the income you need to support the lifestyle you want to maintain and how you’ll generate that income. But don’t forget to think about how to protect the income you generate from risks like inflation.
What can you do to generate an income for retirement?
Convert your super into a tax-effective income: a transition to retirement pension can give you a tax-effective income to replace your reduced salary if you plan to scale back your working hours. Once you’ve retired, an account-based pension will deliver a tax-effective income to meet your living expenses.
Protect your income: you can protect your capital and safeguard your income over 10 years, 20 years or for life. This means you’ll have a secure retirement income, the opportunity for income growth, protection if the market falls and upside if it rises.
“Generating the right level of income — and protecting that income stream – is one of the most important parts of retirement planning.”
YOU HAVE A 50% CHANCE OF OUTLIVING YOUR RETIREMENT SAVINGS BY 13 YEARS.
Living longer is a great thing if you have the right plan to manage your financial future.
The first question most people ask when they’re thinking about retirement is, how long should I plan to be in retirement? The answer may surprise you. There’s a good chance you’ll spend 30 years in retirement, and many people aren’t financially prepared. This is called longevity risk – and it needs to be managed.
How can you prepare for a long, happy and financially secure retirement?
Understand what you’ll need: with the help of your financial adviser, map out the lump sum and income you’ll need to enjoy the retirement you want.
Protect your income for life: you can safeguard your income over 10 years, 20 years or for life. This means you’ll have a guaranteed retirement income, so you won’t have to worry about living longer than expected.
“You can safeguard your income, so if you live longer than expected you’re still in a position to enjoy your retirement.”
THE AVERAGE AUSTRALIAN CARRIES $50,000 IN DEBT WHEN THEY RETIRE.
But you can make sure you have the income to cover your debt.V
While retirement is supposed to be all about realising your dreams, many retirees still have debts to pay. If you’re not going to take a lump sum out of super to pay off your debts, it’s so important to make sure you’re invested for capital growth and that you’re generating an income that can cover your expenses and your debt.
How can you pay your debts and increase certainty?
Think about protecting your lump sum super savings: exposure to growth assets combined with capital protection of your portfolio is more likely to generate the long-term returns you need, without worrying about negative returns.
Grow and protect your retirement income stream: you can grow and protect your income for life. This means you’ll have a reliable minimum income, exposure to growth assets and protection if the market falls.