Self –Funded Retiree

A self funded retiree supports their own retirement without the assistance of the Australian government pension.  There are some rewards for managing your own self funded superannuation.  These include:

  • Tax bonuses and relief from new laws
  • More control over your investments
  • Greater security

The Australian government looks favourably upon a self funded retiree because it relieves pressure on the pension system.  That does not mean there are not benefits that a self funded retiree can partake from the government.  In fact, many times there are additional benefits to support the self funded retiree.

New Updates to Self Funded Superannuation Australia

In response to the global recession, the Australian government continues to provide taxation relief to lessen self funded retirees tax.  For example, in 2007-08, a Tax Bonus was issued to self funded retirees who met certain qualifications.  Likewise, superannuation paid from taxed sources are tax free for those over the age of 60.  The Australian government continues to push for greater relief for seniors, and further updates are expected.

Clearing up Confusion about Self Funded Retirees Tax

There are many aspects of being a self funded retiree that cause confusion.  Common questions include:

  • When is the best time to retire?
  • When must I begin withdrawing my retirement savings?
  • Are there any penalties for withdrawing early?
  • When do I pay taxes on the earnings?
  • Am I eligible for any tax offsets?
  • Can I continue working as a self funded retiree?
  • How much am I allowed to earn if I choose to work?
  • Can I contribute using salary sacrifice arrangements with my employer?

There are no single one-size-fits-all answers.  In order to gather an accurate picture of how your unique retirement should be handled, you will need to sit down with a tax professional.

Remember, the cost of an accountant is typically tax deductible.  Retirement planning is not just for those already retired.  By planning important retirement decisions sooner, your accountant can actually end up returning significantly more money than the fee you pay.  That is why you should contact Tim Nash & Associates to assist with your self funded retiree planning.

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