Tips for Retirees

https://assets.boxdice.com.au/bpa/attachments/617/6ae/as_seen_on..._2.png?802b10bcf295e24ba687b539ce9617c3

Retired? Thinking of downsizing your property?

From July 1st 2018 retirees aged 65 and over are now able to invest up to $300,000 into their superannuation funds without any added effects to their current contribution and balance caps.

Have you ever thought about downsizing your property? By holding off until the dawn of the new financial year, there is research conducted by the actuaries Milliman show that those with a low super balance and a valuable home will now have the most to gain when downsizing. People can build their super without losing too much of their pension. Isn’t that amazing? With taper rates working out at $78 per $1,000 a year, having a return investment of 7.8% will leave you in the best position justifying the investment.

Pensioners aged 65 and over will see no income tax on any of this money. Based off a home-owning’s couple’s investment of $300,000 into the super paying average returns.

It is important to know that with the new scheme rolling out in the new financial year there are no strings attached or any hidden catches. Also as a couple, both parties are able to contribute any proceeds of the sale of the home.  Allowing the couple together to invest $600,000.

The government has lifted existing caps and restrictions from super contributions allowing pensioners to invest no matter how much is already in their accounts. 

This new downsizing scheme has proven to increase pensioner’s super contribution regardless of how much they currently have in their superannuation accounts. Under standard super contribution arrangements, the scheme is set in place to allow retirees to downsize and find a home suitable for their needs.