Your individual financial and personal situation will have an impact on your retirement decisions. Ideally, you (primarily through employment) will have contributed to a superannuation fund. However this may not always have been possible – for reasons such as long periods of unemployment, illness or disability, or because of time spent out of the workforce caring for a family member. In recognition of this, governments provide income support, through pensions, and a range of other assistance, including State Government concessions for seniors within certain eligibility criteria.
If you are still working, it is important to consider your financial situation well before you make the decision to reduce your working hours or retire. If you reduce your working hours or days, make sure you find out what impact this will have on your superannuation, pension or concessions.
If you have contributed to a superannuation fund, find out how much superannuation you will have upon retirement. This will assist you to make plans about how you use that money. Your superannuation fund should be providing you with regular information about your superannuation benefits. If you do not understand your entitlements, contact your superannuation fund or talk to a financial planner. A financial planner will work out whether you will have enough income to fulfil your retirement plans.
If you have had a number of jobs and have lost track of your superannuation, you may be able to find your unclaimed superannuation money by going to the Australian Taxation Office website and using the SuperSeeker online search tool. Go to www.ato.gov.au
^top
The Government Employees Superannuation Board (GESB) is the superannuation fund for employees, and former employees of the Western Australian Government departments, authorities and enterprises. Members can obtain information about their superannuation by calling the Member Service Centre on 13 43 72 or go to www.gesb.wa.gov.au. GESB offers free seminars to help members plan for their retirement.
The Association of Superannuation Funds of Australia has more than 500 members and its website has a range of information to help you understand superannuation. The website features a Super Smart Planner to help you calculate your retirement income. Go to www.superannuation.asn.au.
Developing a financial plan to best use retirement savings and/or superannuation can be complicated. Many people seek the expertise of a licensed financial planner/adviser who can help to:
- identify your financial goals;
- identify your current and future financial situation;
- develop a plan to fund or partially fund your retirement; and
- get the best out of your superannuation, lump sum payments or inheritances.
The earlier you develop a financial plan the easier it will be to achieve your financial goals.
Before selecting your financial planner or adviser, it is important to:
- check that the financial planner is licensed with the Financial Planning Association;
- ask what qualifications and experience they have;
- discuss what the financial plan will cover;
- ask what the fees will be and what they are based on (such as commissions or sale of products) and what the fees will cover;
- check if there will be an expectation to purchase other products from the company;
- find out if you will be liaising with just one person and who that will be and ensure that you are comfortable with discussing your financial situation with that person;
- ask how much you will be involved in the development of your financial plan; and
- find out what happens if you want to update or review your plan and what costs will be involved.
A financial planner will look at your financial situation and provide advice about how to improve matters by taking into account your income, goals and views about investment strategies. To assist this process you will need to provide details about your income, assets, debts and financial commitments.
Before you see a financial planner it is useful to:
- work out your weekly or monthly expenditure;
- work out your total annual income (salary or wages, incoming rent, interest etc);
- think about what other major expenses or income that may be imminent;
- get together information about your superannuation; and
- reach agreement with your partner about what you intend to do during your retirement such as travel, move house, buy a caravan, start a small business, etc.
If you haven’t used a financial planner before, ask your friends and colleagues what their experiences have been. The Financial Planning Association (FPA) can provide a list of its members in your area. Banks, credit societies, life insurance companies, fund managers and accountants may also provide financial advisory services. Check if the financial planner is a member of the FPA by calling 1800 626 393 or go to www.fpa.asn.au for further information.
The Australian Securities and Investment Commission (ASIC) is the consumer protection regulator for financial services. ASIC regulates and enforces laws that promote honesty and fairness in financial products and services, in financial markets and in Australian companies. Any business selling or advising you about financial products and services must hold an ASIC licence or be authorised to represent a licence holder. You can check licence details on www.fido.asic.gov.au or call 1300 300 630. To help you choose a financial planner and check your financial plan, ASIC has published Don’t kiss your money goodbye. Download from www.fido.asic.gov.au or call ASIC.
Contact the Financial Industry Complaints Service on 1800 335 405 if you have a complaint about a financial adviser.
^top
At retirement you may be eligible to receive the Australian Government Age Pension and the associated pensioner concessions. It is important to contact Centrelink to obtain information about eligibility and benefits that match your circumstances. Call 13 23 00 to make an appointment with a Centrelink officer or go to www.seniors.gov.au or www.centrelink.gov.au.
Veterans may also be eligible for a Service Pension and associated benefits. Contact the Department of Veterans Affairs on 13 32 54 for further information or go to www.dva.gov.au
^top
The Western Australian Government Seniors Card is available to eligible people aged 60 years and older to assist them to access a range of government concessions and discounts on private sector products and services. It is estimated that the Seniors Card saves households approximately $1,500 per annum though concessions on State Government services such as public transport, electricity and gas rebate, and drivers licence. A number of private businesses also provide discounts for Seniors Card members.
For further information about eligibility and the concessions available, visit the Seniors Card website at www.seniorscard.wa.gov.au or call the Seniors Information Telephone Service on 6217 8855 or 1800 671 233 for country callers.
^top
A list of discounts and State Government concessions are contained in the Western Australian Seniors Card Discount Directory.
The Directory is mailed to Seniors Card members every two years or you can search online for the latest discounts at www.seniorscard.wa.gov.au
^top