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Choosing an age to retire

As waves of baby-boomers now reaching what was once a popular retirement age, as well as the rapid ageing of the population, the topic of retirement intentions is getting a lot of attention.

The Government has further focused attention on this issue with its plan to progressively increase the age for pension eligibility from 65 to 67 over the next few years.

The age that an individual chooses to retire can have a significant influence on their retirement savings, and in turn, their standard of living throughout their retirement.

Undoubtedly, a shorter retirement is more affordable than a long one. Those who elect to remain in the workforce have the opportunity to save for longer, for what will be a shorter retirement.

Some people are not in the position to choose their own retirement age given such considerations such as their health and the availability of employment opportunities.

The Australian Bureau of Statistics (ABS) released a report stating that the average age of retirement of individuals who retired over the past five years was 61.5 years. However, the report also showed that of the 4.7 million in the labour forced aged over 45 almost a half intend to retire between 65 and 69

It is always a good idea to discuss retirement with a professional to discuss the impact of the intended retirement age on the ability to finance the desired standard of living in retirement.

Posted on 20 February '14 by , under Super.

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What to consider when consolidating your super

The ATO reported that 45% of working Australians were not aware that they had multiple super accounts in 2016. Having multiple super accounts is particularly common for individuals who have had more than one job. If this is you, it is important to identify and manage your super accounts because having more than one can be costly as a result of account fees from multiple funds.To combat this, you may want to consolidate your super, which moves all your super into one account. Not only does this save on fees, but it also makes your super easier to manage and keep track of.

Before consolidating your super, it is important to do the following:

Research your funds' policy
Compare your active super accounts so you can make the right choice about which one you should close. Things to assess include:

  • Exit fees
  • Insurance policies
  • Investment options
  • Ongoing service fees
  • Performance of the funds

Check employer contributions
Changing funds may affect how much your employer contributes, as some employers contribute more to certain funds. Check your current accounts to see if changing funds will affect this. Once you have selected a super fund, regardless of whether you choose a new super fund or one of your existing ones, provide your employer with the details they need to pay super into your selected account.

Gather the relevant information
When consolidating your super, you will need to have the following details ready:

  • Your tax file number.
  • Proof of identity. This could include your driver's license, birth certificate or passport.
  • Your fund's superannuation product identification number (SPIN).
  • Your fund's unique superannuation identifier (USI).
  • Details of your previous fund.

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