The Wealthmaker – Blue Chip Wealth Management
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  • What is a budget?

    BudgetA budget is one of the best and most practical tools to help you manage your finances and unburden your life so that you can achieve things that are really important to you!

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  • What will a budget do?

    Goal
    • Identify surplus money that can be used to achieve your goals.
    • Identify excess spending that is preventing you from achieving your goals.
    • Identify your spending priorities.
    • Increase your understanding and power over your money.
    2 of 17
  • Who needs a budget?

    ConfusedAnyone with...

    • Limited income.
    • Debt.
    • Goals and dreams that will require money.
    • Plans for a large purchase.
    • Wanting to fund higher education.
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  • How to start or update your budget

    • Make a list of all your fixed expenses, e.g. rent, mobile phone, dry cleaning, car registration & insurance, etc.
    • Make a list of all of your non-fixed expenses (usually non-essential).
    • Make a list of expected one-off costs.
    • Keep a list of everything you spend your money on for one month.
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  • When to start or update your budget

    Today! Reviewing your budget regularly, at least annually, will help to keep your spending and savings on track, as well as keep you focused on your goals and dreams.

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  • Budgets are particularly useful when you are looking forward to milestones in life:

    • Your first job, a new job, or a pay rise
    • Moving out on your own
    • Marriage
    • Divorce
    • Starting a family
    • Buying a home
    • A large purchase, such as a car or trip
    • A child’s education
    • Eliminating your debt
    • Starting your own business
    • Planning for retirement
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  • Start saving

    Regular investing is a particularly effective and convenient way to help you reach your financial goals. Even a little money invested regularly can grow into a tidy sum over time.

    The easiest way to save is through a regular investment plan. By investing an amount each month, you will be well on your way to developing substantial savings, and this introduces you to the world of investing.

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  • Bills, bills, bills.

    They are the cost of living independently and they need to be managed. Particularly, we must manage and control our spending patterns on credit cards!

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  • Long-term implications

    • Higher credit rates
    • Larger security deposits
    • Missed job opportunities
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  • Credit is not free money

    The costs of interest, late fees and the vicious cycle of paying for yesterday’s purchase keeps those burdened with debt from realising tomorrow’s opportunities.

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  • Debt does not just go away

    • Car loans
    • Higher education debts
    • The longer you put off erasing your debts, the more interest you will pay
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  • Take control and tackle your debt

    • Your best bet is to tackle the more expensive debt first.
    • Look into the possibility of consolidating your loans.
    • Create a repayment plan.
    • Don’t charge anything new while you are getting your debt under control.
    • Pay with cash, cheque or a debit card and leave the credit cards in a safe place at home.
    • Avoid the temptation to accept every credit card offer that comes our way, to restrict the level of debt that you are able to get yourself into.
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  • The Real Cost of Cars

    Do you know how much it really costs to keep a car running every year? From negotiating to buy the car, to payment of registration and insurance costs, there are a host of new and ongoing costs associated with owning your car. So before you dig deep to buy, take on a pricey lease or commit yourself to a loan, prepare yourself.

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  • Costs to consider before you purchase a car and even before you decide how much you want to spend on your car!

    • Initial purchase price
    • Stamp duty
    • Registration
    • Insurances – third party, fire & theft, comprehensive
    • Roadside assistance
    • Fuel
    • Servicing
    • Tyres
    • Maintenance and repairs – especially older vehicles
    • Accessories – e.g. stereo, speakers, seat covers.
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  • The Cost of Education

    The cost of higher education has been increasing at a startling rate, while at the same time our rapidly changing world requires higher levels of education to compete in the job market.

    Typically, the total cost of a tertiary education courses can range from about $20,000 upwards toward $80,000 and beyond. The result too often is a huge stress on a family’s finances, and a debt trap.

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  • Cost saving tips for students

    • Find part-time work
    • Try to make full or partial payments on your HECS fees to quality for the discount.
    • Meet with Centrelink to determine if you are eligible for a healthcare card and if so use the benefits, including medication, and transportation.
    • Ask Centrelink if you qualify for any other benefits.
    • Research grants and scholarships and apply.
    • Find out if your school has a student guild and if so make the most of its resources, discounts and giveaways.
    • Keep your lifestyle simple – you will never have a better opportunity to keep lifestyle costs down than when you are young and flexible.
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  • Planning ahead for higher education

    Planning ahead is the best solution for tackling education expenses.

    • Have a goal (target time frame and amount).
    • Create a plan (financial advisers can assist with the development of the most appropriate plan for your needs).
    • Maintain a disciplined approach, e.g. a monthly savings plan.
    • Research your options, including grants and scholarships, HECS (Higher Education Contribution Scheme).
    • Always maximise the return on the money you do have by a opening higher interest earning savings account, a cash management account, or term deposit or invest it wisely.
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If you need more information or guidance please contact us on (02) 8188 0148
  • Wealth Creation

    Wealth CreationWealth creation – some people jump to the concept, yet for others the thought alone can start your head spinning, or worse, your stomach. Rest assured, no matter what your tolerance is for risk or your aptitude for financial matters, there is a solution for you.

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  • The story of creating wealth

    Building BlocksThe earlier you start saving and investing the better. This is because of the impact that time and compounding have on your money. Interest accumulated over time through shares and managed funds will be earned on the original money you invested, plus all the interest previously accumulated. Also, the sooner you begin to save, the more experienced and attuned you will become to the activity.

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  • Start saving

    Save MoneyRegular investing is a particularly effective and convenient way to help you reach your financial goals. Even a little money invested regularly can grow into a tidy sum over time.

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  • Maximise your savings and diversify your investments

    Always maximise the return on the money you do have by opening higher interest earning savings, cash management account, or term deposit accounts or invest it wisely.

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  • Protect what you have

    Savings plans, superannuation, property, direct shares and managed funds are all tools that help create wealth and achieve financial goals, especially for retirement.

    It is very important that you protect your wealth and your family both now and in the future. This is normally achieved through the use of various life insurance products. Your adviser will assist you with the most appropriate type and level of protection you require.

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  • Wealth Creation Tips

    • Define your goals and your financial needs on a regular basis – things change and so can your priorities.
    • Know and understand your own risk tolerance.
    • Set a time frame for each of your goals.
    • Seek advice form a qualified financial adviser.
    • Be realistic.
    • Balance your savings and investment strategy with your goals, time frame, and risk tolerance.
    • For those who are between the ages of 30 – 55, your financial plan should include a plan for your retirement, and it should be a high priority.
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  • Insurance: Do you need any?

    Insurance becomes an issue for all of us once we have “things”, such as an investment portfolio, debt, mortgage, children or anyone else who is financial dependent upon you, financial obligations and living costs that can only be met by your income, and therefore your ability to work.

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  • Who needs insurance advice (also known as “risk advice”)? And when?

    • Upon marriage or divorce
    • Purchase of a home of investment property
    • Borrowing to invest or as your savings and investments grow
    • Debt levels change
    • Starting or growing your family
    • Anyone with extended families from multiple marriages
    • Change of job or level of income
    • Entering a tradesperson career
    • Starting or selling your own business
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  • Income protection, also known as disability insurance, will replace up to 75% of your income for either a specified period of time or until you reach the age of 65, depending on the policy you choose.

    If you become seriously ill of have an accident that prevents you from working for an extended period of time your income protection will help your to live and meet some, if no all, of your financial commitments.

    It will also help you to avoid using savings and investments for daily living if you have a policy that allows you to do this.

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  • Life Insurance

    List insurance provides a safety net for your dependents if you were to die.

    Life insurance not only helps supplement income and cover debt if a main breadwinner were to die, it helps provide a buffer during the grieving period as well as burial costs.

    If kids, especially young children are involved, additional money may be needed for care, after school care, or help around the house.

    Life insurance is invaluable for sole parents and people who have children with more than one partner.

    It will give you and your loved ones comfort to know that they will be looked after if you were to die.

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  • Total and Permanent Disability Insurance

    Also, called simple TPD, this policy may often be taken out as an extra on your life insurance.

    The most unusual purpose of TPD is to provide a lump sum payment if one is to suffer from some type of accident or illness that leaves them unable to continue in their usual occupation, or permanently disabled for purposes of working in that occupation.

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  • Trauma Insurance

    Trauma insurance offers financial protection in the event of a serious illness of disability, and depending on the policy, a full or partial payment may be made upon death.

    Generally, they are used to ensure that living expenses, as well as recovery care, is provided for in the event of a major illness of disability.

    These policies have become increasingly popular as medical advances have become so successful in saving people who suffer major illnesses and accidents.

    Trauma insurance is often bundled with a life insurance policy but may be taken as stand-alone cover.

    Some companies also offer protection for children.

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  • Business Insurance

    Business insurance, incorporated through life, trauma, and income protection insurance, is a vital safety net for anyone operating his or her own business, or in partnership in a business.

    It should be a strategy that protects the business, your income and your personal assets from being lost while the main income producer of the business is away due to injury of illness.

    It is important that the structure, including ownership and beneficiaries, of the policies be organised correctly in consideration of the operational issues of the business.

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  • Who needs a budget?

    • Anyone with limited income.
    • Anyone with debt.
    • Anyone with goals of dreams will require money.
    • Anyone with plans for a large purchase.
    • Anyone who wants to make the best use of their money.
    • Anyone wanting to fund higher education or a child’s education.
    • Anyone planning for retirement.
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  • A budget will...

    • Identify surplus money that can be used to achieve your goals.
    • Identify excess or superfluous spending that is preventing you from achieving your goals.
    • Identify your spending priorities.
    • Increase your understanding and power over your money.
    15 of 28
  • When to start or update your budget

    Everyone can benefit form a budget. And reviewing your budget regularly, at least annually, will help to keep your spending and savings on track, as well as keep you focused on your goals and dreams.

    16 of 28
  • Budgets are particularly useful when you are looking forward to milestones in life:

    • A new job or a pay rise
    • Moving out on your own
    • Marriage
    • Divorce
    • Starting a family
    • Buying a home
    • A large purchase, such as a car
    • A child’s education
    • Eliminating your debt
    • Starting your own business
    17 of 28
  • Start saving

    Regular investing is a particularly effective and convenient way to help you reach your financial goals. Even a little money invested regularly can grow into a tidy sum over time.

    The easiest way to save is through a regular investment plan. By investing an amount each month, you will be well on your way to developing substantial savings, and this introduces you to the world of investing.

    18 of 28
  • What is estate planning?

    Estate planning is a way of ensuring that there are sufficient assets on your death:

    • to be distributed to the appropriate people,
    • at the appropriate time, and
    • in the most tax effective manner, as chosen by you.

    It involves more than just having a Will. It involves all the assets you own or control.

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  • Four key issues to be considered

    There are four key issues that need to be considered during the estate planning process. They are as follows.

    1. The availability of assets on your death

    Your assets must be managed and preserved to ensure that there are sufficient assets available on your death to carry out your wishes.

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  • Four key issues to be considered

    2. People

    Your assets should be distributed to the right people. It may not be wise to leave all your assets to a 15 year-old child (without any conditions) or to an adult child with an imminent marriage breakdown.

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  • Four key issues to be considered

    3. Timing

    Your assets should be distributed at the most appropriate time. The timing of an asset transfer can have significant tax effects, reducing the net amount of any distribution.

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  • Four key issues to be considered

    4. Control

    Sometimes events happen that mean we lose the amount of control we previously had. These can include being overseas and unable to attend to your financial affairs or losing the ability to manage your own affairs as a result of an accident of illness.

    As part of the estate planning process there are a number of arrangements that can be put in place to enable another person to make these decisions on your behalf.

    Such arrangements include enduring powers of attorney, advance health directives and funeral plans.

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  • What is negative gearing?

    Negative gearing is the process where a person borrows money to invest and the costs of the investment are greater than the income received.

    Effectively, at least on paper, the investment makes a loss for a period of time.

    Frequently the investor may need to contribute money to the investment as the income received from the investment may not be adequate to cover the costs.

    The most common investments that are negatively geared are real estate, shares and unit trusts.

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  • What is negative gearing?

    By gearing into an investment the return is magnified if the total return including capital growth is greater than the interest and other ownership costs. Equally, losses are magnified if the total return is less than interest and ownership costs.

    To maximise the benefits of gearing investors should have a high taxable income so they may write off their losses. Negatively geared investments are more suitable for investors on a high marginal income tax rate with surplus disposable income.

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  • Risk Profile and Return

    The term risk profile is used to define a person’s comfort level and suitability with fluctuations, including potential losses, of their investment and savings dollars.

    An individual’s risk profile takes into account factors such as:

    • How long do you intend to invest money and when will you need to access some or all of your money?
    • How comfortable are you with day-to-day fluctuations in the investment?
    • What are your investment goals?
    • What is your age?
    • What is your surplus income level?
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  • Risk Return Trade – Off

    For example, savings accounts and term deposits will keep your money secure, however, the money you deposit into these accounts will not earn much. While an investment in fixed interest securities (bonds) may earn a bit more interest, as the risk of the security rises so does the yield. Other investment options such as property and shares have historically produced the greatest returns over longer time frames but both have inherent risks of capital losses and volatility over the short term. Volatility is the unpredictable upward and downward shifts of investment values over a period of time. The greater the volatility the more frequent the shifts.

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  • Superannuation – Do I have enough?

    The answer, quite simply is, it depends!

    Some of the factors that need to be taken into account when determining if a person will have enough money to retire include:

    • When do you intend to retire?
    • How much income would you like to receive in retirement?
    • Am I seeking to supplement my own income with Government benefits?
    • How long do you expect to be in retirement?
    • What about the next generation?
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If you need more information or guidance please contact us on (02) 8188 0148
  • Age Pension

    RetirementWho can get it?

    You may get Age Pension if you:

    • are aged 65 and over if you are a man, or
    • are above certain qualifying ages for women (see the ages chart in this section)
      and
    • meet certain residence requirements, and
    • have income and assets below a certain amount
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  • What you get

    RetirementYou may receive:

    • a fortnightly Age Pension
    • Pharmaceutical Allowance
    • a Pensioner Concession Card
    • Rent Assistance
    • Remote Area Allowance
    • Telephone Allowance
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  • Income and assets tests

    BeachHow much Age Pension you get will depend on your family circumstances and your income and assets. Centrelink follows four steps to work out how much pension you’ll get.

    Step 1

    They work out the maximum amount that could be paid to you and your partner (if you have one). The amount can include other benefits like Rent Assistance and Telephone Allowance.

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  • Income and assets tests

    Step 2

    They work out the maximum amount that could be paid to you and your partner (if you have one). The amount can include other benefits like Rent Assistance and Telephone Allowance.

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  • Income and assets tests

    Step 3

    They calculate your total assets. If you have a partner, your own and your partner’s assets are combined.

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  • Income and assets tests

    Step 4

    The amounts of pension payable under the income test and the assets test are compared. You will be paid the lower of the two rates.

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  • How much income do I need in retirement?

    Do you see yourself dining out at a top quality restaurant once a week, or will lunch at a local coffee shop satisfy your dining out experience?

    Will your holidays consist of hitching up the caravan and travelling up of down the coast to your favourite beachside location, or is a week or two feasting on wine and cheese in Tuscany more your style?

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  • Income and assets tests

    You see, the amount of retirement income you need is influenced by the lifestyle you would like to have, whilst the level of income you will receive will be determined by:

    • The amount of capital you have to invest to produce an income (such as superannuation).
    • Your willingness to allow your capital to run down during retirement (as opposed to preserving all or part of it to pass on to the next generation).
    • Your eligibility to receive Government benefits to supplement other income you may receive.
    • The length of time the income will be paid

    In order to plan for your retirement income, the earlier you start the better.

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  • What options do I have with my superannuation payout?

    The options you have are very much determined by the rules relating to the fund that holds your superannuation benefits.

    For example, some funds pay benefits in the form of an income stream of pension, others pay the benefit as a lump sum, whilst others will allow you to take either a lump sum of a pension.

    When superannuation benefit passes from the pre-retirement phase (the accumulation phase) to the pension paying phase (the income phase) there is generally no tax payable (except when coming out of some public sector funds) but there maybe fees and charges levied on the transfer depending on the fund or funds being used.

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  • What options do I have with my superannuation payout?

    Even though you current superannuation fund may only allow benefits to be taken as a lump sum, it is generally possible to transfer your superannuation from one fund to another that may provide more suitable payment options such as an income stream. Transferring benefits from one superannuation fund to another is referred to as “rolling over” a benefit.

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  • Insurance: Is it still pertinent for you?

    Once we reach age 55 and beyond we still need to consider any dependents, and how much longer they may be financially dependent on us. Although some 55+ year olds have achieved the great Australian dream of paying off the mortgage, and other debt, for others it may still remain a dream.

    Insurance can play an important part of a financial plan for those 55 and over. In fact, protection after age 55 is particularly important because this is also the time we are planning or beginning our retirement and any unforseen illness of accident could thwart those plans with devastating affect.

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  • Asset Protection

    Who needs insurance advice (also known as “risk advice”)? And when?

    • Upon marriage or divorce
    • Purchase of a home or investment property
    • Borrowing to invest or as your savings and investments grow
    • Debt levels change
    • Starting or growing your family
    • Anyone with extended families from multiple marriages
    • Change of job or level of income
    • Entering a tradesperson career
    • Starting or selling your own business

    Life can be a risky business but you don’t have to take unnecessary changes.

    12 of 24
  • What is a budget?

    A budget is one of the best and most practical tools to help you manage your finances and unburden your life so that you can achieve things that are really important to you!

    13 of 24
  • What will a budget do?

    • Identify surplus money that can be used to achieve your goals.
    • Identify excess spending that is preventing you from achieving your goals.
    • Identify your spending priorities.
    • Increase your understanding and power over your money.
    14 of 24
  • Who needs a budget?

    Anyone with...

    • Limited income.
    • Debt.
    • Goals and dreams that will require money.
    • Plans for a large purchase.
    • Wanting to fund higher education.
    15 of 24
  • When to start or update your budget

    Everyone can benefit form a budget. And reviewing your budget regularly, at least annually, will help to keep your spending and savings on track, as well as keep you focused on your goals and dreams.

    16 of 24
  • Budgets are particularly useful when you are looking forward to milestones in life:

    • Marriage.
    • Divorce.
    • A large purchase, such as a car.
    • A child’s/grandchild’s education.
    • Eliminating debts.
    • Ensuring quality of retirement life.
    17 of 24
  • Providing for the next generation

    Many parents wish to ensure that there is sufficient value in their estate to pass on to their children and give them a helping hand for their future.

    However, as we are living longer and healthier lives, we need to support ourselves in retirement for a longer period than perhaps our parents and grandparents needed to.

    Many people find this a difficult situation and often deprive themselves of income in retirement in order to preserve their capital for their children.

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  • Providing for the next generation

    There is a much quoted expression that sums up this dilemma:

    “if you don’t fly first class... Your children will”

    Parents and their children need to work through this issue together to ensure that a workable compromise is reached. A financial planner can be very helpful in this situation as they project the capital required to produce the required level of income and, at the same time, manage the capital to ensure that it does not diminish prematurely.

    19 of 24
  • Risk Profile and Return

    The term risk profile is used to define a person’s comfort level and suitability with fluctuations, including potential losses, of their investment and savings dollars.

    An individual’s risk profile takes into account factors such as:

    • How long do you intend to invest money or when will you need to access some or all of your money?
    • How comfortable are you with day-to-day fluctuations in the investment?
    • What are your investment goals?
    • What is your age?
    • What is your surplus income level?
    20 of 24
  • Risk Profile and Return

    For example, savings accounts and term deposits will keep your money secure, however, the money you deposit into these accounts will not earn much. While an investment in fixed interest securities (bonds) may earn a bit more interest, as the risk of the security rises so does the yield. Other investment options such as property and shares have historically produced the greatest returns over longer time frames but both have inherent risks of capital losses and volatility over the short term. Volatility is the unpredictable upward and downward shifts of investment values over a period of time. The greater the volatility the more frequent the shifts.

    21 of 24
  • What does “preservation” mean?

    The intention of superannuation is to provide benefits for retirement.

    In order to prevent people form accessing their superannuation benefits and dissipate the funds prior to retirement, the Government introduced a system known as preservation.

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  • In general terms, preserved benefits can only be accessed in the following circumstances:

    • On reaching 65 years of age (whether continuing to work or not)
    • If aged between 55 and 60, on permanent retirement from the work force, with no intention of resuming employment
    • If aged between 60 and 65, on ceasing employment
    • On death, or total and permanent disablement
    • On suffering financial hardship of on compassionate grounds (although very strict criteria applies to the release of preserved benefits on these grounds.
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  • What does “preservation” mean?

    Preservation becomes an unexpected issue for people who plan to retire early and perhaps continue to work on a part-time basis. In such circumstances people may not be able to get access to their superannuation benefits.

    Prior to making any plans to cease working it is important that you have a clear understanding of your ability to access your superannuation benefits.

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If you need more information or guidance please contact us on (02) 8188 0148
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