The background

Julie’s goal was to retire at 65 with $100,000 annual income. Upon turning 60, she was ready to start working part-time and begin enjoying part-time retirement. Her industry superannuation fund was $1.2 million and she had $300,000 of personal savings. Over the next five years she was happy to work and salary sacrifice $25,000 of her income per annum into her superannuation.

The client’s objectives

To understand the pros and cons of investing her personal savings into her superannuation fund or outside of it. To maximise her personal savings and superannuation in the lead up to retirement. To ensure that her superannuation fund remained flexible and accessible if and when required.

Our solution

We mapped out a five year superannuation contribution strategy for Julie to help her achieve her goal and presented three superannuation cash flow projections*:

  1. Investing $300,000 personal savings outside of superannuation
  2. Investing $300,000 personal savings into superannuation
  3. Investing $300,000 personal savings into superannuation plus the addition of the $25,000 per annum through salary sacrifice

*(The cash flow projections were based on the assumption that all financial aspects would remain the same including the return percentage on investment and capital growth percentage).

The results

Our superannuation contribution strategy provided Julie with $100,000 annual income for 35 plus years with the flexibility to access all her superannuation benefits after retirement.

For more information on building your own superannuation contribution strategy, contact Garvin Jones here.