We are approached by many GESB Super members about the Transition to Retirement (TTR) strategy. This is a strategy which offers great benefits for GESB members aged 55-65, in particular those with West State and/or Gold State accounts. However it is an area which often is complex, particularly when dealing with untaxed funds (West State) or defined benefit funds (Gold State).
The cost for our advice on this strategy is normally in the range of $1,000-2,000 (plus GST). Our advice is strategy based and as we are not owned by a bank or product provider (eg AMP) we are not restricted to using certain products or brands. JustInvest Financial Planning was established in 1967 and we have specialised in retirement planning for both government employees and the general public for many years. We have expert knowledge of all GESB super funds, along with retail and industry funds, and strategies on how to maximise benefits for retirement.
TTR is a super strategy that allows you to access your super as an income stream whilst still working. You don’t have to reduce your work hours, but you may choose to as a way to better align your work with your lifestyle, health or family priorities. If you do reduce your hours, the income you receive from your super benefits will help to supplement any loss of salary.
To be eligible for TTR, you must have reached your ‘preservation age’ which is currently 55 (for those born before 1 July 1960), and moving to age 60 in a stepped format up to those born after June 30, 1964. Your super benefit must be used to start a regular pension which does not allow lump-sum cash withdrawals. This is known as a non-commutable income stream (or NCAP – Non Commutable Account Based Pension).
GESB’s Retirement Income Account Based Pension can be used as a non-commutable income stream, however it is important to note that there are also many other options available for you, even if you are continue to use GESB as your accumulation (Super) fund. For example, members who want to invest in line with their ethics find that GESB offers no options, whereas there are many Pension providers who offer ethical and socially responsible options.
At JustInvest we ensure that careful assessment is made regarding West State and Gold State benefits before making any changes to your portfolio. Only when a full assessment of your individual circumstances is complete can we ascertain the optimal outcome of the TTR strategy.
TTR CHECKLIST
Ensure you are getting the correct advice in your Financial Planning consultation. A brief checklist is as follows:
- Ask for a full assessment of your current portfolio(s), including taxed and untaxed components
- Ask for full product costings, showing what the recommended product will cost you on an annual basis
- Ask whether you have a commencement date which is pre 1983 (see: Pre 1983 Fact sheet) and what impact this will have
- Ask for a written quote before any work commences, and whether there are additional costs to pay later, such as ‘implementation fees’ (Note: JustInvest does not charge implementation fees)
FACT SHEETS:
Contact us today to discuss your requirements on 08 9322 1110 (Perth) or 08 9756 7605 (Dunsborough/ South West region) or email clientsupport@justinvest.net.au
Further information can be found at www.gesb.com.au. Useful information can also be found at MoneySmart
