John works as a mechanic in a small country town earning $60k p.a. and he wants to plan his retirement with his wife. They have less than $200k in Super, and they want to maximise their retirement income.
Fin15, we recommended John a less risky portfolio inside Super as he was not been invested accordingly with his risk profile. We recommended consolidating his 3 Super funds into 1 with a Pension fund to drop his fees and allow him to access super money and do a re-contributing strategy via salary sacrifice. We also created a plan where John will save as much superannuation as possible without impacting his pension payment at age 67.
We recommended John to take $5k from super and recontribute this money via salary sacrifice to save him extra $1.8k per annum in income tax while doubling up his super contributions. We also recommended comparable insurance inside Super that is personalised to ensure he actually qualifies to claim. His premiums reduced from $3,800 to $2,500 p.a. We recommended consolidating his 3 Super funds into 1 with a Pension dropping his fees from $2,000 to $900.