Transition to Retirement

Overview

The Transition to Retirement module automatically optimises both the level of pension and the amount to contribute to superannuation for a Transition to Retirement Strategy.

Provisio will optimise the tax savings and determine the effective strategy to match client’s existing net income (or any income you specify) while maximising retirement savings.

Determining the most tax-effective strategy for yourself is tedious, time-consuming and prone to error. Instead, Provisio will do this for you, taking into account all factors and legislative rules, and provide you with simple-to-follow implementation details.

Features

  • Fast - Produces a statement of advice document or insert within seconds of entering the client's details
  • Tax-Efficient - Considers not only pension and salary income, but also the tax savings within the super fund (0% for pensions, 15% in accumulation). This is critical, and is too often an ignored factor when using this strategy
  • Compliant - Adheres to legislated rules and policies such as contributions limits, tax-free income levels, tax offsets and adjusting recommendations once the client turns 60, and the pension becomes tax-free
  • Partial Year Modelling - Existing contributions to the superannuation fund are considered and implementation details for the remainder of the year are provided
  • Handles Complex Modelling - Customisation of the calculations (such as changing the income earned, required income or concessional contributions) can be made for each year of the strategy
  • Full Control of Recommendation - allows you to specify a recommended pension and salary sacrifice amount for any year of the strategy
  • Reboot supported - Option to refresh the pension each year to incorporate the contributions from the previous year

Why not the maximum pension?

One of the most common questions we get asked is why Provisio often does not select the maximum pension when you may expect it to be the best answer.

The answer is in the tax savings that optimisation can also create inside the superannuation fund.

Unless you refresh the pension, drawing large amounts from the pension fund actually depletes the tax-free pension account, and pours larger amounts of contributions back into the taxed accumulation account.

This is where balancing the personal tax savings with those inside the superannuation fund becomes important to the client's overall tax savings.