Transition to Retirement

Overview

Manually determining a Transition to Retirement strategy is tedious, time-consuming and error-prone. Instead, let Provisio optimise client TTR strategies for you.

Provisio considers all tax factors and legislative rules, and gives your clients simple implementation instructions. We even include a sample SoA template you can use to generate client-ready documents. You can customise the sample template or create your own using Microsoft Word.

Provisio's Transition to Retirement module optimises the client's pension level, tax savings, and super contributions amount, and creates a Transition to Retirement Strategy that achieves the highest benefit. You can specify that the TTR strategy should match the client’s current net income, or any other desired income level, while maximising retirement savings.

Features

  • Fast - Produces a client-ready SoA within seconds of entering the client's details
  • Tax-Efficient - Considers not only pension and salary income, but also the tax savings within the pension and accumulation funds which can make a significant difference in overall benefit
  • 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
  • Part-Year Modelling - Considers the year's existing contributions and provides pro-rata implementation details for the remainder of the year
  • Handles Complex Modelling - You can customise the calculations (such as income earned, required income or concessional contributions) for each year of the strategy
  • Full Control of Recommendation - You can specify a recommended pension and salary sacrifice for any year of the strategy
  • Reboot Supported - You can refresh the pension each year to incorporate the previous year's contributions

Why not the maximum pension?

One of the most common questions clients ask us, is why Provisio often does not select the maximum pension when you may expect it to be the best strategy.

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

Unless you refresh the pension, drawing large amounts from the pension fund 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 super fund becomes important to the client's overall tax savings.

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