The best time to start planning for retirement is yesterday.

But the second-best time? Today.

About two-thirds of Australians retire earlier than they anticipated because of unexpected events such as job loss or redundancy, they need to care for a family member, have a sudden illness or injury, problems at work or a partner’s decision to retire.

But, whether you’re in your 50s, 60s, or even beyond, it’s never too late to take meaningful steps toward a more secure and fulfilling retirement.

The good news is that with the right guidance and a few smart moves, you can still build a retirement plan that reflects your values, supports your lifestyle and gives you peace of mind.

Where to begin

Before you make any changes, it’s important to understand your current financial position. This includes:

• your superannuation balance
• other savings or investments
• debts such as your mortgage, credit cards and personal loans
• expected retirement income sources including the Age Pension, rental income and part-time work

Boost your super

Even if you’re starting later, there are ways to accelerate your super growth using:

• Salary sacrifice Contributing pre-tax income into super can reduce your taxable income while boosting your retirement savings.
• Personal contributions You may be eligible for a tax deduction or government co-contribution depending on your income.
• Catch-up contributions You may be eligible to add to your super but be aware of the caps on contributions.

These strategies can be especially powerful in your 50s and 60s, when your income may be higher and retirement is on the horizon.

It’s also a good idea to regularly consider your super investment options and review your risk tolerance and time horizon.

Deal with debt

If possible, getting your debt under control before you retire is a useful strategy.

You could consider using your superannuation or other savings or downsize your home to pay off a mortgage or other loans. But first, it’s essential to carefully check the tax impact, the effect on your super and whether any potential government benefits will be affected.

Reassess your lifestyle goals

Retirement isn’t just about money, it’s about how and where you want to live, how much travel you’d like to do and if you’d continue to work part-time.

Clarifying your lifestyle goals helps shape your financial strategy. It also ensures your retirement plan reflects your values, not just your bank balance.

How much will I really need?

Aim to create a retirement budget. Estimate your future expenses including housing, food, travel and healthcare and compare them to your expected income. This helps identify any shortfalls and guides your savings strategy.

You will also need to consider the amount of time you might spend in retirement. This will depend on when you retire (planned or unexpected) and how long you live. This is called longevity risk. Given life expectancy is unpredictable, there is a possibility that your retirement savings may not last throughout retirement.

Understand your entitlements

Many Australians are eligible for government support in retirement, including:

• Age Pension Based on income and assets, available from age 67 (for those born after 1957).
• Concession cards For discounts on healthcare, transport and utilities.
• Rent assistance If you’re renting privately and receive the Age Pension.

Even if you don’t qualify now, you may be able to restructure your finances to maximise future entitlements.

Review regularly and remain flexible

Retirement planning isn’t a one-time event. Life changes and so should your strategy. Regular reviews help you:

• Adjust for market movements or legislative changes
• Update your goals and spending patterns
• Ensure your estate planning is current

Flexibility is key. Whether you retire gradually, take a sabbatical, or pivot to a new venture, your plan should evolve with you.

Next steps

Retirement planning is about taking the next step rather than chasing perfection. Whether you’re starting late or simply refining your strategy, every step you take now helps shape a more secure and meaningful future.

And remember that retirement isn’t an end point. It’s a new beginning even if you retire earlier than you anticipated. With the right plan in place, you can step into this next chapter with clarity, confidence and purpose.

We’d be happy to help you review your current retirement plan and identify any gaps in retirement goals and create a strategy should you need to retire earlier than expected.

How much tax you pay on your super contributions and withdrawals depends on:

• your total super amount
• your age
• the type of contribution or withdrawal you make

If you inherit someone’s super after they die, the person’s super fund pays you a super death benefit. You may have to pay tax on some of this benefit.

Because everyone’s situation is different, it’s always best to get advice about tax matters. Contact the Australian Taxation Office (ATO) or speak to us.

How super contributions are taxed

Money paid into your super account by your employer is taxed at 15%. So are salary-sacrificed contributions, also known as concessional contributions.

There are some exceptions to this rule:

• If you earn $37,000 or less, the tax is paid back into your super account through the low-income super tax offset (LISTO) .
• If your income and super contributions combined are more than $250,000, you pay Division 293 tax, an extra 15%.

If you make contributions from your after-tax income – known as non-concessional contributions – you don’t pay any contributions tax.

See the ATO website for more information about how much tax you’ll pay on super contributions.

Smart tip: To avoid paying extra tax on your super, make sure you give your super fund your Tax File Number.

How super investment earnings are taxed

Earnings on investments within your super fund are taxed at 15%. This includes interest and dividends, less any tax deductions or credits.

How super withdrawals are taxed

The amount of tax you pay depends on whether you withdraw your super as:

• a super income stream, or
• a lump sum

Everyone’s financial situation is unique, especially when it comes to tax. Make an informed decision. We recommend speaking to us before you decide to withdraw your super.

Super income stream

A super income stream is when you withdraw your money as small regular payments over a long period of time.

If you’re aged 60 or over, this income is usually tax-free.

If you’re under 60, you may pay tax on your super income stream.

Lump sum withdrawals

If you’re aged 60 or over and withdraw a lump sum:

• You don’t pay any tax when you withdraw from a taxed super fund.
• You may pay tax if you withdraw from an untaxed super fund, such as a public sector fund.

If you’re under age 60 and withdraw a lump sum:

• You don’t pay tax if you withdraw up to the ‘low rate cap’, currently $260,000.
• If you withdraw an amount above the low rate cap, you pay 17% tax (including the Medicare levy) or your marginal tax rate, whichever is lower.

If you have not yet reached your preservation age:

• You pay 22% (including the Medicare levy) or your marginal tax rate, whichever is lower.

When someone dies

When someone dies, their super is usually paid to their beneficiary. This is called a super death benefit.

If you’re a beneficiary, the amount of tax you pay on a death benefit depends on:

• the tax-free and taxable components of the super
• whether you’re a dependent for tax purposes
• whether you take the benefit as an income stream or a lump sum

Contact us today if you have any questions.

Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at https://moneysmart.gov.au/how-super-works/tax-and-super

Before you retire

If you’re planning to retire, you need to consider:

• your age, including if you have reached your preservation age
• your super
• how much tax you will pay on amounts you receive
• if good leaver conditions apply if you are part of an employee share scheme
• if the retirement capital gains tax concession applies if you sell your small business.

Special rules apply if you receive an employment termination payment, genuine redundancy payment or payments from an approved early retirement scheme.

If you’re leaving your job for other reasons, such as termination, change of industry or leaving Australia, the tax on payments you receive may be different.

Payments leading into retirement

If you receive a lump sum payment from your employer for unused annual or long service leave, you may pay tax on it at a lower rate than your other income. Your employer will report any lump sum payments at either ‘Lump sum A’ or ‘Lump sum B’ on your income statement or payment summary. You will need these details when you prepare your tax return.

A genuine redundancy payment is a payment made to you usually because the job you have been doing has been abolished. These payments are tax-free to a limit depending on the number of years you worked for that employer.

Your employer may offer staff an early retirement scheme to encourage certain groups of employees to retire early or resign. You may pay less tax on payments you receive under an early retirement scheme.

After you retire

Once you retire, you can access a number of tax offsets, such as:

• seniors and pensioners tax offset
• superannuation income stream tax offset.

If you have income from an Australian superannuation income stream, you may be able to claim a tax offset if you’re:

• receiving a disability superannuation benefit
• receiving a death benefit income stream
• 60 or over.

Employee share schemes

If you are a member of an employee share scheme (ESS), you need to consider the ‘good leaver’ conditions. Good leaver conditions in an ESS may allow employees to retain ESS interests if they cease employment to retire from the workforce permanently during the forfeiture period.

Whether ESS interests acquired under an ESS with good leaver conditions are at a real risk of forfeiture will depend on the facts and circumstances. This includes how the ESS operates and the employee’s personal circumstances.

CGT retirement exemption for small business

If you are selling your small business assets, the capital gains tax retirement concession may apply. The retirement concession can exempt a capital gain on a business asset, up to a lifetime retirement exemption limit of $500,000. This concession allows you to provide for your retirement.

If you choose the retirement exemption, there is no requirement to terminate any activity or cease business.

If you are under 55 years old just before you choose to use the retirement exemption, you must make a personal contribution equal to the exempt amount to a complying superannuation fund or a retirement savings account.

Speak to us if you have any questions.

Source: ato.gov.au June 2025
Reproduced with the permission of the Australian Tax Office. This article was originally published on https://www.ato.gov.au/individuals-and-families/jobs-and-employment-types/working-as-an-employee/leaving-the-workforce/planning-to-retire

Stay up to date with what’s happened in the Australian economy and markets over the past month.

Australia’s economy remained under pressure in October. Investors sharply pared back future rate-cut bets after inflation data came in higher than expected.

News of the higher-than-expected inflation numbers was followed by the biggest daily fall in the Australian share market in two months.

Wall Street ended the month subdued over suggestions of no further rate cuts expected this year but there was some optimism about US-China relations.

Click here to view our update.

Please get in touch on 03 9723 0522 if you’d like assistance with your personal financial situation.

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Email: integrityone@iplan.com.au

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This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Wealth Advisers Pty Ltd (ABN 35 994 727 125) as a Corporate Authorised Representative (1316489) of Integrity Financial Planners Pty Ltd (AFSL 225051). Integrity One Wealth Advisers Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

We plan for holidays, home renovations, and retirement but we’re less likely to plan for the unexpected. Life insurance is one quiet but powerful way to protect the people you love from financial stress if something happens to you.

Whether you’re raising a family, supporting a partner, or building a business, life insurance helps ensure that your legacy includes stability rather than uncertainty. It can be a powerful tool for your family’s financial resilience.

Life insurance is designed to provide a lump sum payment to your nominated beneficiaries when you die or, in some cases, are diagnosed with a terminal illness. The payout can help ensure that your loved ones aren’t left scrambling to cover costs such as mortgage repayments or rent, outstanding debts, funeral costs and living expenses during an already emotional time.

It can be particularly helpful if:

• you have dependents who rely on your income
• you’re the primary breadwinner or contribute significantly to household finances
• you have joint debts with a partner
• you want to leave a legacy or charitable gift
• you’re a business owner

Even if you’re young and healthy, life insurance can be affordable and locking in a policy early may mean lower premiums over time.

How much life insurance do you need?

There’s no one-size-fits-all answer, but a good starting point is to ask yourself: “If I were gone tomorrow, what financial gaps would my family face?”

Here’s a simple framework to help you estimate your coverage needs:

1. Calculate your financial obligations

Start by listing the major expenses your loved ones would need to cover:

• Mortgage or rent: how much is left to pay?
• Living costs: groceries, utilities, transport, childcare
• Children’s education: school fees, uniforms, university costs
• Debts: credit cards, car loans, personal loans
• Funeral and legal costs: can be around $10,000–$20,00

Add these up to get a baseline figure.

2. Consider your income

How long your family would need financial support. Multiply your annual income by the number of years you’d want to replace it, for example, five to 10 years.

If you earn $100,000 and want to provide seven years of income, that’s $700,000.

3. Factor existing assets

Do you have savings, superannuation, or investments that could help cover costs? Subtract these from your total needs to avoid over-insuring.

4. Account for inflation and future needs

Costs rise over time, and your children’s needs will evolve. It’s wise to build in a buffer of say, 10-20% to future-proof your coverage.

5. Review regularly

Your life changes, and so should your insurance. Marriage, children, mortgages and career shifts can all affect how much cover you need. We can help with a regular review to ensure your policy stays aligned with your goals.

Different types of life insurance

There are a few key types of cover to be aware of:

• Term life insurance pays a lump sum if you die or are diagnosed with a terminal illness.
• TPD (Total and Permanent Disability) covers you if you’re permanently unable to work due to illness or injury.
• Trauma insurance pays a lump sum if you’re diagnosed with a serious illness like cancer or stroke.
• Income protection replaces a portion of your income if you’re temporarily unable to work.

Life insurance in super

For many Australians, life insurance is already tucked away inside their superannuation fund. Most super funds automatically include a basic level of life cover and TPD insurance, and some also offer income protection.

Premiums are typically lower than retail policies and are deducted from your super balance. In many cases, you won’t need to complete a health check to get default cover, and the premiums may be more tax-effective depending on your circumstances.

While insurance in super is convenient, it’s not always comprehensive and it’s not guaranteed to suit your needs in the long term.

If you’re relying on insurance through super, it’s a good idea to review your fund’s policy and consider whether it’s enough especially if your circumstances have changed.

If you’re unsure where to start, we’re here to guide you through the options, crunch the numbers, and make sure your policy reflects your values and responsibilities

Take a sec to check

Scammers aim to take advantage of weak security and plan on you being distracted with everyday life.

To keep yourself safe:

• Stop – Don’t share your personal information such as your myGov sign in details, Tax File Number (TFN), or bank account details, with anyone unless you trust the person and they genuinely require your details.
• Check – Take a sec to check. Ask yourself could the message or call be fake? Is it really the ATO contacting you?
• Protect – Act quickly if something feels wrong or you’ve noticed suspicious activity on your ATO accounts.

Always be aware of what information you share. If a scammer gets your personal information they can use it to access your bank account, sign in to your myGov account, or steal money and commit fraud in your name.

If an interaction doesn’t feel right, don’t engage. You should either:

• go to Verify or report a scam
• check our latest Scam alerts
• or phone the ATO on 1800 008 540 to check.

If you are the victim of a data breach and your personal information has been accessed, go to Data breach guidance for individuals.

Your personal information

To commit identity crime or fraud, scammers only need some of your personal information. This may include:

• full name
• date of birth
• current address
• myGov and ATO online login details
• TFN
• passwords
• bank account numbers
• credit card details
• driver’s licence details
• passport details.

They can use this information in a variety of ways, such as to commit refund fraud in your name, access your myGov account to steal your tax refund, steal your superannuation or sell your identity to organised crime groups on the dark web or via other means.

If you suspect your personal information, such as your TFN, has been stolen, misused or compromised, phone the ATO as soon as possible on 1800 467 033 between 8:00 am and 6:00 pm Monday to Friday. They will investigate and can place extra protection on your ATO account.

Consequences of identity theft

If your identity is stolen the consequences can extend far beyond immediate financial loss (such as your super being cleaned out or refund fraud committed in your name) and lead to significant personal and professional challenges. Such as:

• impact to your credit rating, making it difficult to be approved for a loan or credit card
• making it difficult for you to prove who you are and get new identity documents
• damage to your reputation, potential for access to your social media accounts and spreading misinformation in your name
• it can also take victims of identity theft years to recover their identity and undo any damage

The emotional toll is also significant. Victims of identity theft often experience stress, anxiety and a sense of vulnerability knowing that someone else is capable of exploiting their personal information at any moment.

Protect yourself

Here are some top tips to keep your personal information safe:

• Don’t give out your personal information to anyone unless you trust the person and they genuinely require your details.
• We never send unsolicited emails or SMS with QR codes or links to an online portal. Scammers often use these methods to steal your personal information or plant malware on your devices. If you receive a notification asking you do this, it is a scam.
• Always access online services by directly typing the URL into a browser, not by clicking on a link.
• Protect your TFN – only give your TFN to organisations or people who have a legitimate need for it, such as your tax agent, current employer or bank. It’s important to verify that the person you’re giving your TFN to is who they say they are.
• Never share your passwords. Consider using passphrases instead of passwords, a password manager can help you generate or store passphrases. You should also consider updating them regularly.
• Enable multifactor authentication. If scammers obtain your password, it will be significantly harder for them to access your account.
• Keep your devices up to date. Scammers can use viruses, malware and programs to access or steal your personal information on your devices including phones, computers and tablets.
• Use your Digital ID (such as myID), set to the strongest level you can achieve, to access ATO online services through myGov.

To learn more about myID visit How to set up myID.

For top cyber security tips, visit Top cyber security tips for individuals. You can also set up Voice authentication to help protect your tax account and reduce the chance of scammers accessing it.

More information on securing your devices is available from the Australian Cyber Security Centre.

How the ATO keeps your information safe

They take the security and privacy of your personal information very seriously and have steps in place to make sure your data and online transactions are secure and safe.

They keep your personal information safe by:

• confirming your details when you contact them
• having a range of systems and controls in place to make sure your data and transactions are secure
• logging access to your personal information (to help the ATO identify any unusual behaviour).

To help you stay safe online, they:

• won’t ask you for your TFN or bank details via return email, SMS, or on social media
• won’t give your personal information to anyone without your consent, unless the law permits
• won’t communicate with you on behalf of another government agency or ask another government agency to represent them.

How they communicate with you

They may use SMS or email to ask you to contact them, but they will never send an unsolicited message with a link asking you to return personal information or log in to their online services.

The ATO has a Facebook, Instagram, X and LinkedIn account, but will never use these platforms to ask you to provide personal information, documentation or ask you to make payments.

Source: ato.gov.au May 2025
Reproduced with the permission of the Australian Tax Office. This article was originally published on https://www.ato.gov.au/newsroom/smallbusiness/ .