May 2002 Volume 83 Number 5 "serving the protectors"

Australians are living longer than ever before and need to prepare for a longer retirement.

Today, the average Australian male is expected to live until he is 76 and the average woman until almost 82, according to the Australian Bureau of Statistics. When you consider that the average retirement age is 60, you’re now looking at spending about 20 years in retirement.

Many people are unaware of just how much they’ll need to fund their lifestyle in retirement. People should be looking to achieve half to two thirds of their existing income in retirement. You must remember that many families are now reliant on two incomes and it is the joint income that should be targeted.

One way to ensure that you’ll have enough money in retirement is to start planning sooner rather than later. The introduction of the Superannuation Guarantee Levy in 1992 has seen many firms amend their superannuation provisions, and many people in their 40s and 50s will find their current levels of superannuation inadequate.

Topping up your superannuation is one of the most tax-effective ways to save for your retirement, except for those people on low marginal tax rates.

You can “top-up” your superannuation by salary sacrificing, which means you forgo part of your salary and make increased contributions to your super instead. The amount of money you are salary sacrificing is paid in pre-tax dollars (i.e. before it is paid to you as your net salary) and will attract a tax rate of only 15 per cent. This is why salary sacrificing is such a tax-effective way of increasing your superannuation benefit.

PCU Investment Services can help you prepare for your retirement and will tailor an investment plan to make your money work for you long after you’ve left the workforce.

Tailored financial plans

PCU Investment Services offers a personal and independent financial planning service, and can advise you on issues regarding superannuation, retirement planning, savings plans, self-funded retirements, education funding, risk protection insurance, pensions, social security, redundancies and rollovers. Following your first free interview, a qualified adviser will present you with a written report outlining a financial plan tailored to your needs.

Take advantage of your free appointment with PCU Investment Services by calling them on (08) 8231 5533 today!

FREE retirement seminars

PCU members are invited to attend a free one-day retirement seminar conducted by PCU Investment Services.

The seminars cover issues such as lifestyle changes, financial consideration, lump-sum payouts, police pension and managed investments. Morning and afternoon tea and a light lunch are also included at no cost. Seminars are held from 9am to 4pm in the Police Credit Union boardroom. Dates for the 2002 Retirement Seminar programme are: May 17, May 31, June 14 and October 11.

To confirm your place at one of these free retirement seminars, please call Tracey or Megan at PCU Investment Services on (08) 8231 5533.

This information has been provided as general advice only and does not take into consideration your financial circumstances, needs and objectives. Please consult with your authorised representative before you act on this advice.

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