Page 11 - FWP Wealth Adviser Newsletter - May 2025

ISSUE 111
MAY 2025
Ask a based on a formula that could involve your years of service

and final salary, or other calculation methods, rather than
Q&A: Question your contributions and investment performance.
As you approach retirement, decisions like whether to
retire early, take a pension or lump sum, or how long to con-
tinue working can all affect your financial outcome. These
Question 1: funds can have generous entitlements, but they may also
My spouse and I are looking at ways to boost our super. have complex tax implications, especially if you’re entitled
How do spouse contributions and the associated tax offset to multiple benefits or have other superannuation. It’s also
work? important to understand how the fund interacts with your
Spouse contributions can be a great way to build your broader retirement strategy. Because the rules can vary
partner’s superannuation and potentially benefit from a tax widely between funds, seeking advice is essential.
offset. If your spouse earns less than $37,000 a year, you Your financial adviser can help you evaluate your op-
may be eligible for a tax offset of up to $540 when you tions, model potential outcomes, and determine the best
contribute to their super. This offset reduces as their income strategy to maximise your entitlements while managing tax
rises and cuts out once they earn $40,000 or more. The con- and longevity risks.
tribution itself is treated as a non-concessional contribution,
so it counts toward your spouse’s contribution cap. This Question 3:
strategy can help you grow retirement savings as a couple, I’ve recently inherited some money. What are the first steps
especially if one partner is out of the workforce or working I should take to make smart decisions with it?
part-time. Inheriting money can be both an emotional and finan-
Like all strategies involving superannuation and cial turning point, and it’s wise to approach the next steps
taxation, it’s important to consider your broader financial carefully. Rather than making quick decisions, the first thing
plan and check your eligibility. Your financial adviser can to do is assess your overall financial position. You’ll want to
help you assess whether this approach suits your understand exactly what you’ve inherited; whether it’s cash,
circumstances and how to implement it effectively. property, shares, or superannuation, and the tax implica-
tions of each. Once you have a clear picture, you can begin
Question 2: exploring how the inheritance fits into your financial goals.

I’m getting close to retirement and have a defined benefit This might include debt reduction, investment, retirement
superannuation fund. How do I know if I’m making the planning, or estate planning of your own.
most of it? A financial adviser can help you prioritise, make sense of
Defined benefit (DB) superannuation funds can be the technical considerations, and develop a plan to use the
valuable, but they also work very differently from standard inheritance wisely and tax-effectively.
accumulation-style funds. Your final benefit is generally

Future Wealth Planners

Level 1, 176 Main Street
Osborne Park WA 6017

P.O. Box 16
Osborne Park WA 6917

P: 08 9207 3844
W: www.fwplanners.com.au
E: clientservices@fwplanners.com.au

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