Alternative to Super
Superannuation is a tax effective way to save for retirement but for many clients, Superannuation alone is not enough. Super has its limits, such as not being able to withdraw funds until preservation age, limits to tax concessional contributions and restrictions on investing lump sums, such as inheritances, if you have retired and are no longer working. The KeyInvest Life Events Bond can complement and enhance your retirement savings.
- No work test or contributions caps. You can contribute any amount each year subject to the 125% rule
- Access to your funds at any time by lump sums or regular withdrawals
- Ability to nominate beneficiaries and proceeds are tax free on death
Helen and Drew, both aged 48, have received a $200,000 inheritance from Helen's Dad's Estate. They would like the option of retiring early and decide to invest $100,000 into their Super and $100,000 in a KeyInvest Life Events Bond. Assuming a 5% pa return on their Life Events Bond over a period of 10 years, they would have $162,889 in savings. Although they cannot access their Superannuation for another two years (age 60), they can withdraw over $80,000 pa to fund their early retirement until their Superannuation is accessible.