As they approach retirement many Australians start to worry about whether they will have enough money in their super to maintain their current lifestyle when they eventually stop working. This is not only a problem confined to people in their 50s; it is also a problem that all working Australians are becoming increasingly aware of as they are bombarded with information about how people are living longer and receiving less (or no) support from the Government in retirement.
Do you know how much you will need in your super to be able to live the lifestyle you are accustomed to throughout your retirement years? Not just the first five or 10 years, but for the rest of your life after you retire?
For most people the total of employer contributions received throughout their working lives will not come close to the amount they need: over $56,000 a year for a couple expecting a 'comfortable" retirement, according to the recent ASFA Retirement Standard. When you consider that retirement may last more than 20 years, the numbers soon start to add up.
One way to boost the long-term capital growth of super is to invest in property
, and by doing this through a Self-Managed Superannuation Fund
(SMSF) there are a number of benefits that can be achieved, including concessional tax rates.
"The responsibility of providing your financially secure retirement is now up to you", says Bill Savellis, Sydney-based financial planner and owner of www.thefinancialadvisor.com.au. "Buying or transferring property into an SMSF can be a great way to boost your retirement nest egg, but it is important to remember that this strategy isn't for everyone and to seek professional advice, because there are rules and regulations that restrict what you can and can't do with property owned by an SMSF."
Once a property is owned by an SMSF, there are also rules that relate to the use of that property. In short, the property cannot be used by you personally, unless it meets specific requirements. So, while your SMSF can lease an office or a warehouse to your business, you may need to shelve any ideas of buying your own holiday home on the coast using your SMSF!
For more information about SMSFs and investment properties, download the FREE eBook 'How To Buy Property Within Your Self-Managed Superannuation Fund'