Client Profile:
Mark and Julie, both in their early 60s, were preparing for retirement after decades of running a successful trade business. Mark had been self-employed as a carpenter, and while they were disciplined savers, they had never contributed significantly to superannuation. With limited understanding of how super worked – and a deep mistrust of it – they chose to rely on traditional savings.

The Challenge:
The couple had accumulated $800,000 in a term deposit, but very little in super. As retirement approached, they were concerned about:

• Low returns from their term deposit
• Limited tax efficiency
• How to generate reliable income without eroding their capital too quickly

They wanted a solution that was simple, secure, and aligned with their values – but they were hesitant to engage with superannuation due to past misconceptions.

My Approach:
I began with a series of education sessions to demystify superannuation. I explained:

• How super is structured and regulated
• The tax advantages it offers, especially for retirees
• How it can be tailored to suit their risk comfort and income needs

Once Mark and Julie understood that superannuation wasn’t a government-controlled black box, but a flexible and tax-effective retirement vehicle, their confidence grew.

The Strategy:
I developed a plan to gradually move a portion of their term deposit into superannuation through:

• Non-concessional contributions, taking advantage of bring-forward rules
• Concessional contributions, where appropriate, to reduce taxable income
• Setting up an account-based pension, allowing them to draw regular income in retirement with minimal tax

To support their peace of mind, I also recommended keeping a portion of their funds in a high-interest savings account for short-term needs.

The Outcome:
Within the first year:

• Mark and Julie saw improved returns and significant tax savings
• They felt empowered by their new understanding of superannuation
• Their retirement plan became more structured, sustainable, and aligned with their lifestyle goals

Key Takeaway:
Education is key. For clients who’ve avoided superannuation due to misunderstanding, the right guidance can unlock powerful benefits and restore confidence in their financial future.