Mum and Dad should see a financial planner by age 50 and pay off their mortgage in full by then as well. They can salary sacrifice a large part of their salary after 50 and sell their home to downsize at 60, investing the difference into superannuation. After 60, they can convert their super into a non-commutable pension and keep working part-time to enjoy tax-free income from regular pension payments and tax-free returns, paying only 15% tax on income up to $35,000. Seeing a financial adviser is recommended due to current taxation system reviews.

1. GENC3003Personal Financial Planning Andrew Hingstonandrew.hingston@unsw.edu.au Unit 18: Retirement strategy

3. 4 Continue working part-time as long as possible rather than permanently retiring! After retiring, convert non-commutable pension into ordinary Allocated Pension and enjoy tax free returns and tax free income! Note: The taxation system is currently under review by the Henry Commission Hence … it’s good to have a financial adviser!