Over Sixty Winter 2022 Digital

WINTER 2022 | OVERSIXTY.COM.AU 16 YOURMONEY to other contributions such as the non- concessional contributions and for a couple, it allows them to contribute up to $600,000 to super under the downsizer provisions. As is typical with most super contrib- utions, significant rules apply to downsizer contributions, which if not abided by, will lead to breaches and significant penalties. These include such issues as the home must have been owned for at least ten years, it must be free of capital gains tax liabilities and the contribution has to be made within 90 days of settlement. House boats and caravans are excluded. These changes are a significant benefit for anyone, particularly self-employed people, who have reached retirement age and find their superannuation balances are lower than they might like and are still paying tax on assets held outside super. Together, these changes allow a couple under age 75 to contribute some $660,000 in non-concessional contributions as well as some $600,000 in downsizer contributions and so potentially boost a couple’s combined balance by more than $1.2 million within a single year. Following years of sharp increases in the value of many family homes around Australia, these changes make it even more attractive for those moving into retirement to unlock some of this value and use it to support themselves in retirement. Bymaking these changes, theGovernment is allowing those in retirement to both boost their superannuation balance and effectively slash, or for many, remove altogether their tax obligations on savings held outside super. This is because once assets are moved within superannuation and are used to support an account-based pension, they effectively become tax free, both in terms of any capital gains as well as on any earnings they generate. The pension generated is also tax free. It also means if these funds are invested in listed companies paying high-yielding, fully franked dividends, they will also be able to take full advantage of the franking credits and receive them as tax refunds paid as cash to their superannuation accounts, further boosting their overall returns. For many retirees, these changes will provide a much-needed avenue to boost their retirement incomes, by moving retirement savings sitting outside super into superannuation and to take full advantage of the tax benefits of doing so. Finally, employers will need to pay superannuation guarantee contributions to low-income earners being paid less than $450 a month, which for many in retirement working part-time will be a further boost to their retirement savings. NOTE: This is general advice only. You should seek advice specific to your circumstances. For example, one day he took a tour to see the penguins at Phillip Island. The girls were overwhelmed with excitement when they returned to the bus – at first he thought it was the scenery, but it turned out they’d been standing next to Chris Hemsworth. On another occasion, he took a group on a whim to see the Brighton Bathing Boxes. Within minutes, a 19-year-old client was crying inconsolably. When he could finally talk, he explained that his artist mother had died 18 months previously and her final painting – of the bathing boxes – hung on his living roomwall. “Every morning when he woke up and walked into the room he would look at it and say good morning to her, and every morning hewould ask himself whether this place really existed. I had the privilege to show it to him in real life – every colour exactly the same.” Fred has no plans to stop working. In fact, he says working as a tour guide has helped many aspects of his life as he’s aged. “I’m getting everything that an elderly personneeds tokeepmentally andphysically fit. I easily do 10,000 steps each day – quite often I’m ahead of the younger ones – and there are so many other benefits. “It’s not about the money, it’s about the meaning. It’s validation. How many people do you know who are excited because they have to go to work the next day? I can’t imagine doing anything more rewarding.” NEXT ISSUE: Meet Elise, the former architect turned international model at age 65! Do you have a great ‘unretired’ story? Email us at newspaper@oversixty.com.au HELEN SIGNY YOUR MONEY F red Garcarczyk didn’t even know he’d applied for the job that ended up changing his life. At 63, the one-time singer and master of ceremonies had been looking for work for six months, but at his age no-one was reading his resume. His daughter, Jade, saw an advertisement for a tour guide in their home city of Melbourne and applied on her father’s behalf. The next day, he landed the job. “If I had a dollar for every time I’ve thanked my daughter, I’d be a rich man,” says Fred, who has beenworking for Oceania Tours and Safaris for eight years. “I now have friends all over the world, I’ve been invited to people’s weddings, when I was in London one of my visitors travelled for three hours by train just so they could spend an hour and a half withme. It’s been themost amazing thing.” All over Australia, people are reaching retirement age – and then getting a job. The Ageing in the Workforce 2021 report, a survey of more than 5,000 Australians aged over 50 conducted for Australian Seniors, found that more than three-quarters wanted to continue working indefinitely. Hitting career goals post-retirement From page 1 The report found the Covid-19 pandemic had led many to re-evaluate the role that work played in their lives, and nearly 90 per cent of respondents were planning to re- enter the workforce. Reasons for joining the ranks of the “unretired” varied, and included the need to boost finances, missing their job, to combat boredom, or to find social connection. Rachael Palmer, an organisational psychologist with workplace consultancy Transitioning Well, says enjoyable work is good for us. It provides a support network, routine, sense of purpose and meaning, and reduces financial stress. The key is to find something you’re passionate about and to work in a role in which you feel supported, she says. “Think about your passion, what you love to do. It doesn’t matter what you have done your whole life, if you pursue something you’re passionate about you will be a more interesting person – and be more likely to get the role,” Rachael says. Fred, who is now 71, says that it’s the experiences he gets to witness every day that make his job so worthwhile. “If you pursue something you’re passionate about, you will be a more interesting person – and be more likely to get the role.” “Significant rules apply to downsizer contributions” Fred says the experiences he enjoys every day make his job so worthwhile. Photos: (left) courtesy Fred Garcarczyk; (main and cover) Tim Allen. YOUR MONEY  Super changes bring tax relief for retirees From page 15 Finding a post-retirement job not only boosts the bank balance and staves off boredom – it can change your whole life 49% of Aussies aged 65 have retired, down from 2018 when 60% were retired *COTA Federation’s State of the (Older) Nation 2021 report To win one of 10 copies of Patricia Howard’s book The No-Regrets Guide to Retirement , go to www.o60.me/contests WIN! Fred Garcarczyk, 71, has no plans to stop working