Most of us cannot deny that we daydream about our lives post retirement. In those dreams, we may be cruising half way across the globe or just indulging the gardener in us. We dream of an easy life full of small nothings and crazy ‘somethings’. This is how we are programmed: we know we have to slog it out while we are part of the active workforce and get rewarded for it with a leisure-filled retirement.
So it may come as a rude shock if you do not find enough in your nest egg to retire peacefully and may be work through your 70s to make ends meet. The crux question then is- how much do you need to retire at 65? Let us find out. You will be surprised by a few stats and one trend in particular.
Cristiano Ronaldo is one of the most celebrated footballers of our times. Since Eusebio and Figo, no footballer has delivered as much for Portugal as this 31-year-old genius. While his exploits for his country are remarkable, it cannot still be compared to what he has done for his club, Real Madrid.
While the marginal tax rate can get as high as 46.5% for an individual, the rental income for properties purchased through your SMSF is generally taxed at a concessional rate of 15%. It gets even better when you talk about the CGT rebate. You may have to pay 10% in the accumulation phase and nothing in the pension phase. In comparison, rates run close to 23.25% for properties outside Super.