Ep22 Rachael Ooi

From her beginnings as a hair dresser and makeup artist, since 2013 Rachael Ooi has climbed her way up the Financial Planning sector to now being a Financial Planner.

With copious awards for her Professional Standards and innovation within the industry, Rachael chooses to see the creativity within financial planning by assisting her clients in shaping and designing their financial future. A little on the quirky side, she continues to champion the financial advice industry to provide affordable, compliant advice that is in her clients best interest.

 In 2021, the ABC’s Australia Talks national survey1 found that 62% of all Australians (of all ages) worry about retirement income (even before they retire). In fact, it was the second major concern after climate change. They also found 60% of us consider being able to retire comfortably a personal problem, while about 90% consider it a national problem. This level of concern about retirement income (and the fact that it rated second after climate change), indicates the significance of this issue nationally.

Other research conducted by National Seniors Australia and Challenger 2 found that pre-retirees were worrying more about running out of money than those who had retired. The research reported that retirees tended to adjust to what (savings) they had, as they knew that super is for spending in retirement. So perhaps (in some cases) the fear doesn’t match the reality

Question 1. In the lead up to retirement, what are your top 5 financial tips to consider to ensure a smooth transition to retirement?

1. Consider when you retire ie. Beginning of FY/ end of FY (tax consequences)

2. How do you take leave entitlement, including long service leave and annual leave

3. Understand your cash flow needs and ensuring you have sufficient reserves.

4. Consider how you are going to spend your time in retirement and associated costs ie. Travel, golf memberships, craft groups, fitness and hobbies

5. Maximising tax free and low tax environments

Question 2. What are ways to manage the anxiety associated with no longer drawing employment income, rather drawing down on your long term retirement savings? What happens in the event there is a market crash, either directly before or directly after you have just retired?

Question 3. When should you start preparing for you retirement and how much am I going to need?

Question 4. What are some pros and cons of gifting money/helping family out financially?

Question 5.  What are some of the common traps you see from retirees fall into?

Question 6. What are recent changes to Centrelink that may impact retirees?

Question 7. What are the positives and negatives in downsizing your home after the age 55?

Can we add in a round of “fact or fallacy”

• You cant have more then $100,000 in your bank account and still receive the age pension payment- Fallacy

• Your home is counted in the assets test – fallacy

• You can gift $10,000 PA or $30,000 over 5 years as still retain age pension -fact

• Superannuation pensions are taxed before you reach age 60- Fact

• There is no tax on superannuation in the event of your death-fallacy (depending on who inherits)

• You cant get money into superannuation after age 65-fallacy

• Superannuation is covered under your will – fallacy

• You are required to draw a min pension each year depending on your age-fact

Lets look at * the traps that people fall into regarding spending the nest egg. * Pros and cons of financially ‘helping the adult children *Making super work for you before you leave employment  * Relying on super and understanding changes that may or may not affect retirees * where to get information and more importantly where not to get it.