Maximising retirement savings
Question: I am 60 and currently in full-time work with a TRC of $130K. I have $600K in super and $600K in cash which is currently offsetting a $600K mortgage on a property worth $1.2M. I have other investments amounting to $50K. I also receive an indexed pension of $24K. My wife, who is 48, earns $70K. Should I be adding more than my current 9% to super, increasing my investments or is there another strategy to maximise my retirement savings?
Answer: At your age I'd certainly be contributing the maximum possible to super because such contributions lose just 15% whereas money taken in hand loses 38.5% in your tax bracket. This will also enable you to increase the amount you will have available to pay off your mortgage when you retire.
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