Navigator is one of the first platforms to provide investors with access to the Federal Government's new Transition to Retirement' initiative introduced recently on 1 July.
Navigator is one of the first platforms to provide investors with access to the Federal Government's new "Transition to Retirement" initiative introduced recently on 1 July.
Effectively, investors who are over 55 years taking advantage of this new initiative may significantly increase their income and minimise tax liabilities.
For example, with Navigator an investor working part time can salary sacrifice into super paying 15% contributions tax with no surcharge. Then transfer the assets intact from super to a pension phase and pay no Capital Gains Tax, and draw down a non-commutable allocated pension payment and enjoy a 15% tax offset to replace the income the sacrificed into super.
Group director products, marketing and public affairs, Rob Donaghy, said: "For some investors in the higher marginal tax brackets, the benefits could be substantial and may give them greater sustainability as they work towards retirement."
Navigator's response to the "Transition to Retirement" initiative has been made in our range of products and has been available since 1 July in:
- Navigator Personal Retirement Plan - Super and Pension Services
- Navigator Super Solutions - Lump Sum Option and Allocated & Growth Pensions
It will also be available in our new Navigator Access Super and Pension product which will be launched in August 2005.
A key feature of these Navigator products is that they also receive favourable pension tax concessions, including no tax payable on investment growth and earnings.
"Transition to Retirement" is simply aimed at making it easier for people over 55 years to continue working, albeit on a part time basis, and have access to their superannuation. It provides the option to fully or partially roll over superannuation benefits into an allocated pension or a complying term allocated pension.
Previously, individuals aged 55 and over could only access their superannuation when they retired or limited their working hours to a maximum ten hours a week.
A steadily growing group of investors are likely to benefit from the "Transition to Retirement" initiative. According to the Australian Bureau of Statistics, there appears to be an increased tendency for some men, particularly those aged between 60 and 64, to ease into retirement though a period of part time employment.
"In the past people continued working full time because of the fact that even if they only wanted to work three days rather than five it would mean they were significantly worse off financially," said Rob.
"Lack of access to superannuation may also force people to choose between working part time and receiving a reduced income or not working at all and having access to their superannuation.
The "Transition to Retirement" initiative is aimed at people delaying retirement and working part time and continuing to receive superannuation guarantee payments plus make any personal contributions," said Rob.
For further information on "Transition to Retirement" please contact your financial adviser.
-ends-
For further information please contact:
Simon Morgan
Group General Manager Public Affairs
Phone: (03) 9829 8892
Mobile: 0407 966 632
Notes to editors:
- Globally, Aviva Australia is part of Aviva plc, the world's fifth largest insurance group, the largest insurer in the UK and one of the top five life companies in Europe. Aviva was formed in May 2000 through the global merger of CGU plc and Norwich Union plc.
- Aviva is a leading provider of life and pensions products to Europe and has substantial businesses elsewhere around the world. Its main activities are long-term savings, fund management and general insurance. It has premium income and investment sales from continuing operations of A$78 billion, and more than A$624 billion of assets under management (as at 1 July 2004). The group has more than 56,000 employees and 30 million customers worldwide. Aviva is a leading provider of life and pensions products to Europe and has substantial businesses elsewhere around the world. Its main activities are long-term savings, fund management and general insurance. It has premium income and investment sales from continuing operations of A$78 billion, and more than A$624 billion of assets under management (as at 1 July 2004). The group has more than 56,000 employees and 30 million customers worldwide.
- The information in this document reflects Norwich Union Life Australia Limited's (NULAL) and NULIS Nominees (Australia) Limited's ('NULIS') understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. The information given in this document is of a general nature and has not taken into account the investment objectives, financial situation or particular needs of any particular person and it is not a substitute for professional advice. Applications to invest in a financial product issued by Aviva, or any of its related entities, must be made by completing the application form attached to the applicable Product Disclosure Statement ("PDS"). A PDS is available from Aviva or your financial adviser. Before making an investment decision on the basis of the information above, a prospective investor needs to consider, with or without the assistance of a professional adviser whether the information is appropriate in the light of their particular investment needs, objectives and financial circumstances.