Futureproof Superannuation™ monetizes home capital to fund voluntary superannuation contributions whilst still working, instead of after-tax income – with no adverse impact to current pre-retirement cashflow and with no depletion of home equity.
Many Pre-retirees rely heavily on another pillar of retirement funding – superannuation. This third pillar of retirement funding will never be sufficient to fully fund retirement if relying solely on compulsory employer contributions.
Leaving yourself under-funded and with a plan to wait until retirement to sell the home (in order to downsize to free up home capital for investment or top-up a superannuation or pension account), is both risky and ‘too little to late’ due to:
- self-insured investment risk in retirement
- the superannuation transfer balance cap currently set at $1.6M
- the strategy occurs too late in life to succeed as a retirement plan as it fails to maximise the growth effect of compounding interest over the long-term
It is far better for a Pre-Retiree to make voluntary contributions during their 40-45 years of working life.
The non-concessional voluntary contributions cap of Pre-Retirees is currently $100,000 per annum.