Noel tells Deirdre how best to tackle retirement issues

Should Deirdre put her earnings into super or shares or both?

Noel offers retirement strategy

Deirdre has worked hard to give her daughter the best education, but now it’s time to focus on her retirement plans. She asks Noel Whittaker how to structure her earnings.

Q. Deirdre
I have spent a heap of money in the past 16 years. I have no education but heaps of grit. I immigrated with a young daughter, worked hard and put any money I had into my daughter’s education. She is now a radiologist with no HECs debt. I’m now 61, so it’s very important I plan correctly for my retirement.

I will be receiving $100,000 from family in the UK and wish to either invest it in super and build on that, or in shares. I have a stable job three days a week and receive $600 per week from a family commercial property my brother controls.

Could you please offer some advice? My thinking is to probably shore up my super and sacrifice $200 per week into it, then set and forget until I’m 67 and eligible for an Age  Pension. I’m renting at the moment and will be for some time  – until I perhaps receive an inheritance to buy a home. I just wonder what is the best option. I’d really appreciate some trustworthy options.

A. Certainly maximise your contributions to super. You are allowed a total of $25,000 a year in concessional contributions but these include the 9.5 per cent compulsory superannuation contribution from your employer if you have one. For example, if your employer was contributing $5000 a year, you could contribute an extra $20,000 a year as a tax deduction. Just bear in mind concessional contributions incur a 15 per cent entry tax. I note your comments about buying a house in the future.

If you buy a unit or house, you will be turning an assessable asset in terms of Age Pension eligibility, that is, savings, into a non-assessable asset and this could increase your pension enormously. To do the calculations, go to my website and play with the age pension calculators.

Do you have a question you’d like Noel to tackle? Email us at

Noel Whittaker is the author of Making Money Made Simple and numerous other books on personal finance. His advice is general in nature, and readers should seek their own professional advice before making any financial decisions.



    To make a comment, please register or login

    5th Oct 2018
    If someone from my family would send me $100'000 I would not need advice, especially not when not at pension age. The advice from Noel is good but not too many of us are in Deirde's position. Wishing her good luck.
    5th Oct 2018
    My wife and I saved money for our retirement by not going on expensive holidays during our working life.
    To our thinking receiving money from the government in retirement was not the right thing.
    So we looked for safe investment and invested in NSW taxi plates one at a time. Finished up with 4 of them worth over 1.6 Million. This gave us a steady income in our retirement. Until an illegal operator came in named Uber. We never thought that a Liberal government would let us down that badly and allow them to operate legally. But they did. It was the then Roads minister, now premier that allowed Uber to operate legally followed by many more.Our income has dwindled and now the plates are virtually worth nothing.
    At the next election we will not vote for such a terrible gullable government that took Uber's promises for granted. But is there an alternative as Labour is just as bad.
    Old Geezer
    5th Oct 2018
    I'm afraid that was always going to happen one day in one form or another.
    5th Oct 2018
    Should have sold them earlier then B5YCK. The writing was on the wall for years before Uber received official sanction. The share economy was (and is) building for years with ever more options available, AirBnB, Airtasker, Ubereats, Spacer, Fiverr, etc are all examples of this with more coming everyday. All you need is an idea and a website!
    7th Oct 2018
    Ever heard of risk v return - Taxi Plates are a risky investment and if you put most of your investment in them that's another no no, spread your risks around. You can't blame the government - Uber is world wide.
    Old Geezer
    5th Oct 2018
    I can't see anywhere that Noel actually crunched the numbers to give his answer of this.

    Join YOURLifeChoices, it’s free

    • Receive our daily enewsletter
    • Enter competitions
    • Comment on articles