Client Success #13: Paying Off the Mortgage Before Retirement
Immediate value: $7,238 a year
We met a couple who were looking forward to retiring in the next few years and wanted to clear their debt before they did. We took the time to understand how they pictured retirement, then lowered their super fees and built a plan for the mortgage. They’re now projected to pay it off in about three years and go into retirement debt free.
Client Snapshot
- A couple approaching retirement
- A home loan still running
Their Goals
- Retire in the next few years
- Clear their debt before they retire
The Challenges
- Their mortgage was on course to run into retirement
- One partner’s super was carrying high fees
Our Strategy
- Moved both partners’ super to lower-cost funds with a stronger investment structure
- Set up a tax-effective contribution strategy for one partner
- Built a plan to have the mortgage paid off in about three years
The Outcome
They’re projected to pay off the mortgage in about three years and go into retirement debt free, with $7,238 a year of immediate value and a projected lift in both partners’ super.
- Immediate value
- $7,238 a year
- Super fees reduced
- $3,859 and $489 a year
- Estimated income tax saving
- $2,890 a year
- Projected mortgage payoff
- About three years
- Projected retirement uplift
- $58k and $99k
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