YOUR QUESTIONS

Yes — a government-guaranteed, CPI-linked lifetime super pension (around 130% of the average wage in the article) makes a big difference. With the estimated annual pension (~$70,000) and lump sum (~$200,000), plus your shares and rental income, you’re likely to have enough to maintain a simple lifestyle. The article estimates about $45,000–$50,000 a year from rent and dividends if mortgages are paid off. Still confirm your assumptions about mortgage payoff, rental levels and timing before finalising plans.

Compare your gross rental yield to similar properties in the area. The article notes the Coffs Harbour property is returning about a 2.9% gross rent, which appears below market unless it’s being used as a part‑time holiday rental. If it’s a normal investment let, check neighbouring listings and local agents to see whether you can increase rent or whether the low yield is explainable.

Keep making maximum concessional contributions where appropriate, but be cautious: defined benefit pensions often involve an employer notional taxed contribution (NTC) that is measured against the concessional cap ($25,000 a year in the article). If your NTC exceeds the cap (and you were in the fund on certain historical dates), the NTC may be treated as your concessional cap, which can affect additional salary‑sacrificed contributions. Talk to your super fund to check your specific position.

An NTC is the employer’s calculated contribution for members of defined benefit schemes where employer contributions vary year to year. The NTC is measured against the concessional contributions cap (quoted as $25,000 in the article). If your NTC is greater than the cap — and you were a member at certain dates — it can limit how much extra you can salary sacrifice without breaching caps. Ask your super fund to clarify your NTC and any limits.

Yes. The article recommends having salary paid into a mortgage offset account so spare after‑tax money builds up and reduces mortgage interest paid. This can be particularly useful when concessional super caps have dropped, leaving more after‑tax cash to use for offset savings and faster mortgage reduction.

Based on the article’s figures, you could expect an annual government lifetime pension of about $70,000 plus roughly $45,000–$50,000 from rent and dividends once loans are paid off. You’re also estimated to have a lump sum of about $200,000 and at least $100,000 remaining in shares after paying mortgages (given conservative returns). Use these estimates as a starting point and stress‑test them for different market and interest rate scenarios.

Holding the Sydney property for additional income is a reasonable option and is the plan outlined in the article. Whether to keep or sell depends on the rental market, tax implications, mortgage position and your income needs. Compare expected rental income (and yields) with the costs of holding the property and consider consulting your accountant or financial adviser before deciding.

Talk to your super fund if you have doubts about defined benefits or NTC calculations. The article also lists helplines: Financial Ombudsman on 1300 780 808 and pensions enquiries on 13 23 00. You can also send questions to the article’s adviser (George Cochrane) via the Personal Investment PO Box address if you want a published reply.