Super is one part of a bigger income mix in retirement. For many Australians it’s the biggest part, so deciding what to do with it is important. Giving up work and living off your retirement savings takes planning.
Our retirement guide and checklist is a helpful place to start.
There are three main options when it comes to your super. You can choose one or a combination of all three to fund your retirement.
And in retirement, you have full control over what you can do with your super, which means lots of flexibility.
An account-based pension lets you withdraw a regular tax-free income from your super1. You can transfer some (or all) of your money from your super account into an account-based pension.
1From age 60 and over, generally no tax is payable on withdrawals from your super in retirement. Under age 60, tax may apply on withdrawals.
When you retire, you can withdraw your super as cash payments whenever you need to. You can withdraw from either your super account or an account-based pension.
Even if you’re at the age when you can withdraw your super, leaving some, or all in your super account is also an option. You may want to hold onto your insurance cover or need more time to decide what’s best for you.
With an account-based pension there’s lots of choice and flexibility. You can:
The Government Age Pension is paid to over 60% of Australians2, so chances are you could be eligible too. It can supplement your retirement income from super.
2Australian Institute of Health and Welfare, March 2021.
A transition to retirement account lets you withdraw some of your super savings as regular income while you’re still working. You can work less but maintain your current income and lifestyle.
In retirement, you’re drawing down from your super, and you aren’t adding to it. This makes choosing the right investment mix more important than ever. It can make a difference to how much income you have in retirement and how long it could last.
Nominating a beneficiary for your super and retirement savings is easy. Maintaining up-to-date beneficiary information means your super can be shared the way you intend, with less stress for the people closest to you, in the event of your death.
Join our experts as they break down super and finances into easy-to-understand topics through our live webinar education series.
Learn about the simple steps you can take today to help your super to go the distance.
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