Thinking about retirement? You might be wondering whether to take your SASS benefit as a lump sum or keep it in super. It's a common question, and the good news is you don't have to choose between all or nothing. The thing is, super is designed to be your financial partner for life, not just your working years. By understanding its ongoing benefits and flexibility, you can make informed choices about your retirement journey.
Retirement has changed
Gone are the days when retirement meant stopping work completely at 65 and taking all your super at once. These days, retirement is more about having choices to keep money in the Super system and see it grow– even if you intend to keep working in another role, consulting, or taking time to travel.
Take Sarah, who recently turned 63. "I thought I needed to take it all out of SASS when I retired" she says. "I was planning to take a big holiday and then work out what to do with the rest." But after speaking with a financial planner, Sarah discovered she could keep her money in super it just needed to be with another Super fund, making it easier to manage while still having the freedom to travel and work part-time as a consultant.
Why keep your money in super?
Throughout your working life, your super has been building a foundation for your future. But this is where it gets really interesting - in retirement, super can transform into something even more valuable. You can consider moving some or all of your super into a retirement income account by rolling over to a super fund that offers this product such as Aware Super. This account gives you regular payments as well as flexibility to take out a lump sum, while keeping your money invested and working for you.
Here’s how it works:
Expert management for life
Your balance continues to be managed by investment professionals who understand retirement's unique challenges. They focus on protecting your capital while aiming to grow your savings enough to maintain your lifestyle as living costs rise over time.
Built-in protection against rising costs
With people living longer, your money needs to last longer too. In 30 years, assuming an annual inflation rate of 2.5%, you might need more than twice as much money to buy what you can today. Keeping your money invested in super helps protect against this through continued investment returns and strategies specifically designed for retirees.
More money in your pocket with tax benefits
The government wants to help your retirement savings go further. That's why you won't pay tax on your regular income payments from super once you've reached retirement age. Plus, your investment earnings stay tax-free - meaning more money for the things that matter to you.
Supporting your retirement, your way
Super is designed to support whatever retirement looks like for you. When you retire from your career, you may want to pick up some consulting or casual work or work part time in a completely different industry or role. As long as you have resigned or retired from your SASS employer from age 60 you can access your SASS benefit while still working, and if your new employer can keep contributing to an accumulation account.
Plus, you choose how much regular income you receive and can adjust it when needed. Want to take extra for a holiday or renovations? You can. Need to reduce payments temporarily^? That's possible too. Meanwhile, your remaining balance stays invested, potentially growing to help protect against rising living costs.
When markets get rocky, super funds focus on protecting your savings - especially important when you're drawing a regular income. This helps shield your money during market downturns while still aiming for growth over time.
Making the transition
If you're approaching retirement, here are some steps to consider:
Think about what retirement means for you - whether that's stopping work completely, reducing hours, or maintaining some consulting work.
Talk to one of our financial planners about structuring your super to match your plans.
Look into different retirement income options - you might want to keep some money in an accumulation account for future work contributions while moving some into a retirement income account.
Remember, you don't need to make all your retirement decisions at once. Super gives you the flexibility to adjust your approach as your needs and circumstances change.