Much has been said recently about how much superannuation you need to live a comfortable retirement, but the reality is that it’s more about making the most of what you have.
If you’re planning to retire in the next couple of years, the chances are an Australian Government Age Pension will feature in your calculations of how much money you will have to live on for the next 20 or 30 years. Of course, how much Age Pension you receive will depend on how much income you derive from investments and the assets that you hold.
The traditional approach to retirement income is to simply take the balance in your super account as a lump sum and invest as you choose, either in shares, property, etc., or placed in an interest-bearing savings account. By using this method, you may receive an Age Pension as a top up, or be forced to rely on an Age Pension when your money runs out.
An alternative approach, and one that may make more sense, is to use your superannuation to provide an income. If your income stream is correctly structured, you can receive a long-term stable income, an Age Pension and the associated benefits, such as a Pensioner Concession Card.
Being able to calculate how much income you can expect to receive in retirement is vital to ensuring that you’re making the correct financial decisions for your future. By taking just a minute or two to enter some basic details, such as your date of birth, homeowner status and expected income from your retirement income stream into AustralianSuper’s Age Pension (Centrelink) Estimator, will provide you with an indication of how much, if any, Age Pension you can expect to receive. This can form the basis of any discussions you have with a financial planner to ensure you get the best outcome from the` superannuation you have accumulated.
Matt McCubbin, a financial planner who advises AustralianSuper members, said, “Even if your super balance seems quite modest, it can make a worthwhile contribution to your retirement income when it’s combined with the Age Pension. People retiring with even $50,000 in their super accounts should take heart – the super savings they’ve accumulated could give them options they may not have realised.
Interested in finding out how a Choice Income account can help you to maximise your retirement income? Visit AustralianSuper for more information.
This article has been sponsored by AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788. The views expressed are those of YourLifeChoices. For more information, please visit www.australiansuper.com/yournextlife
