Retirement Income

A common retirement concern is how to produce an income for the rest of our lives as the main thing that we lose in retirement is the ability to earn wages or salaries.

Whether you’ve built up savings from superannuation, investment property, equity in your home, money in the bank, or an inheritance, you will need to turn this capital into an income stream which is convenient, secure and tax-effective.

You may also have other objectives in retirement such as gaining the most out of Centrelink and the Age Pension, or the Veterans’ Affairs Pension, in addition to estate planning issues.

Choosing a retirement income product
As you approach retirement, you need to decide how to use the super that you’ve saved to help support yourself in retirement. Super funds and life insurance companies offer many different types of financial products that let you draw down your superannuation savings in an orderly way to suit your lifestyle.

For an ever-increasing number of people the answer to retirement income lies in the form of income streams and, in particular, superannuation allocated pensions, term allocated pensions and other complying annuities.

Where do you go to get one?
Most life insurance companies and financial services organisations provide these different types of income stream products. You can approach these organisations directly, at which point they will usually direct you to one of their financial planning groups, or you can seek the advice of an independent financial planner. You should always seek professional advice. It is very dangerous to attempt to set yourself up with an income stream without professional consultation, particularly professional tax advice.

How do you set one up?
1. Decide on your retirement date or year.
2. Ensure that you have a clear and defined set of goals and objectives (e.g. required income per year, investment objectives, access to capital, Centrelink etc).
3. Do your research! Most providers’ websites have additional information on their income streams.
4. Arrange an interview with an independent financial advisor.
5. Work with your advisor to use your retirement savings to the best effect.

Older Aussies forking out billions in loyalty taxes

Although it has the word 'tax' in it, it has nothing to do with the ATO.

How much can you confidently spend in retirement?

Challenger explains how to calculate whether your retirement savings will last the journey.

Surprising ways retirees can waste their savings

Avoid these costly mistakes.

'Secret plan' to force retirees to use their home to fund retirement

Treasurer hints at plans to cut super and force retirees to use their home for funds.

Why middle-income Australians are the big losers in retirement

Post-pandemic, big ideas abound to increase equity, wages, and wealth in retirement.

Australia pension market up 11.3% in 20 years, making it world's best

But that doesn't mean your fund averaged a return of 11.3 per cent over 20 years.

Australians with $1m in super less worried about retirement funding

Research shows two-thirds of pre-retirees worried about how they will fund retirement.

Aussies planning to rein in unnecessary spending in 2021

Pandemic pushes more Australians into being more engaged with their finances.

What to consider before switching super funds

The new year has arrived and now might be the time to consider switching super funds.

Angry retirees send thousands of letters to Reserve Bank boss

The RBA has a problem - and it's you …

The way forward in this low interest rate environment

Noel Whittaker says switching banks regularly for an extra 0.5 per cent is a mug's game.

How to give retirees the confidence to spend

An efficient retirement spending system is still a work in progress, writes Andrew Boal.

1 2 3 4 5 6 22 23



Back to Top
Click to Hide Advanced Floating Content