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.

You don’t need $1 million for a successful retirement

Scott Pape: you don't need $1 million for a successful retirement.

Superannuation: securing an income in retirement

How to access your super may be the most important decision you'll face.

Beware the super-spruiker promising worry-free wealth

Super changes create a potential risk for those making the maximum top-up.

The ATO is targeting anyone who earns money from online sources

Australians are being warned that the ATO is tracking online sources of income.

Rethinking the role of cash in your retirement income

In an era of low returns, many retirees are questioning the value of cash investments.

Simple savings in retirement

these savings may seem simple but it's good to have a reminder.

Since when was the Age Pension a handout?

The Age Pension was introduced as a right for all - never a handout.

Age Pension boost or super top ups? Which would help pensioners more?

Should super top ups be scrapped in favour of an Age Pension or rent assistance boost?

Age Pension: can I be assessed as a single?

Peter would like to know if he can be assessed as single age pensioner.

Is it worth making a pension claim if income is too high?

Should Michael make a pension claim even though he'll fail the income test?

Asset thresholds – do I need to advise of any changes?

Here is clarification of how the asset threshold changes will be applied.

Age Pension: can I offset losses against other income?

Can losses from an investment property be offset against other income?

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