Where will the money come from?
You may find that getting an income in retirement is very different to the ‘earning a wage’ lifestyle that you’ve been used to. But with a little planning there are a number of ways to get a retirement income that will satisfy your situation.
Accessing your super in retirement
Or...you can do both
Many retirees take a lump sum to meet big expenses and arrange an income stream with the balance to get the tax advantages and provide a regular income over the longer term.
The two main structures of retirement income streams
The different types of pensions
There are two main types of retirement income streams available in the market today: account-based pensions and non account-based pensions.
2. Non account-based pensions
Non account-based pensions and annuities are designed to cover retirees’ longevity risk in the most efficient way. However, the income provided at any time is likely to be fixed on a pre-determined basis.
Examples of non account-based pensions and annuities include:
All of these can be purchased from a super fund using super money, or from a life insurance company using either super money or other savings.
There are various features and options available to suit your circumstances. These include:
How income streams are taxed
Super benefits paid from a taxed source (including a super fund) as a lump sum or income stream are generally tax-free when paid to people aged 60 or over. You can learn more about tax on super via ASIC’s MoneySmart.
Don't forget your other income sources...
Other info you might be interested in
We're here to help
If you want to learn more or need help with making a decision about your super, you can get simple advice over the phone or face to face. It’s included as a part of your membership so there’s no extra cost.