Transition to retirement

Retirement is the time of life when you can relax and do the things you have always wanted to do. Careful planning can help ensure you are financially comfortable for this phase of life.

Before you retire

Prior to retirement, there are some important questions you need to ask yourself, including:

  • What do you want to do in retirement?
  • How much money will you need to do it?
  • Do you need a regular income?
  • Where will this income come from?
  • When can you retire?
  • How and when will you be able to access your super?
  • What Government support will you be eligible to receive?

Planning ahead can assist you in making the most of what you have and help you achieve financial security, reduce uncertainty and enjoy your retirement. 

There are many different options available to help fund your retirement. These include taking your super as a cash lump sum, purchasing an income stream product to give you a regular income or a combination of both.

A regular income in retirement

Account based pensions

An account-based pension is purchased with super monies and provides a flexible, tax-effective, regular retirement income stream. It is not guaranteed, however the payments are flexible and can be any amount over the minimum limits set by the Government. Any capital remaining upon death is distributed to your estate or dependants.

Annuities

An immediate annuity on the other hand is an investment of a lump sum, usually with a life insurance company, that provides a regular guaranteed income for a specified period.

The income will depend on the initial investment, frequency of payments and the prevailing interest rate. The income you receive is generally set at the time of investment and will not change.