Grow your retirement income

In retirement, every dollar counts and it is worth exploring different strategies to grow your retirement income. We show you how.

Use your super wisely

If you’re about to retire or are in retirement, it can be tempting to take your superannuation as a lump sum payment. However this means taking money out of a tax-friendly environment and potentially placing it in investments that could attract tax at higher rates.

An alternative is to use your super savings to purchase a retirement income stream called an ‘account based pension’ or allocated pension. The earnings of an account based pension are tax free and you enjoy a regular source of cash in much the same way your wage or salary was paid during your working days.

Review your super investment mix

If you choose to leave your super savings in the superannuation environment, it is important to review the way your super is invested at least annually. It can be tempting to switch all your super to low risk investments but without some exposure to higher risk ‘growth’ assets like shares and/or property, your super savings might not benefit from potential capital growth.

Consider age pension entitlements

Depending on your assets and income, you may be entitled to receive a full or part-payment of the age pension. Even a small part-payment could see you entitled to a range of concessions including discounts on council rates and other benefits.

If you are a home owner, your family home could be your most valuable asset – worth more than even your superannuation. Your home equity can provide a potential source of funds in retirement and you may not have to sell up or move in order to benefit from that equity. 

Think about using home equity

Your financial adviser can discuss possible options to access home equity in retirement.

Next: Adding more to your retirement savings: is it worth it?

Adding more into super is not only a good way to invest your income, it also helps your retirement savings grow so that when you do retire, your money will still be worth something.

A comfortable lifestyle means different things to different people. Use our calculator to work out what lifestyle you want in retirement. 

While saving for retirement can seem somewhat daunting, there are a few simple strategies to use when planning your best financial future.
Longer life expectancies mean you could be in retirement for 20, maybe 30 years. We explain how to make your retirement funds last the distance.
Are you afraid you’ll never be able to retire? Despite the news headlines, a comfortable retirement might not need a balance of $1 million. You could retire with less.

This information is current as at 15/08/2016.

This information has been prepared without taking account of your personal objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs.

This information provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.

The tax position described is a general statement and is for guidance only. It has not been prepared by a registered tax agent. It does not constitute tax advice and is based on current tax laws and our interpretation. Your individual situation may differ and you should seek independent professional tax advice.