{"id":15483,"date":"2024-02-19T08:29:18","date_gmt":"2024-02-18T21:29:18","guid":{"rendered":"https:\/\/bethere.p4.clientcommunity.com.au\/staging\/insights\/planning-your-retirement-income\/"},"modified":"2024-02-19T08:29:18","modified_gmt":"2024-02-18T21:29:18","slug":"planning-your-retirement-income","status":"publish","type":"post","link":"https:\/\/bethere.p4.clientcommunity.com.au\/staging\/insights\/planning-your-retirement-income\/","title":{"rendered":"Planning your retirement income"},"content":{"rendered":"
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Understanding your retirement income options<\/h3>\n

How you organise your retirement income streams can make a huge difference to your quality of life. Here are some options you might want to consider.<\/p>\n<\/p>\n

What will you do with your super when you retire?<\/strong><\/p>\n

You have plenty of flexibility as there\u2019s a wide range of options inside and outside superannuation. But this is a complex area, with\u00a0tax and government entitlement implications, and your needs may change over time. It is always a good idea to talk to a professional financial adviser about things like tax on superannuation withdrawals before making any significant decisions.<\/p>\n

Accessing your superannuation<\/strong><\/p>\n

When you reach your superannuation access age (or \u2018preservation age\u2019) and you\u2019re eligible to withdraw your super, you have the option to leave it where it is and continue adding to it. If there\u2019s been a downturn in the market, you might want to wait for it to improve. If you do, you could pay more tax on your earnings than if you invested the money in an income stream.<\/p>\n

Retirement pension fund<\/strong><\/p>\n

Most people transfer their super balance into a\u00a0pension account, as your pension and any earnings from it are usually tax-free after you turn 60.<\/p>\n

Pension accounts pay a regular income to you on a monthly, quarterly, half-yearly or yearly basis. You can nominate the pension payment amount and vary it at any time. The only stipulation is that you withdraw at least\u00a0the minimum amount specified by the government.<\/p>\n

It\u2019s important to understand that unless you have a guaranteed product, you may outlive your pension account. The balance can increase or decrease in response to market performance and other variables.<\/p>\n

Investing in an annuity<\/strong><\/p>\n

Another option is an\u00a0annuity, which gives you the peace of mind of knowing exactly how much your retirement income will be and how long the payments will continue. An annuity is paid by a life insurer in return for a lump sum, from a super fund or other savings. Again, payments can usually be paid monthly, quarterly, half-yearly or yearly and you can receive them for a certain period or for the rest of your life.<\/p>\n

The main disadvantage is that your money is locked away, although there are now some products that allow you to make extra withdrawals.<\/p>\n

Accessing superannuation<\/strong><\/p>\n

You can withdraw some or all of your super in one go \u2013 perhaps to pay off debts or invest elsewhere. It\u2019s important to\u00a0do your homework\u00a0before investing outside your super as your earnings might be taxed.<\/p>\n

Investments outside superannuation<\/strong><\/p>\n

There are many investment options for retirees outside super but many prefer to prioritise security. Diversification is very important as it can help to minimise your risk.<\/p>\n

Capital growth investments<\/strong><\/p>\n

Capital growth investments, such as property and shares, can rise and fall in value but over the long term they usually outperform other types of investment. This makes them important for increasing the time your savings will last. They can also provide retirement income streams. Your time frame is key with growth investments and you should be prepared to invest them for a number of years.<\/p>\n