Retirement will be a major financial turning point for most people. You no longer have a regular income from a full-time job so you have to plan to make the most of your superannuation, other money you have set aside and the Age Pension if you are eligible.
People moving into retirement want to be free of financial worries and want to enjoy a comfortable retirement.
To achieve this, you need to consider the following:
A budget planner is a useful tool to help you determine an annual amount.
You may also want to consider getting financial advice to assist you with your retirement plans. Read more about Water Corporation Superannuation Plan’s preferred financial planners - Western Financial.
The ASFA Retirement Standard shows the annual budget needed to fund either a comfortable or modest standard of living in retirement.
The most recent national figures released for the ASFA Retirement Standard (September Quarter 2015) show the budgets for those aged around 65 are the following:
|Modest||$23,695 a year||$34,090 a year|
|Comfortable||$42,962 a year||$58,915 a year|
Note: The figures in each case assume that the retiree(s) own their own home and relate to expenditure by the household. This can be greater than household income after income tax where there is a drawdown on capital over the period of retirement. Single calculations are based on female figures.
Modest retirement lifestyle –
Better than the Age Pension, but still only able to afford fairly basic activities.
Comfortable retirement lifestyle –
Enabling an older, healthy retiree to be involved in a broad range of leisure and recreational activities and to have a good standard of living through the purchase of such things as; household goods, private health insurance, a reasonable car, good clothes, a range of electronic equipment, and domestic and occasionally international holiday travel.
Find out more about the Retirement Standard on the ASFA website.
This will depend on your personal circumstances. By delaying your retirement for a few years you could:
To assist in your decision, try the Moneysmart Retirement Calculator.
There are a number of options for your current super account when you permanently retire after your preservation age:
Make sure the super you have saved during your working life works for you in retirement by:
Retirement income products let you turn the super you've saved into regular income payments. But do choose the right sort of product, or you could end up losing valuable government benefits or paying unnecessary taxes. This can be complicated, so take your time, read more and consider getting professional advice.
The Water Corporation Superannuation Plan has two Income Stream products:
A Pension is an account based income stream that allows you to change the level of income you receive each financial year (within the Commonwealth Government's limits), so it can adapt to your changing financial circumstances. You also retain access to your funds and can make lump sum withdrawals at any time. A Pension provides tax effective income for as long as there is money in your account.
Transition to Retirement (or Phased Retirement) allows you to access your superannuation benefits, once you have reached preservation age, in the form of a non-commutable income stream without having to retire or reduce your hours of work.
A non-commutable income stream cannot be converted into a lump sum payment.
Once a condition of release is met (such as those described above), your Transition to Retirement account will automatically switch to a Pension arrangement.
Read more about the Products available with Water Corporation Superannuation Plan.