Retirement means different things to everyone. It may be a definite point in time when you stop work, and begin a new phase of life.
Or it may be a gradual process where you vary working hours as your priorities shift. You might decide to leave employment and return to part-time work later.
How much money you’ll need to retire
Most people can now expect to live well into their 80s. This means if you stop working in your mid-60s, you’ll need retirement income for 20 years or more.
Making a retirement plan can help you manage your finances, and cope better as your life and priorities change.
Talk about your retirement priorities with a partner, colleague or friend.
Get professional advice, if you need it. Your super fund, a licensed financial adviser or a Services Australia Financial Information Service (FIS) officer can help you.
Where your retirement income can come from
Find out when and how to access your super, then explore your retirement income options.
Your main options are:
- an account-based pension
- an annuity
- a lump sum, or
- a combination of these.
Or you could consider a transition to retirement strategy. Speak to us if you need more information about how this strategy works and if it might be suitable for you.
Check if you’re eligible for the Age Pension, government benefits or seniors concessions. See how tax on retirement income works and contact us for help if you need it.
Weigh up the pros and cons if you’re considering downsizing your home, or a reverse mortgage or home equity release product.
Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at https://moneysmart.gov.au/retirement-income
Important note: This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. Past performance is not a reliable guide to future returns.
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