How much will you need?
You’ll need approximately 60% of your final pre-retirement salary each year for what could amount to 20 years or more. A financial adviser can help you evaluate exactly how much you'll need and how you're tracking to reach that goal.
Build your super after 55
If you’re over 55 and want to build a bigger nest egg without reducing your current income, look at making pre-tax salary contributions into your super while moving some of your super into a transition to retirement pension. By doing this you can draw a regular income from your pension to replace your reduced salary.
Watch our Managing Retirement Risks - 5 Part Series to find out more about key retirement risks for pre-retirees and retirees and how to address them. Presented by Professor Moshe A Milevsky.
Protect your balance
As you get closer to retirement, market movements can have a greater effect on your super balance. That’s why it’s important to protect your balance from negative movements in the market.
MLC MasterKey Investment Protection protects your capital or income against market downturns.
Accessing your super – cash payout or income stream
Starting an income stream investment (such as an account-based pension) within super, rather than taking your savings as a lump sum, can be much more tax effective. This is because:
- no lump sum tax is paid when the benefit is used to start the income stream
- no tax is payable on investment earnings in the fund
- between age 55 and 60, any taxable income payments attract a 15% tax offset; and
- when you reach age 60 you can receive unlimited tax-free income stream payments without having to include them in your annual tax return. This could also reduce the tax payable on your non-super investments.
If you're over 55, you can even access your super as an income stream without retiring, through a transition to retirement pension.