Income for Life: Turning Super into a Paycheck
Superannuation isn’t just about saving a lump sum – it’s about turning that money into a reliable income stream when you stop working. Yet research shows that 65% of pre-retirees don’t even know if their fund offers retirement income products.*
From Lump Sum to Paycheck
When you retire, your super can be accessed in two main ways:
- Account-based pensions – draw a regular income, with flexibility to adjust.
- Annuities/lifetime income streams – guaranteed payments for life.
Pros and Cons
- Account-based pensions: Flexible, tax-free after 60, but risk of running out.
- Annuities: Certainty and peace of mind, but less flexibility.
Final Thought
Retirement is not just about having enough – it’s about feeling secure. The right income strategy helps provide that security.
References
- TAL. What I Wish I Knew About Retirement: Whitepaper, 2024.
** TAL. Retirement Whitepaper: Income Certainty Research, 2024.
Disclaimer: This information is of a general nature only and does not constitute advice. It has been provided without taking account of your objectives, financial situation or needs. Because of this, we recommend you consider, with or without the assistance of a financial adviser, whether the information is appropriate in light of your particular needs and circumstances. Hendrie Financial Strategies is a corporate authorised representative of the Madison Financial Group Pty Ltd, Australian Financial Services License No 246679, ABN 36 002 459 001.
