Retirement means different things to different people. For some, it’s a definite point in time when work stops, and a new phase of life begins. For others, retirement may be a gradual process where they vary their working hours as priorities shift, or perhaps leave employment and then return.
Whatever your path to retirement, one of the big challenges is how to pay for it. Planning ahead for your retirement years can make a huge difference to your retirement lifestyle.
The financial decisions of retirement are often complex. We can guide you through the social security, taxation and investment aspects and help you to reach your retirement goals.
Transition to retirement (TTR)
A ‘transition to retirement’ (TTR) strategy lets you access some of your super and keep working. If you’ve reached your preservation age (age 60) and still working, you can use a TTR strategy to:
- supplement your income if you reduce your work hours, or
- boost your super and save on tax while you keep working full time
Retirement income
Once you reach full retirement, your strategy for prolonging retirement income becomes paramount. Life expectancy is increasing and you could easily be relying on your income to last 20 years or more. It is critical to coordinate the taxation, social security and investment aspects in a carefully structured plan.
Annuity
An annuity, also known as a lifetime or fixed-term pension, gives you a guaranteed income for a fixed number of years, or the rest of your life. An annuity is less flexible than an account-based pension, with accessing the capital, however, you can be sure about your future income.
How an annuity works
You can use your super or savings to buy an annuity from a super fund or life insurance company. When you buy an annuity, you choose whether you want the payments to last for:
- a fixed number of years
- your life expectancy, or
- the rest of your life
There are a number of considerations to take into account when choosing an annuity. Our Financial Advisors believe in a mix of retirement income strategies to assist in meeting your needs. Contact us to find out how.