Summary
Retirement planning and how to start
There’s a lot to consider in the lead-up to retirement, and it can be hard to know where to begin. Whether retirement is still a few years away or just around the corner, we’re here to help you prepare with confidence. And having a plan in place can help you achieve your best possible outcome.
Simple super steps to help get retirement ready
5 ways to start planning your retirement
Retirement isn’t a ‘one-size-fits-all’ for everyone, so planning early can help build your confidence and allow you to think about the level of freedom and a retirement lifestyle you desire.
Here are 5 steps that can help you start planning.
-
1. Accessing your super savings
You can access your super when you reach 60 years of age and retire. The meaning of ‘retire’ depends on your age and how and when you finished work:
- If you’re 60-64:
- You stopped working permanently, or
- You stopped working for any employer after you turned 60
- If you’re 65 or older: you can access all your super, even if you’re still working.
To be eligible for the Government Age Pension, you must be at least 67 years of age. Also, you’ll need to meet eligibility requirements set out by the government before you receive your first payment.
2. Consider how much you’ll need for your retirement
Your current and future financial needs should be a key consideration in your decision.
Knowing the type of life you want in retirement can help estimate how much your retirement years may cost. Do you want to travel and explore the world or just your own state? Do you want to retire fully, or work part-time for a few years? Or maybe you have some home renovation plans and want to perfect your hobby.
3. Understand your retirement income options
There are 3 main sources of potential income in retirement: your super, the Government Age Pension and any assets you have.
Your super can keep working for you even when you reach age 60. Depending on your circumstances, whether you want to retire or keep working, you have options - such as keeping your super invested while you draw an income with an account-based pension. AustralianSuper’s account-based pension is called Choice Income.
The Government Age Pension is a regular fortnightly payment which can provide you with a supplementary income if your income is low, or you're partly or fully retired, and you meet the age, residence and eligibility rules.
Personal savings and assets, such as property and shares, could also help to fund your retirement so it’s good to understand the role your assets play in your retirement plan.
4. Check your insurance cover
While most super funds offer automatic insurance, it's important to make sure your insurance cover is still right for you.
Depending on where you’re at in life you might consider the following cover types:
- Income Protection
- Total & Permanent Disablement (TPD) cover
- Death cover (also known as life insurance)
5. Ask for advice if you need it
AustralianSuper offers access to a range of advice and support to help you plan your retirement. You can watch webinars from our education team, get simple advice over the phone3, or be referred to an expert for personal financial advice4.
The moments that count
There are moments in life that can change the course of your financial future and help set you up to achieve confidence in retirement.
Learn more from our members and super experts in The moments that count podcast.
- If you’re 60-64:
-
Disclaimers
- Before making a decision to combine your super, consider any fees or charges that may apply, and the effect a transfer may have on benefits in your other fund such as insurance cover. We recommend you consider seeking financial advice. If you wish to claim a tax deduction for personal super contributions, you must lodge a notice of intent to claim a tax deduction with your other fund before you combine your super.
- Before adding to your super, consider your financial circumstances, eligibility, contribution caps that may apply, tax issues and when your super can be accessed. We recommend you consider seeking financial advice.
- There’s no charge for general advice about your super account. The financial advice you receive will be provided by MUFG Retire360 Pty Limited ABN 36 105 811 836, AFSL 258145 and will be their responsibility. Personal advice provided may attract a fee, which will be outlined before any work is completed and is subject to your agreement.
- Personal financial product advice is provided under the Australian Financial Services Licence held by a third party and not by AustralianSuper Pty Ltd. Some personal advice may attract a fee, which would be outlined before any work is completed and is subject to your agreement. With your approval, the fee for advice relating to your AustralianSuper account may be deducted from your AustralianSuper account subject to eligibility criteria.