Most retirees get income from at least a couple of sources, like super and the Age Pension.
If you’re thinking about retirement, it’s important to consider where you’ll get the money you’ll need to live on, and set up a plan to make it last.
Your retirement income can come from many sources including:
- Income from super
- Investments outside super
- Age Pension
- Reverse mortgages and home reversion
- Selling the family home
- Working part-time.
These income sources can be combined so your money lasts longer, and you have a more comfortable retirement. However, it’s worth remembering that one income source can have an impact on another. For example, if you decide to sell the family home, your Age Pension may be reduced or cut off.
For information on how your different income sources will affect your Age Pension, speak to a Department of Human Services’ Financial Information Service (FIS) officer. FIS officers can also talk to you about taking control of your finances and help you plan for your retirement, and their services are free.
Assess your financial position
To prepare for retirement, the first thing to do is to work out how much money you have now, how much you might have in the future and where it will come from.
Bring this information together by finding out:
- what assets (houses, savings, investments) you have and how much they are worth
- how much super you have and when you can access it
- whether you are likely to be eligible for the Age Pension and when you can apply for it.
Find out when you can get your super and the Age Pension.
Make a long-term financial plan
The next step is to think about how your needs might change over time. For instance, in the first few years of retirement, you might want to travel or take up a new hobby. Later, you may want to replace your car or renovate your kitchen. Further down the track, you may want to move into a retirement village.
Think about how you can use your different income sources to fund the different stages of your life. Seek financial advice or speak to a FIS officer if you are unsure what to do.
The retirement planner will estimate your future income from your super and the Age Pension. You can also explore ways to improve your outcome.
See how your retirement’s looking.
Video: Effie Zahos on planning for retirement
In this video, Effie Zahos explains a few things you can do