Even if you’re still years off retirement, it’s good to have a broad understanding of what your options are when you enter retirement. Generally, you can access your super when you turn age 60 and retire, or slightly earlier if you were born before 1 July 1964 (in some circumstances, such as if you’re totally and permanently disabled, have a life-threatening illness or going through financial hardship, you can access your super earlier). For more details see our When can I access my super? factsheet. If you’re under age 65, and have reached preservation age, you can also consider the pre-retirement pension strategy.
How a pension account works
When you retire, you can choose to take your super as a lump sum, or open an account-based pension (pension). A pension is a popular way for Australians to manage their retirement savings, because investing your super in a pension rather than taking it
as a lump sum, or keeping it in super, can make your retirement savings go further. You can invest in the same assets, such as cash, shares or property, inside or outside a pension. The difference is that the government provides tax savings on investments inside a pension as an incentive to convert your super into a regular income stream
to support you in retirement, rather than taking it as a lump sum. The lower tax rates mean the same investment in a pension will go further than if invested outside a pension.
Keeping control over your money
At Mine Super, our purpose is to deliver an exceptional retirement for members which achieves peace of mind along the way. Offering access to an income stream via an account-based pension is part of this commitment. Each year you can choose the amount
you want to receive from your pension, subject to a minimum age-based amount, which is set by the government. Your payments will be paid into your bank account and you can choose how often you want to be paid; fortnightly, monthly, quarterly,
half-yearly or yearly.
Did you know? Unlike super, where you must keep your money invested until you retire, when you invest in a pension you get the tax benefits and you’re free to make a lump sum withdrawal
at any time if you require extra cash (with a minimum amount of $2,000).
The role of the government Age Pension
Despite an increased reliance on superannuation to fund people’s retirement, many Australian retirees continue to supplement their retirement income with at least a part government Age Pension. Even if you only qualify for a part pension, this can
make a difference to your retirement lifestyle, as you’ll automatically qualify for a pension concession card and associated discounts. For more information about this, read our Super savings and the government Age Pension
Turn to Mine
You can also speak with an adviser to discuss how to best prepare for retirement – and remember, it’s never too early to start planning! Financial advisers from Mine Super Financial Advice can support you with quality advice and recommend
what they think is best for you and your future. Mine Super members are entitled to a complimentary appointment. And did you know? Advice on how your account is invested is at no extra cost, but there are fees associated with providing personal financial
advice. During your appointment your adviser will discuss the fees and how you’d like to proceed. You can request an appointment online
or by contacting us.