1. Make the most of your your superannuation
As retirement approaches, it may be tempting to withdraw your superannuation as a lump sum. While this provides immediate access to cash, it also means shifting your funds from a tax-advantaged environment to one where investments could be taxed at higher rates.
Instead, consider using your super to purchase an account-based pension (also known as an allocated pension). This option not only provides a steady income that mimics the regular paychecks you received during your career but also benefits from tax-free earnings within the account. This structured approach ensures you continue to enjoy consistent cash flow while keeping your funds invested.
2. Review your super investment mix regularly
Leaving your money in the superannuation system during retirement can be a wise move, but it requires regular oversight. Aim to review your investment strategy annually. Although shifting everything to low-risk investments can feel safer, it might limit your potential for capital growth. Maintaining some exposure to higher-risk, growth-focused assets such as shares or property can help protect against inflation and increase your retirement savings over time.
3. Check your Age Pension entitlements
Even if you have substantial assets, you might qualify for a part payment of the age pension. The age pension can supplement your income, and qualifying for even a small amount can grant you access to various concessions, such as discounts on council rates and other beneficial services.
4. Leverage your home equity
For many retirees, the family home is their most significant asset, often worth more than their superannuation. Tapping into home equity can be a viable way to access additional funds without needing to sell or move. Solutions like home equity release schemes could provide extra income while allowing you to stay in your home.
5. Get professional guidance
Navigating retirement strategies can be complex, but you don’t have to go it alone. A financial adviser can discuss your options for accessing home equity, structuring an account-based pension, and optimizing your super investment mix to create a stable and sustainable retirement plan tailored to your needs.
Start planning today to make the most of your retirement years. Every dollar counts—make sure yours are working as hard as you did.
Source: BT
