Where’s the fun in retirement if you spend your time worrying about money? If retirement is still more than five years away for you, now’s the right time to make sure your retirement savings options are in line. If you’re in or beyond your mid-50s, though, consider seeking professional financial advice on how to turn your savings into income.
Once you retire, or satisfy a condition of release to gain access to your super, you can move your superannuation into a retirement income vehicle such as a pre-retirement pension, allocated pension or annuity to provide a tax-effective, regular income stream.
The government Age Pension provides a safety net for people who can’t fully fund their own income in retirement.
The amount of Age Pension you’ll receive depends on whether you are single or have a partner, whether you have dependent children and the level of your income and assets. The Age Pension is considerably less money than most people are used to living on. See the Centrelink website for details of current pension rates and the income and assets tests.
You won’t be eligible for a part or full Age Pension until you reach the ‘qualifying age’. The qualifying age for men is 65. The qualifying age for women is gradually being increased to match the qualifying age for men, and varies between 63 and 65 depending on your date of birth1.
From 1 July 2017, the qualifying age to access the Age Pension for both men and women will begin to increase. By 1 July 2023, the qualifying age will reach 671.
You may be able to organise your retirement finances so that you qualify for a part or full Age Pension. After receiving professional financial advice, people who don’t think they qualify often find that they can claim a part or full Age Pension.
If you’d like advice on how to ensure a retirement income, you can book an appointment online to organise a complimentary, no-obligation consultation with a Commonwealth Financial Planner.
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