Retirement options

There are many options for accessing your retirement savings, both before you retire and once you’ve stopped working. Choosing the right retirement option can save you tax and give you more flexibility to achieve the lifestyle you’ve always dreamed about.

Allocated pensions

An allocated pension gives you a regular income funded by your super savings. You have the option to choose how much income you wish to receive, as long as it’s above a minimum percentage of your account balance, or you can make lump sum withdrawals. There can be significant tax benefits to retirees who roll their super into this type of retirement option, and Commonwealth Financial Planners can help you understand and take advantage of them.

Pre-retirement pensions

A pre-retirement pension lets you draw a regular income while you’re still working, offers tax advantages and gives you greater flexibility as you prepare for retirement. With this option, it may be possible to access your super once you reach your ‘preservation age’, and in most cases, you’ll pay less tax on your pension income than you would on equivalent salary or wages. The pre-retirement pension option is not for everyone, though, so it’s wise to seek professional financial advice before setting one up.

Annuities

Annuities provide a retirement income stream of regular payments over an agreed-upon period. Payments are guaranteed, and they can be linked to increases in living costs. Annuities are generally a far more tax-effective retirement option than cashing out your super.

Investment Growth Bond

Combining the benefits of a managed fund with the security of a life insurance policy in a simple, tax-effective investment vehicle, the Investment Growth Bond offers a range of investment options.

• Important information
  The information contained on this web page is of a factual nature only and is not intended to constitute financial product advice. It has been prepared by Commonwealth Financial Planning Limited without considering your individual objectives, financial situation or needs. You should consider its appropriateness in light of your circumstances and consider seeking professional advice relevant to your individual needs before making a decision based on this information. Commonwealth Financial Planners are Representatives or Authorised Representatives of Commonwealth Financial Planning Limited ABN 65 003 900 169, AFSL 231139, a wholly owned but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124.