Retirement: Pension VS Superannuation

Retirement often boils down to two options. The first is to rely on the Age Pension. The second is to get advice early, save diligently, build a significant nest egg, and run your own retirement.

 

The Pension Option
 
The Self-Funded Alternative
Age Pensions vary dependent upon whether you are single or a couple, your income, assets and some other circumstances.

You might qualify for a full Age Pension of $34,252 per annum#. This is close to the amount determined to be sufficient for the “modest retirement” of a 65-year-old couple while being able to afford basic activities*.

The income test also allows couples to earn supplementary income of a combined $7,592 per year and still receive a full pension. That total of $41,844 pa leaves them over $17,000 short of being able to afford a “comfortable” lifestyle*.

  A self-funded retirement can mean fewer cash flow stresses and worries, allowing you to enjoy the retirement you worked so many years for.

Freed from the modest lifestyle the Age Pension brings, this option also removes the need to watch every dollar and to report any changes in your circumstances to Centrelink.

Self-funded retirees are insulated from the impacts of any future changes to the Age Pension.

 

Start early and plan well

No matter what you can afford to invest, the key is to start retirement planning as early as possible. Pensions and superannuation are complex areas, so it is essential to obtain detailed and personalised advice from one of our qualified financial advisers.
 

Our dedicated Financial Planners can assist you to plan and better manage your retirement, no matter your situation or life stage. Find out how you can improve your retirement options today, call us on 07 3899 2866.