Income in retirement
Whether you prefer a regular income stream or lump sum payments, we have an option for you to meet your income needs during retirement.
So, it’s finally time to say goodbye to work and the regular pay packet it provides.
The super you’ve built during your working life can now be used to help fund the years ahead.
And, with retirement lasting 20 or even 30 years for many Australians, there’s a lot of life to look forward to. So it’s important your savings last the distance.
There are a number of options for accessing your super once you’ve retired and reached your preservation age.
First, let’s look at our Pension account. More and more LGIAsuper members are choosing this option as it provides a regular income and access to lump sums.
- You can receive regular, automatic payments from your super and enjoy the flexibility of withdrawing lump sums when you want them.
- You choose fortnightly, monthly, quarterly or annual pension payments and the amount you would like to receive.
- If you’re age 60 or more, your pension income is tax-free. Before then, some tax is payable, but it’s generally lower than your marginal tax rate.
- Investment earnings in your Pension account are also tax-free, whatever your age.
Another option for accessing your super is through an LGIAsuper Accumulation account. With this account, you won’t be able to set up regular payments but you can withdraw lump sums whenever you need or want to. And, like a Pension account, all of your super is tax free on withdrawal once you reach age 60.
It’s important to note investment earnings in an Accumulation account are taxed at up to 15%, so if you had super invested in the same way in both an Accumulation and a Pension account, over the long term you’d generally enjoy higher net returns from the Pension account.
Whichever account you choose, you also have the option to withdraw your whole super balance at any time. You may want to use this money to pay off debts, take a holiday or invest it in different ways.
Keep in mind though:
- super is generally taxed less than other types of investments, and
- once you withdraw your whole balance you lose all of the benefits LGIAsuper membership brings.
Obviously, everyone’s situation is different and super may not be your only source of income. You may have other investments and you could also be eligible for the Government’s age pension.
How you access your super – and how it’s invested – can impact:
- how much tax you pay
- how much age pension you receive, and
- how long your super will last
So it’s a good idea to talk to LGIAsuper.
We can help you understand your options and decide what’s best for you. Making the right decision now can go a long way in making sure you maintain the lifestyle you want in retirement.
So call us today [1800 444 396] or explore our website.
This video has been produced by the Queensland Local Government Superannuation Board (ABN 94 085 088 484 AFSL 230511) on behalf of the Local Government Superannuation Scheme (ABN 23 053 121 564). It provides general advice only. It has been prepared without taking into account your individual objectives, financial situation or needs. You must not rely on this information alone as a sole or primary source of advice or guidance for the purpose of making decisions about your superannuation options.
You should not rely on the information and examples provided in this video to determine whether any LGIAsuper account is suitable for you. If you are interested in exercising your options in LGIAsuper, in relation to a matter referred to in this video, you should obtain the relevant Product Disclosure Statement and consider contacting an LGIAsuper representative.
This video provides general advice only. It has been prepared without taking into account your individual objectives, financial situation or needs. You must not rely on this information alone as a sole or primary source of advice or guidance for the purpose of making decisions about your superannuation options.