Amanda Hardy Lai

Amanda has worked in the financial services industry since 1998 and has been providing financial advice since 2006. Her career has been driven by a commitment to ensuring the highest standards of financial advice and client care. To book a consultation with Amanda click here.
When retirement income is much more than the Age Pension and super

When retirement income is much more than the Age Pension and super

Your retirement income could come from one or more of many different sources. Perhaps it’s made up from a super drawdown, or part Age Pension entitlement, work income, share dividends, franking credits, interest on investments, rent from an investment property … the list goes on.

Or, you may be like Darren, who receives the bulk of his income from a Defined Benefit Pension (DBP). He recently asked us to explain the way a wider range of retirement income inputs might combine to create a reasonable retirement lifestyle. Here’s how we explained the way these different sources of retirement income work together.

Retiring with a Defined Benefit Pension 

Defined benefit income streams aren’t as common as they once were. Decades ago, they were standard for many public servants and professionals, offering a regular income for life based on salary and years of service. However, these schemes posed significant financial risk for employers, who were essentially on the hook for making lifetime income payments. Over time, this has led to their gradual phase-out in favour of the accumulation-style superannuation where the investment and longevity risk sits with the individual.

If you’re retiring with a defined benefit income stream today, you’re part of a smaller group. These pensions are assessed differently for both tax and Centrelink purposes, so it’s worth taking the time to understand how they interact with your other retirement income sources – especially if you’re also eligible for the Age Pension or managing an Account-Based Pension.

How small financial changes can reap big rewards

How small financial changes can reap big rewards

Retirement offers an exciting new chapter in life — but it also often brings a range of financial decisions that aren’t always straightforward. Daniel and Emma recently reached out to Retirement Essentials for much-needed assistance.. Their meeting with adviser Andrew Dunkerley gave them clarity, confidence, and a practical plan for their retirement income needs. 

Meeting super withdrawals before 30 June

Meeting super withdrawals before 30 June

As the end of the financial year approaches, it’s a timely reminder for anyone drawing an income from an Account-Based Pension (ABP) to double-check they’ve met their minimum annual withdrawal requirement.

ABPs are a key tool for providing tax-effective income in retirement. But they come with rules — and missing a key one can have unintended tax or compliance consequences. Many Retirement Essentials members have shared questions about how it all works, so we’ve included answers to these questions to help clarify common concerns.

Understanding minimum annual withdrawal requirements

Each year, individuals with an ABP must withdraw a minimum percentage of their balance. This is calculated based upon their age and their ABP account balance as at 1 July of that financial year. (i.e the balance at 1 July 2024 is the one being used to calculate this amount for this financial year which ends on 30 June.) These percentages are designed to gradually draw down retirement savings over time.

For example, someone aged 65–74 must withdraw at least 5% of their ABP balance; this increases to 6% once they turn 75.

A little-known fact:

It’s important to note that lump sum withdrawals don’t count towards satisfying the minimum. The required payment must come from your ABP as an income stream.