Sometimes the best plans are simple and straightforward. Although retirement rules are complex, your retirement investments don’t need to be. You can create a great retirement plan –delivering the lifestyle you want and can afford – with just the Age Pension, a retirement income stream from your super fund (an “Account Based Pension”) invested in diversified funds, and if you have investments outside super, keeping those simple too – a mix of low cost diversified managed funds and bank deposits for liquidity purposes. Let me show you how.
Think about your retirement sourcing like a 3 block pyramid.
The Age Pension is the base. If you’re eligible, that’s great. You’ll get a stream of income, payable fortnightly, that adjusts for inflation every six months. If you’re not eligible now – maybe you’re not yet 67 or your current income or assets are too high – you probably will be one day as you spend down your other assets. 80% of people are eligible for the Age Pension by the time they’re 80.
If you’re on the part Age Pension, it’s likely that it will rise as you get older. When you spend down your assets, like super or savings & investments, your entitlement improves.
