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Debbie’s story

Debbie is 70 and has worked as a teacher and a principal for most of her life, and has been getting super for a long time. On her 65th birthday she retired with $400,000 in her super.

In her 50s she separated from her husband, and they sold the family home to buy two smaller houses. She lives in one of them and has no debt.

Debbie’s always planned for her super to be her main source of income in retirement, so she met with her Industry SuperFund’s financial planner to discuss her options. The adviser suggested she convert her super into an income stream and start drawing down on it gradually. By doing that, she would also be eligible for a small amount of the Government Age Pension as a top-up. This strategy also allowed the balance in her Industry SuperFund to remain invested and continue to grow during the early years of retirement before she gradually draws down on all of it.

Here’s what that looked like:

  • Her super balance was $400,000 when she retired
  • Over the past five years she withdrew around $21,700 a year from her Industry SuperFund
  • She topped that money up with an extra $11,700 a year that she received from her Age Pension
  • Today, her Industry SuperFund balance has grown to $488,648

Debbie’s Industry SuperFund continues to work hard for her in retirement, while at last she gets to put her feet up.

Debbie's numbers

 Super balance
invested after income taken
Income stream paymentsAge Pension paymentsTotal income
2011/12 $400,000.00 $20,000.00 $11,011.65 $31,011.65
2012/13 $383,333.00 $19,167.00 $12,567.11 $31,734.11
2013/14 $427,127.00 $21,356.00 $12,049.30 $33,405.30
2014/15 $464,806.00 $23,240.00 $11,668.57 $34,908.57
2015/16 $491,141.00 $24,557.00 $11,225.20 $35,782.20
Closing Balance $488,648.00      

Debbie is not an actual member. Her story has been created for illustrative purposes.

Modelled outcomes by SuperRatings show 5 year average net benefit results taking into account historical earnings, fees and drawdown amount of 5% p.a. of the main balanced investment options of 15 Industry SuperFunds’ retirement income products during the first 5 years of retirement. Example assumes the average 5 year Industry SuperFund investment return of 9.49%, starting balance of $400,000, starting age of 65, home is owned, access to the part Age Pension, single, no other income sources available. Modelling as at 30 June 2016. Capital growth will not continue throughout retirement. Past performance is not a reliable indicator of future performance. Outcomes vary between individual funds. Consider a fund’s Product Disclosure Statement (PDS) and your personal financial situation, needs or objectives, which are not accounted for in this information, before making an investment decision. For more details about the SuperRatings modelling see the Assumptions page.

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