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George's story

George is 70 and married. He’s been a tiler for most of his life, and at 65 decided it was time to hang up the tools and retire to work on his garden.

He was paid super during his working life and saved around $200,000 with his Industry SuperFund.

Before he retired, he spoke to his Industry SuperFund’s financial planner about how to maximise the money he had saved. His adviser recommended that he open up an income stream account and start drawing down on his money gradually. This meant he could still access the Government Age Pension while the balance of his saved money continued to grow during the early years of retirement before he gradually draws down on all of it. 

Here’s what that looked like:

  • His super balance was $200,000 when he retired
  • Over the past five years he withdrew around $11,000 each year to top up the Age Pension
  • Today, his super balance has grown to $244,013

George is planning on gradually drawing down all of his super over time, but for now, he’s leaving the balance invested and enjoying the returns while he accesses the Age Pension.

George's numbers

 Super balance
invested after income taken
Income stream paymentsAge Pension paymentsTotal income
2011/12 $200,000.00 $10,000.00 $14,292.20 $24,292.20
2012/13 $191,597.00 $9,580.00 $14,807.00 $24,387.00
2013/14 $213,426.00 $10,671.00 $15,579.20 $26,250.20
2014/15 $232,204.00 $11,610.00 $16,244.80 $27,854.80
2015/16 $245,309.00 $12,265.00 $16,858.40 $29,123.40
Closing Balance $244,013.00      

George is not an actual member. His 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 $200,000, starting age of 65, home is owned, access to the part Age Pension, married, 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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