Skip to Main Content
Time to read read

Super income stream and Age Pension

How can they work together?

Any amount of super can help you enjoy retirement, no matter how small your super balance is. By combining your superannuation with the Government Age Pension, you can improve your position.  

To find out more, or to speak with someone about your specific situation contact your fund.

How do I get the most out of a small super balance?

It’s important to remember that your super can be eaten into by fees and charges. So a good starting point is to ensure it’s invested with a low-fee fund such as an Industry SuperFund.

When you choose a low-fee income stream, and combine that income with the Age Pension, your regular income can get a nice boost – even when you retire with a super balance under $100,000.

Your Industry SuperFund can show you how super and pension can work together.

Here's an example

Barbara's story

Barbara is a mum of four grown up children and a grandmother to seven. 

As well as raising her children she juggled part-time work as an administration assistant, picking up more hours as her kids grew older.

She separated from her partner years ago and now lives by herself in a rented unit near the beach.

Now 70, she’s been enjoying retirement for the past five years. Due to being in and out of the workforce, her super balance at 65 was $50,000 and she knew she would need to rely on the Government Age Pension to fund her retirement.

Before retiring, she spoke with her Industry SuperFund’s financial planner to ensure she made the most of her $50,000. They advised her to draw down on her super through an income stream to top up her Age Pension. That would maximise the amount of Age Pension she would receive and allow her $50,000 to continue to grow a little in the early years of retirement, before she gradually draws down on all of it.

Here’s what that looked like:

  • Her super balance was $50,000 when she retired.
  • Over the past five years she withdrew on average $2,569 each year to top up her Age Pension.
  • Today, her Industry SuperFund balance has grown to $53,977.
  • Barbara experienced an average five-year Industry SuperFund investment return of 6.26% (2018 - 2023).
  • Her annual income over the past five years on average (from her super and the Age Pension) has been about $30,735.

For Barbara, that extra $2,569 comes in handy for the grandkids at Christmas time and to fund a holiday every year.

Closing Balance $53,977      
  Super balance invested after income taken Income stream payments Age Pension payments Total income
2018/19 $50,000 $2,500 $27,102 $29,602
2019/20 $51,264 $2,563 $27,648 $30,212
2020/21 $48,391 $2,420 $28,181 $30,601
2021/22 $55,574 $2,779 $28,431 $31,210
2022/23 $51,639 $2,582 $29,468 $32,050

Barbara 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 8 Industry SuperFunds’ retirement income products during the first 5 years of retirement. Example assumes the average 5 year Industry SuperFund investment return of 6.26% p.a., starting balance of $50,000, starting age of 65, home is rented, access to the full Age Pension including rent assistance, single, no other assets or income sources available. Modelling as at 30 June 2023. Performance (Net Benefit) modelling is based on actual reported returns over the stated period. Capital growth will not continue throughout retirement. Past performance is not a reliable indicator of future performance. Returns may fluctuate over time and can vary significantly from year to year. 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. 

What's your question?

warning Your question will be sent directly to the fund you select

Talk to someone who knows how to help

warning Your question will be sent directly to the fund you select

  • You will be called back at the next available opportunity.

Thank you for your enquiry

An error has occurred

Due to a technical fault we are unable to to submit your form at the moment. Please try again later.

Additional details: