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 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, and he converted it into an income stream account with his Industry SuperFund
- Over the past five years he withdrew on average around $10,646 each year to top up the Age Pension.
- Today, his super balance has grown to $215,848.
- George experienced an average five-year Industry SuperFund investment return of 6.72% (2015 - 2020).
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.
invested after income taken
|Income stream payments||Age Pension payments||Total income|
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 6.72% p.a., starting balance of $200,000, starting age of 65, home is owned, access to half of a couple’s full Age Pension entitlements, married, no other income sources available. Modelling as at 30 June 2020. 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.
# Note that since the date of the comparative modelling the number of funds qualifying as Industry SuperFunds has changed from 15 to 13. This change does not reduce any comparative differential shown in the modelling. Revised modelling will be undertaken in the near future.