Nick is 70 and has worked as a mechanic for most of his life and has been getting super for a long time. On his 65th birthday he retired with $300,000 in his super.
Nick has always planned for his super to be his main source of income in retirement, so he met with his Industry SuperFund's financial planner to discuss his options. The adviser suggested he convert his super into an income stream and start drawing down on it gradually while also taking a small amount of the Government Age Pension as a top-up.
This strategy allowed the balance in Nick's Industry SuperFund to remain invested while Nick could also still be in control of his balance with the flexibility to choose how much he wanted to take as an income and how often. He could also withdraw extra money anytime he wanted.
Nick's balance continued to grow in the early years of retirement while also providing him with an income. And as an added bonus, Nick was better off than if he had switched to a retail super fund.
Here's what that looked like:
That's a difference of over $20,000, simply because he stuck with his Industry SuperFund.
Nick is not an actual member. His story has been created for illustrative purposes.
*Past performance is not a reliable indicator of future performance and should never be the sole factor considered when selecting a fund. Comparisons and modelling by SuperRatings, commissioned by ISA, and show average difference in pension net benefit results after the first 5 years of retirement of the main balanced investment options of 8 Industry SuperFund pension products and a sample set of retail pension products tracked by SuperRatings with a 5 year performance history to 30 June 2023 (23 funds), taking into account historical earnings and fees. The model assumes a drawdown amount of 5% per annum, which is deducted monthly. Outcomes vary between individual funds. Modelling performed on 6 October 2023 using data as at 30 June 2023. See the Assumptions page for more details about modelling calculations and assumptions. General advice only. Consider a fund's Product Disclosure Statement (PDS) and your personal financial situation, needs and objectives, which are not accounted for in this information, before making an investment decision. ISA Pty Ltd ABN 72 158 563 270 Corporate Authorised Representative No. 426006 of Industry Fund Services Ltd ABN 54 007 016 195 AFSL 232514.
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