Jeffrey is about to turn 64, he has just retired and has no financial dependents. After a long and rewarding career, his super balance is at $617,000. Jeffrey has estimated that he needs $45,000 p.a. for living expenses plus an additional $12,000 over the next 10 years so he can holiday in New Zealand and Queensland and renovate/maintain his house.

Jeffrey is interested in speaking with an Adviser to find out whether he should withdraw all of his super or whether he would benefit from transferring his money to a TelstraSuper RetireAccess income stream account. The new TelstraSuper Financial Planning Step it Up advice service can help Jeffrey set up an income in retirement to meet his needs. Jeffrey meets with the Adviser over video to discuss his options.

Option 1: withdrawing super

The Adviser considers the option of Jeffrey withdrawing his retirement savings out of super and investing it himself. After reviewing his future income needs, they conclude that this would not be a desirable solution for Jeffrey. This is because, outside of super, his super savings would be subject to ordinary income taxes. In addition, the lump sum payment on withdrawal would push him into a higher tax bracket, resulting in Jeffrey quicky depleting his savings just as he enters retirement.

Option 2: transfer money to a TelstraSuper RetireAccess income stream account

The Adviser then provides Jeffrey with a clear strategy to use his superannuation money to draw a regular income, which will be used to meet his cost of living of $45,000 p.a. Further to this, the Adviser helps Jeffrey to shape and refine his goals with respect to travelling to New Zealand and Queensland and also maintaining his home and how he can fund this. The Adviser assists Jeffrey to make this a more realistic and sustainable goal, reducing the potential impact on his long-term financial security.

After receiving the advice, Jeffrey uses his inheritance money of $30,000 to further build his retirement savings by contributing it into his super, in accordance with his situation, and considering his risk appetite, investment return expectations and chosen asset mix.

Jeffrey now has a clear idea of what is sustainable for him, from a lifestyle and financial perspective in retirement and is able to make informed decisions around his expenses.

Getting this advice cost Jeffrey $750* and allowed him to feel confident about his future, as he now has a clear understanding of how long his money will last.

Make the most of your retirement savings

The largest source of income for people when they retire typically comes from their super savings.

Some of the challenges people face when retiring is how much income to draw and how to invest their savings.

You're starting to think more about retirement. You’ve saved quite a bit in your super, but is it enough? And how does the Age Pension work and where does that fit in with your super? These are some of the questions TelstraSuper Financial Planning can help you with. 

We’re here to help

If you need a clear strategy for your income in retirement and assistance with your transition into this phase of life, a Step it Up Adviser can always help you make sure you’re on the right track. To make your appointment simply call 1300 033 166 between 8.30am and 5.30pm (Melbourne time), Monday to Friday or request a call.

Book appointment

*The amount charged can change based on your individual circumstances and the complexity of the advice you receive.

Any general advice in this article has been prepared without taking into account your objectives, financial situation or needs. Before you act on any general advice on this website, you should consider whether it is appropriate to your individual circumstances. Before making any investment decision, you should obtain and read the relevant product disclosure statement which is available on the Website or by calling 1300 033 166 between 8.30 am and 5.30 pm (AEST) Monday to Friday. You may wish to consult an Adviser before you make any decisions relating to your financial affairs. To speak with an Adviser from TelstraSuper Financial Planning call 1300 033 166.