Episode Details

Combining Age Pension and Superannuation: A Strategic Approach

This podcast episode delves into the importance of integrating your age pension with your superannuation for a comfortable retirement. For instance, a couple both turning sixty-five might need to draw around seventy-five thousand dollars from their combined five hundred thousand dollars in super for the first two years. However, once they qualify for the age pension at sixty-seven, this amount could drop significantly, potentially to just twenty-five thousand dollars from super.

The strategy involves your pension payments increasing as you get older, helping to offset the money youre still taking from your super. Its recommended to regularly check in with your super fund or consult a financial advisor for a detailed plan.

Moving money from term deposits to super for income might not significantly impact your pension. However, contributing to super before seventy-five could offer tax advantages, as any income drawn from superannuation is generally tax-free.

For those with substantial super balances, consider leaving a portion in an accumulation account to manage tax liability, or re-contribute excess pension income back into super until you reach seventy-five.

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