HELP WITH YOUR RETIREMENT INCOME

What does retirement mean to you? If you've just started working, it probably seems miles away. But the closer you get to it, the more you need to consider how retirement will change your life, and your lifestyle.

To enjoy your retirement by doing the things you want to, you need to sort out your finances. Take a realistic look at how well you're preparing for retirement, and develop an action plan. Early planning means retirement doesn't sneak up on you!

The decisions you make today may be the difference between simply getting by and enjoying a comfortable lifestyle. Take the time to read on and be informed about your retirement planning.

Until now, you've probably received a regular salary or wage from your employer, or your business. In retirement, you'll need to replace that salary or wage with a regular income from other sources.

If you think you'll rely on social security benefits, be warned! Government pensions only equate to about 25% of the average weekly wage. Are you prepared to take a pay cut?

Additionally, social security benefits in Australia are means tested, meaning only some people are entitled to social security benefits. And if the ratio of taxpayers to income recipients continues to decline, it's possible that there will be less social security support from the government.

Many people may need to provide the bulk of their income from other sources, such as rent from an investment property, share dividends, wages from a part time job, interest from savings, and most importantly, your superannuation and retirement savings that can be converted to a personal retirement income stream.

It's up to you to save now to provide for yourself in retirement.

WHAT IS AN ALLOCATED PENSION?

An Allocated Pension Plan is an investment for your retirement that lets you roll over your superannuation lump sum in exchange for a series of regular income payments. It offers flexibility and control over your income and allows you to nominate your spouse or a dependant to receive the income payments on your death.

You can choose the annual level of income you want to receive, within government-set limits which you can review each year. You're able to make withdrawals from your investment at any time:-

• Invest from just $20,000
• Purchase using non-preserved superannuation savings or an eligible termination payment lump sum
• Invest in a range of investment portfolios, from safe to balanced to aggressive
• Flexible fee options allow you to invest without entry fees
• Choose how often you want to receive your income payments – monthly, quarterly, half-yearly, yearly
• Protect your income against inflation by choosing to increase your income each year in line with the CPI or at a fixed percentage
• Your investment may qualify for favourable tax or social security treatment
• Switch your investment between funds without incurring any administration fees

An Allocated Pension Plan offers a choice of portfolios from leading investment managers with diverse investment styles. When you invest, you choose from a range of strategies. This means you can select to invest solely in cash or shares, or alternatively, choose one or more managed funds that provide exposure to a variety of asset types within one fund.

They are an ideal way to gain an income in retirement.

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