Retirement 101

Australian women retire with 35% less super than men. When you add in the gender pay gap and career disruptions that can come from being a mother, retirement planning is a tricky business for women.

We’re on a mission to change that. We know just how many options are on the market, and we want everyone to have the tools, knowledge, and guidance to know which ones are right for them. Given it’s such a complex topic, we encourage everyone to talk to a professional financial advisor before making any big decisions.

Accessing superannuation

Superannuation access comes when you hit a certain age - it’s different for every super fund. That doesn’t mean you have to withdraw all your super though. You also have the option to leave it where it is and continue adding to it for a few more years.

Retirement pension fund

Plenty of people transfer their super balance into a pension account when they’re ready to retire. This is a super simple way to pay yourself a regular income on a monthly, quarterly, half-yearly, or even yearly basis.

Market performance and other variables mean the balance on this account can increase or decrease. Unless you have a guaranteed product, that means you may outlive your pension so it’s important to create a budget that gives you a buffer.

Investing in an annuity

An annuity is paid by a life insurer in return for a lump sum from a super fund or other savings account. Just like a retirement pension fund, these payments can be paid monthly, quarterly, half-yearly or yearly, for a certain period or for the rest of your life.

The biggest concern with investing in an annuity is that your money is locked away. However, there are now some products coming to the market to let you make extra withdrawals.

Self-managed super fund

Have you ever wondered why so many small business owners have self-managed super funds? While many of these people simply want control over their own money, this option also gives you the freedom to invest your super into property or business.

It’s important to note that these super funds can’t engage in transactions with ‘related parties’ of the fund. That includes members of the fund, their family members, or any business associates. A business's real property is also excluded from the in-house assets rules. Residential property can be purchased but can’t be rented out to any related parties.