There are a number of steps you can take to boost and protect your retirement income.
|Your lump sum|
You may first decide to take a lump sum from your Super to pay off any debt, have a holiday and make any necessary purchases.
Pensions - are only available from superannuation funds and can only be purchased with Superannuation benefits.
An Annuity - can be purchased from life insurance companies using Superannuation benefits or, in some cases, other savings. An Annuity guarantees to pay a set income for a set period of time, either a number of years or for life. There is no capital left at the end of the specified period. The income may be indexed each year, often in line with inflation.
Where to invest?
You should do your research and get expert advice. As for the basics, your choices broadly include:
When will you need more income?
Your risk profile
|Making it last|
Making your money last can be a challenge but there are steps you can take.
Manage your budget - One way to make your money last is to watch your spending. If you need help you can use the ANZ Budget Planner.
Earn more money - More and more Australians are choosing to work part time before moving to full-time retirement. Policies such as Transition To Retirement and the Government's Work Bonus incentive program are designed to reward you for staying in the workforce.
Find out more at MoneySmart.
|The Age Pension|
You could be eligible to receive both the Age Pension and the Pension Supplement, which provide assistance with things such as prescription drugs, utility payments, your phone bill, travel and so on.
The assets test
If you do receive a pension you may also like to ask about Centrepay, a free direct bill paying service.
|Protecting your assets|
Retirement is not the time to be taking risks with your assets. Insurance products can help protect your home, car and other valuables.
Review your insurance with an expert - in some cases you may even find yourself over insured. If the kids have left home and you’re debt free with a secure retirement income there may be no need for life insurance.
There is a range of benefits available for retirees and you should make sure you receive all of your entitlements.
The Commonwealth Seniors Health Card - is provided by the Federal Government and gives older Australians (who pass an income test) concessions on prescription medicines through the Pharmaceutical Benefits Scheme.
The Seniors Card - isn’t means tested and is available to any Australian resident who is over 60 and not working full-time. This card can give you access to discounted travel on public transport, concessions at major sporting and cultural events, free access to selected museums and a variety of other discounts from the private sector. Different discounts apply in each state and territory.
The Seniors Supplement – is available to self-funded retirees who are eligible for the Senior Health Card or the Veterans Affairs Gold Card. It provides regular cash payments to help with bills such as energy, rates and motor vehicle registration fees.
Government loans – this is a scheme designed to provide money for people to live on. If you’re not on the full pension due to your income or assets (but not both), you may be able to use your real estate as security for a loan.
Carer Allowance – if you’re receiving a pension and also caring for someone you may receive further support.
Medicare Safety Net – this will reduce the amount you pay for regular visits to doctors and specialists.
Pharmaceutical Benefits Scheme (PBS) Safety Net Card - Once you spend up to the threshold, medicines will be less expensive or free for the rest of the calendar year. You can apply at your local pharmacy.
Need help? You can work through these issues yourself with the various government departments, or talk to an ANZ Financial Planner who can help you.
|How we can help|
Maximising your retirement income and taking advantage of any benefits for which you qualify can play a big part in allowing you to have freedom to enjoy your retirement.
ANZ 50+ Benefits: Depending on your situation and the products you choose, your benefits could include fee waivers or bonus interest.
An A-Z Review® with an ANZ Retirement Banking Specialist: during a complimentary A-Z Review® an ANZ Retirement Banking Specialist can help explore ways to maximise your returns and protect what’s important to you. Request an A-Z Review® at your nearest ANZ branch.
An ANZ Financial Planner can look at your options for generating income in retirement through annuities, Superannuation and other investments, while taking advantage of any tax benefits available to you. Your initial discussion is complimentary and without obligation.
® A-Z Review is a registered trademark of Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522.