Turning Super into Retirement Income - How and why would you turn superannuation into a pension

Are you thinking about retiring from work?
Luke Smith joined 2CC Talking Canberra 1206AM. The Money Show aired on Friday 8 November 2019.
As we approach the end of a year or financial year, the calendar prompts many people to think about their own retirement plans. In this podcast, Luke explores how to turn your superannuation into a retirement income stream and explores some of the important issues to consider before you decide to leave your job.
Key highlights include:
- When it comes to life after work, there’s no such thing as a dumb question.
- What’s the difference between a transition to retirement pension an account-based pension?
- Will you continue to work part-time or will you retire fully and cease employment?
- How often can you draw pension payments from either your transition to retirement or account based pension?
- An account based pension are very tax effective - but have you thought about your tax position with other assets?
- Also think about the relationship between partners to maximise your tax-free limits under the transfer balance cap.
- Why is seeking retirement advice before you leave work important?
- An offer to trail our knowledge centre which is full of information, videos and calculators at no cost. Checkout our online calculators too.
Do you need advice on your retirement plans?
If would like to talk about setting some financial strategies to achieve your goals, including your retirement goals and planning, make an appointment to meet Luke at Envision Financial Services on 6260 4749. You can also use our contact us form to make an appointment for a confidential discussion about your situation.
Envision 2CC offer: Your first appointment is at our cost. Make an appointment to confidentially discuss your financial situation and financial goals.
Luke will return to talk about financial planning on 2CC Talking Canberra next Friday from 4.30pm. Tune into listen live or visit our website again to catch up on the podcast. You can also subscribe to our CZcams Channel at Envision Financial Canberra.

[@grousiest]

Thanks very much for your informative discussion. If I’m retiring with a DIY mix and I have a percentage in cash, just wondering if I’m able to specify drawing down exclusively from that cash during times when the market is doing poorly. Thinking of setting up my super account to accomodate that choice if possible. Thanks again!

[@thestrategystacker]

You need to check with your fund as to how they meet pension payments. You would want pensions paid from cash and not assets. Some sell down assets others draw from cash. It would also make sense to hold 6 months or more job cash to fund pension payments if something like covid impacts markets again and you need time for things to recover.