The time has come. You’ve worked hard over the years contributing to your superannuation to build up your retirement savings.

Now you need to think about the best way to convert your savings into an income stream that replaces your regular pay cheque.

Here are six ways you could generate a steady and reliable source of income in retirement:

1. An account-based pension allows you to access some of your super savings as an income stream while investing the remaining balance. You can choose the amount and frequency of pension payments to meet your financial needs in retirement. It’s important to consider factors such as investment options, fees and tax when selecting a provider.
2. The Australian Government provides the age pension to eligible individuals who have reached the qualifying age and meet income and asset tests. The age pension offers a regular income stream to supplement your retirement savings. It’s crucial to understand the eligibility criteria and work with a financial adviser to maximise your entitlements and enjoy a seamless transition into receiving the age pension.
3. Investing in dividend-paying stocks or managed funds can be a valuable source of income during retirement. Dividends are regular payments made by companies to shareholders, providing a potential income stream. Seek professional advice to identify companies with a history of consistent dividends, while considering the level of risk that aligns with your financial goals.
4. Investing in rental properties can generate a steady income stream for retirees. Australia’s property market has historically shown growth, making it an attractive option for long-term investment. But it’s essential to thoroughly research the market and consider the pros and cons of using property to fund retirement.
5. Exploring part-time employment or leveraging your expertise through consulting can offer an additional income stream during retirement. Continuing to work not only provides financial benefits but also keeps you engaged and socially connected. Identify opportunities that align with your skills and interests, allowing you to strike a balance between work and leisure.
6. Annuities provide an income for life or a specified period, offering protection against market fluctuations. Talk to a financial adviser to determine the most suitable type of annuity that aligns with your income goals and risk tolerance.

We can guide you through the complexities of retirement planning and help you generate an income stream to enjoy a financially rewarding and worry-free retirement.

Current as at Jul 2023