When it is time to take your lump sum of superannuation and retire it is important that your funds are not only invested in the most suitable assets for your retirement but also to ensure your superannuation is invested in the most suitable superannuation structure.
What most people require in retirement is an income stream from their superannuation to replace their wages and allow them to live a comfortable lifestyle. It is important to recognise that some investments are structured to pay more income than others and some investments pay no income at all. It is important therefore – if a long term income is important to the quality of your retirement – that you invest in an appropriate range of assets that provide you with long-term, stable income.
It is also important to take into account that all superannuation structures are not the same. There are two main superannuation phases:-
- Accumulation and Pension phase. Accumulation Super is what you are invested in throughout your working life. There are strict rules and restrictions around accessing your superannuation funds when in Accumulation phase.
- Pension phase on the other hand provides valuable tax concessions and access to your funds once you are retired.
When it comes to retirement it is highly beneficial to ensure that you are invested in the appropriate income producing funds and the appropriate phase of superannuation.
So therefore, if you’re not sure of how much superannuation you have, not sure what investments you are invested in or want to know more about how the different phases of superannuation can leave you with more retirement income, then please contact John Kalachian or John Byrnes for a free no-obligation financial and superannuation review.