CHOOSE YOUR ADVISER

Vera Gu 
   
Robert Castro
admin@eppwm.com
Everest Partners Private Wealth ManagementEverest Partners Private Wealth Management
  • About Us
  • Our Services
    • Core Services
      • Financial Planning
      • Superannuation
      • Retirement
      • Investments
      • Finance and Debt Management
      • Risk Insurance
    •  Additional Services
      • Share portfolio management
      • Estate Planning
      • SMSF Advice and Administration
  • Resources
    • Our Diary Notes
    • Our Client Manuals
    • Our Client Newsletter
    • Fact Sheets
    • Financial Calculators
  • Important Documents
    • Financial Services Guide
    • Adviser Profile – Rob Castro
    • Adviser Profile – Vera Gu
  • Contact Us

Everest Partners Private Wealth Management

Contact Us

admin@eppwm.com
L 36, Gateway Tower, 1 Macquarie Pl. Sydney NSW 2000

Close

Sign up to newsletter

Hi there!

We hope you enjoy reading our content. We would love to notify you when we put new content up on our website.

Subscribe with us today!

Sign up to newsletter

Understand Superannuation Trends and Make Better Choices

Understand Superannuation Trends and Make Better Choices

Despite efforts to encourage retirees to use income stream products, many are still opting for lump sum payments when accessing their super. In fact, there's been an increase in lump sum withdrawals recently. Are you making the most of your retirement savings? In this article, we discuss why this matters to you and what you can do about it.

Are you making the most of your retirement savings? Recent data from the Australian Prudential Regulation Authority (APRA) has shed light on some interesting trends in how Australians are choosing to use their superannuation in retirement.

What the Data Shows

Despite efforts to encourage retirees to use income stream products, many are still opting for lump sum payments when accessing their super. In fact, there’s been an increase in lump sum withdrawals recently.

For those who do choose pension-style payments, most are only withdrawing the minimum required amount each year. While this cautious approach is understandable, it may mean you’re not making the most of your retirement savings.

Why This Matters to You

As you approach or enter retirement, these trends highlight some important considerations:

1. Are you aware of all your options for accessing your super?

Different methods of accessing your super come with varying tax implications, which can significantly impact your overall financial situation. Some options provide more flexibility than others in terms of withdrawals and investment choices, allowing you to tailor your income stream to your needs. For example, strategies like transition to retirement pensions can help you reduce your tax burden while still working. Understanding these options empowers you to make informed decisions that align with your financial goals.

2. Do you have a clear plan for making your retirement savings last?

With Australians living longer — often needing to fund 20 to 30 years or more in retirement — it’s important to ensure that your savings will sustain you throughout this period. Many retirees are currently only drawing down the minimum required amount from their superannuation, which could lead to a lower standard of living than necessary. Without proper planning, there’s a risk of outliving your savings or unnecessarily restricting your lifestyle. A well-thought-out strategy can help you balance enjoying your retirement while ensuring financial stability.

3. Are you confident in managing investment risks during retirement?

The investment approach required during retirement differs significantly from that during the accumulation phase. In retirement, it’s essential to balance the need for growth with the requirement for regular income, which can be challenging, especially in the face of market volatility. Understanding how to navigate these risks will enable you to maintain a steady income while preserving your capital for the long term.

What You Can Do

Every retiree’s situation is unique, and there’s no one-size-fits-all approach. However, here are some steps to consider:

Assess Your Lifestyle Goals and Income Needs

Assess your lifestyle goals and determine how much income you will need in retirement. Utilising retirement calculators can help estimate your required income based on your desired lifestyle. Consider both essential expenses and discretionary spending when creating your retirement budget, and don’t forget to factor in potential changes over time—such as rising healthcare costs—that could impact your financial needs.

Understand Retirement Income Products

To set yourself up for a successful retirement, it’s important to educate yourself about the various retirement income products available. Familiarising yourself with account-based pensions, which offer flexibility but require careful management, can be beneficial. Additionally, exploring guaranteed income products like lifetime pensions or annuities may provide the security you desire in your later years.

We understand that the array of products in the market can be overwhelming. Each option has its own set of features, benefits, and considerations. That’s why we encourage you to reach out to us. Our team can help you discover, discuss, and compare these options in a way that’s clear and relevant to your personal situation.

Seek Professional Advice

Seeking professional advice can be invaluable as you navigate this complex landscape. Consulting with a financial adviser who specialises in retirement planning can provide insights tailored to your unique situation. A professional can help you discuss strategies for optimising your superannuation withdrawals and investments while reviewing your entire financial picture — including non-super assets and potential government benefits.

Remember, your superannuation is there to support you throughout your retirement years. It’s important to use it in a way that gives you both financial security and the ability to enjoy your retirement to the fullest.

If you’d like to discuss your retirement planning in more detail, we’re here to help. Our team can work with you to create a personalised strategy that aligns with your goals and circumstances.

Don’t hesitate to reach out – we’re just a phone call away!

 

 
September 2024 A Holistic Approach to Your Financial Well-being
Breaking It Down – How to Frame Your Goals Clearly
Reflection, Retirement

Breaking It Down – How to Frame Your Goals Clearly

The Big Picture – Why Financial Goals Matter
Reflection, Retirement

The Big Picture – Why Financial Goals Matter

Maximise Retirement Savings Without Sacrificing Other Goals
Reflection, Retirement

Maximise Retirement Savings Without Sacrificing Other Goals

Contact Us

Sign up to newsletter

Sign up to newsletter
© Everest Partners Private Wealth Management 2025
ABN 21 635 916 755 | Financial Services Guide | Disclaimer
Robert's Adviser Profile | Vera's Adviser Profile

Everest Partners Private Wealth Management Pty Ltd is a corporate authorised representative (1278026) of Alliance Wealth Pty Ltd (ABN 93 161 647 007 and AFSL 449221)


General Advice Warning

All strategies and information provided on this website are general advice only which does not take into consideration any of your personal circumstances. Please arrange an appointment to seek personal financial, legal, credit and/or taxation advice prior to acting on this information.