Your retirement questions

Your retirement options explained

No matter where you are in your journey, we’re here to help you make the most of your retirement. Arthur from our Advice team answers common questions.

Q: I’m 55 and trying to plan what my retirement will look like. How long will my super last?

A: Everyone’s retirement needs are different and how long your super lasts will depend on:

• when you retire
• your expected living costs and any major one-off expenses, and
• your expected income in retirement.

Your retirement income may come from your super, any Age Pension you’re eligible for and other investments, such as rental income or share dividends.

Use our Retirement income calculator to see whether your super, combined with any Age Pension, could provide enough income for your retirement.

The ASFA Retirement Standard outlines how much Australians typically need each year for a modest or comfortable standard of living.

Q: When I retire from work, do I automatically get the Age Pension? How do I know if I qualify and when should I apply?

A: No, the Age Pension isn’t automatic when you stop work. You need to apply and meet a few rules. To get the Age Pension, you must:

• be age 67 or older
• meet the Australian residency rules, and
• pass both the income test and the assets test.

You can apply for the Age Pension:

• online through your  myGov account (linked to Centrelink), or
• in person by visiting a  Centrelink Service Centre.

Applying on time is important. One in three pensioners (and their partners) could be missing out on up to $46,000 a year because of late Age Pension applications¹.

Lodge your application 13 weeks before you turn 67. Payments are only backdated to the date you lodge your application.

We have a new Age Pension calculator that makes it easier:

• find out if you’re eligible in under 5 minutes
• estimate your potential fortnightly income, and
• learn when to start your application to avoid missing out.

Q: I have a Super Income Stream account. I’ve nominated my adult children to receive my super when I die. Will my children pay tax when they receive it?

A: They might.

If your adult children are not considered your tax dependants (for example, they’re independent adults), then super death benefit tax may apply if they receive your super as a lump sum after you die.

The tax can be up to 17% and applies only to the taxable component of your super (not the tax-free component).

There may be ways to reduce the taxable component of your super while you’re still alive, we recommend you get financial advice to understand your options.

Call our Advice team on 1300 361 784 from 8.30am to 6pm (AEST/AEDT) Monday to Friday.