Choosing the industry super fund that’s right for you is vital to ensure you can live the life you desire, after you retire.
Planning for retirement
Once you retire from the workforce, the money you require to meet the costs of living and support your lifestyle will tend to come from three main sources -
- your personal savings and investments acquired during your working life,
- your accumulated superannuation, and
- the means-tested Federal Government Age Pension.
Many Australians reaching retirement age don't have enough private savings to support themselves in retirement. The Government Age Pension is a means-tested welfare safety-net that helps provide income support to older people once they reach retirement age.
The maximum Government Age Pension provides approximately only 40% of the income typically required for a comfortable lifestyle.
Your accumulated super is designed to supplement the income you receive from private savings and the Age Pension by providing an additional source of funds from the superannuation you accumulated in your working life.
To have a financially secure and enjoyable retirement, it's important that you consider the ways to build your super.
Super pensions and centrelink
The Federal Government Department of Human Services manages health, social and welfare payments and services, including those administered by Centrelink. The Centrelink Age Pension is an income support payment that helps give older people a sufficient standard of living in retirement.
Like superannuation-based pensions, you must meet minimum age requirements to receive the Age Pension. Your eligibility for the Age Pension also depends on the value of your assets, the income you earn and other individual circumstances.
Generally, you may still be able to receive the Age Pension along with your Media Super pension. However, it is important to note that:
- the balance of your super account may count toward the Centrelink assets test, and
- any payments you receive from your super pension may be considered in the Centrelink income test.
As the rules can be quite complex, we recommend you seek advice from a licenced financial adviser before commencing a Media Super pension.