Once you stop work and your salary ceases at retirement, you will need to generate replacement income from resources accumulated.

Ideally we want retirement income to be:

• Certain – not only is it ideal for income to be regular and secure to help meet living costs, but it needs to grow over time to keep up with inflation.
• Tax Free– if planned appropriately, most self-funded retirees will pay very little or even no tax in retirement. Utilising the tax concessions available in super, harvesting franking credits, ownership structures and income splitting are all important considerations.
• Sustainable – Life expectancies are generally increasing and Australia has one of the highest life expectancies in the world. It is not unreasonable for clients to expect to live into their late 80s or even 90s. Strategies for managing or minimising longevity risk (the chance that a person will outlive their savings) should be implemented as part of the financial plan.

Income stream products generally form a major part of a financial strategy to meet income needs. They are an efficient method of earning regular income but can also be used strategically to minimise taxation. Some income streams can also be purchased with ordinary money, but the tax-free nature of superannuation income streams once over the age of 60 may make superannuation options more desirable where available. The government Age Pension provides supplementary income and may assist in making funds accumulated last longer through retirement.

Areas we can assist with include:

• Managing the Pension Transfer Balance Cap
• Managing cash flow
• Projections to assess longevity of capital
• Account-based income streams
• Transition to retirement (TTR) income streams
• Annuities
• Centrelink Age Pension