Women and super (Part 3): Making the most of your assets after retirement

This is the final article in our three-part series on women and super, focusing on issues and strategies for women who have retired.

We know that women tend to retire with lower super balances than men and are expected to live longer on average, a combination that can lead to disappointing retirement income. After finishing work, you may feel that it’s too late to make a difference, but many possibilities remain.

If you have retired, these tips can help you make the most of your super and improve the chances of a comfortable retirement.

1. Check the structure of your super accounts

The type of account you use for your super can have a significant impact on your overall position. You could have savings in an accumulation account, simple account-based pension, or a lifetime income stream (including defined benefits). Some fixed-term income streams also exist, although they are uncommon.

There are strong incentives in place to encourage you to use your super to invest in a retirement income stream (pension or annuity). Investment earnings on these accounts are tax-free, compared with 15% tax on earnings for accounts in the accumulation phase. If you choose a lifetime product for a portion of your balance, you guarantee that income won’t run out and you may receive a higher rate of Age Pension.

Many retirees miss out on these benefits by leaving money in accumulation accounts or not considering lifetime income streams.

Of course, there are exceptions to every rule, and a retirement income stream doesn’t suit everyone. For example, you may not want to be forced to withdraw money from your super every year.

2. Review payments from any account-based pensions

When you have a non-lifetime account-based pension in your super fund, actively managing it can be critical. Your annual payment amount is flexible and can determine whether you’re comfortable or living frugally.