Look at ways to make your retirement income last as long as possible

LOTS of people look forward to the day they finish working so they can “splurge” on their lump sum super payout, but you need to make sure it lasts.

Portrait of a cheerful woman embracing a senior man from behind against sky

LOTS of people look forward to the day they finish working so they can “splurge” on their lump sum super payout.

But these days, many retirees are deciding that making the most of their super means ensuring it lasts as long as possible.

Setting up a retirement income stream is one way of helping your money go further. It simply means withdrawing set amounts of your super at regular intervals — such as fortnightly or monthly — to help cover your living expenses.

Often the money can be used to top up a full or part age pension.

It doesn’t even necessarily mean “losing” money. By withdrawing only small amounts, most of your money stays invested, just as it was while you were working.

Anne and Nick, two retirees from Torquay, Victoria, had an even nicer surprise.

“After four years, we had more money than we started with,” said Anne. They now alternate between two fortnightly payments — the government age pension one week, a small amount of super the next.

“We have plenty of money to go out, to pay for groceries and any major bills we might have coming in, then we can withdraw that as a lump sum,” said Anne.

According to Paul Schroder, AustralianSuper’s Group Executive, Membership: “An income stream is just like receiving a regular pay packet in retirement, with the additional benefit that you can still access your money at any time, for one-off

or unexpected expenses.”