As we move into retirement the temptation to withdraw all our super at the one time before drawing on our pension can be quite an enticing one. But this isn’t necessarily putting us in a good position to enjoy a happy, healthy life in our senior years.
We should be looking at our nest egg less as a pot of gold at the end of the rainbow, and more as a sustainable source of income that will ensure our golden years are some of our most enjoyable.
We’ve produced a simple guide to additional source of income in retirement. Having a few of these in play will ensure you have a happy, healthy retired life.
Super is often considered your main source of income after retirement and the chief benefit is most people pay less tax on super than if they had invested outside. You can also take money out as you need it, making it a flexible source of income after work.
2. Investments outside super
A key to retirement income is diversity and having investments outside super can potentially be lucrative for retirees. That being said, it’s also risky to have skin in the game and market movements that are outside your control can put your money at risk.
3. Part-time work
With today’s seniors living much longer than previous generations, many are turning to part-time work as a way of easing into semi-retired life before full retirement. If you’re working part-time and you’ve reached age pension age it may impact the amount of age pension you can claim, but it’s a good way to supplement this income.
4. Home equity release
If you own your home and are in desperate need of some extra cash, you might want to consider a home equity release. However, this move is one that is inherently risky and it’s recommended you seek financial advice before considering such a step.
5. Selling the family home
By the same token if you own your home and are looking to downsize, selling it can free up quite a cash for retirement while securing a more-sustainable living situation. It can also free up money from investments in shares, term deposits or managed funds.
Have you considered any of these additional sources of income in retirement? Where do you draw most of you money from at the moment?
Share your story in the comments.