Grow your income in retirement with an MTAA Super retirement income stream
George turned his super into an income stream when he retired.
He used the regular income from his Industry SuperFund to top up the pension. Hear from George himself.
What is a retirement income stream?
An income stream also referred to as an income payment, pension payment or draw-down is simply a way of receiving a regular income, and it’s how some retirees access the money that they have built up in their super fund. It is flexible and tax-free for people over 60 years of age.
Why does it matter?
The Government Age Pension is $794.80 per fortnight for a single and $599.10 each for a couple. For most people this alone won’t be enough to fund the type of retirement they would like – this shows the importance of having other income, especially from super.
When you retire and you have superannuation, you generally have the option of:
Getting your super fund to pay you a regular income stream
Withdrawing your super as a lump sum
Or a combination of a. and b.
More Australians are realising the benefits of getting their super fund to pay them a regular income via an income stream. This option allows you to start accessing your super while the balance remains invested. Often you can also supplement your income stream with the Government Age Pension (see below).
How does an MTAA Super income stream work?
Most income streams are account based, that is, you set up an account with your super fund, transfer a portion of your super to the account, and then your fund pays you a regular sum, pre-determined by you. It’s like a regular income. It’s your money and you stay in control.
What’s more, the balance of your income stream account continues to be invested – just as it did while you were working.
MTAA Super offers two common income stream products:
Motor Trades Association of Australia Superannuation Fund Pty Limited ABN 14 008 650 628, AFSL 238 718 has engaged Industry Fund Services Limited (IFS) ABN 54 007 016 195 AFSL No 232514 to facilitate the provision of financial advice to members of MTAA Super. Advice is provided by financial planners who are Representatives of IFS. Fees may apply. Further information about the cost of advice is set out in the IFS Financial Services Guide, a copy of which is available by calling1300 138 848. IFS is responsible for any advice given to you by its Representatives.