Are you considering retirement?

Are you ready to retire?

Retirement is a major lifestyle change. Wherever you are in life now, chances are your super will play a major role in supporting you financially in the future. Being financially ready is a key factor that will influence your decision to stop working. However, your health, wellbeing and social interactions can also impact the lifestyle you lead.

Before making a decision about your future in or out of the workforce, think about the changes you might encounter. Ask yourself these questions:

• How much income do I need and for how long will I need that income?
• Where will my income come from?
• Who else will be relying on this income and for how long?
• Am I ready for full-time retirement?
• Am I in good health?
• Are my friends still working?
• Is my family ready for me to stop working?
• Can I use annual or long-service leave to take an extended holiday and ‘trial’ retirement?
• Is working part-time or exploring other flexible working arrangements an option?
• Could a Transition to Retirement (TTR) arrangement work for me?

Brighter Super’s What Age Can I Retire Calculator can help take the guesswork out of your retirement planning.

By entering details such as your age, income, current super balance, and additional savings, you’ll receive a personalised estimate of your potential retirement age and expected annual income. It may help you plan a clearer, more confident path to your ideal retirement.

How much money is enough?

As you approach retirement the question ‘How much money is enough?’ becomes more pressing. Financial security means different things to different people. A modest lifestyle might be adequate for some while others may prefer a more comfortable lifestyle after work.

The lifestyle you lead in retirement will depend on the assets you’ve accumulated over time (including your super and other investments and savings), whether you are eligible to receive the Age Pension or other entitlements, as well as your health and life expectancy.

What the experts say

The Association of Superannuation Funds Australia (ASFA) is the peak policy, research and advocacy body for the superannuation industry in Australia. ASFA releases a Retirement Standard which sets out expenses for both a comfortable and modest lifestyle for both couples and singles. ASFA estimates the superannuation balance required at age 67 to meet these lifestyles.

According to the ASFA Retirement Standard for the September 2024 quarter, the amount of income required for those around age 67 is:

* These amounts relate to expenditure by the household and assume that the retiree(s) own their own home.

Understand your spending habits

To understand how much you need, it’s important to understand your spending habits. Setting up a budget in the lead up to retirement will help you monitor your actual spending against your expected spending and determine how much you need to fund your lifestyle.

The Australian Securities and Investments Commission’s (ASIC) MoneySmart website has a comprehensive suite of tools, apps and other resources to help you track your spending and manage your savings during retirement.

Calculate your needs

It’s likely your super will play a major role in supporting you financially in the future. Our Retirement income calculator can help you work out how much you’ll need for the lifestyle you want in retirement, the income your super balance will generate, and any shortfall.

With our What Age Can I Retire Calculator you’ll receive a personalised estimate of your potential retirement age and expected annual income. It may help you plan a clearer, more confident path to your ideal retirement.

You can also use our Salary sacrifice calculator to consider ways to close any gaps and grow your super with extra contributions.

Plan ahead

When you’re retired, it’s important to have strategies in place that will maintain or strengthen your financial position over the long-term. Planning for that early will give you greater certainty over your income and your future lifestyle.

You can start this process by:

• Putting money away for emergencies and unexpected events. Make sure these funds are easy to access and consider a conservative investment approach.
• Accounting for future expenses, such as major repairs or maintenance for your home, a new car, travel costs as well as expenses to help you fully participate in your planned retirement activities.
• Setting financial goals and make sure you’re on track to achieve them. Review your financial situation regularly and take a suitable investment approach that protects your short-term income needs against risk and inflation over time.
• Considering the way your finances are structured and make sure you receive applicable Centrelink entitlements such as the Age Pension and health care cards. You may be able to take advantage of government concessions and discounts available through your Seniors Card, or via the dedicated ‘seniors’ sections on your local, state and federal government websites.

When can I access my super?

You can usually access your super as a lump sum or pension (or a combination of both) when you:

• permanently retire after reaching your preservation age,
• reach age 60 and then either stop working or change jobs, or
• turn 65 (even if you are still working).

For information about accessing super and your preservation age, read our Accessing your super information sheet.

How can I nominate my partner as a beneficiary?

If you want your partner to receive your super benefits – including any insurance on your account – it’s important to make a non-lapsing binding death benefit nomination. This is a legal instruction that binds Brighter Super to pay your benefit to your nominated beneficiaries.

Without a binding nomination, Brighter Super is obligated to follow legislated and Trust Deed guidelines which can include identifying all potential dependants before determining the actual beneficiary. This process can take time, may not align with your wishes, and may complicate things for your beneficiaries.

You can nominate a beneficiary online in less than 10 minutes with no need for anyone to witness your nomination. Simply log in to Member Online and select ‘Beneficiaries’ then follow the directions.

How do I manage my super?

Whether you’re looking for a regular income stream in retirement or prefer lump-sum payments, Brighter Super has three simple options for managing, investing and accessing your superannuation.

1. Accumulation account

This is the account you contribute to while you work to grow your super. If you leave work, your superannuation can remain in an Accumulation account until you are able or ready to access it or start a pension.

With this account:

• You can contribute to it and transfer your other super into it to grow your retirement savings.
• Any employer can pay super for you into this account.
• You can access lump-sum payments once a condition of release is met.
• There’s no obligation to withdraw funds.
• You may be able to access insurance cover (conditions apply, see our Insurance guide for details).

Find out more in our Accumulation account Product Disclosure Statement.

2. Transition to Retirement Pension account

A Transition to Retirement (TTR) Pension account lets you receive income from your super while you’re still working (as long as you’ve reached your preservation age).

You can use a TTR Pension account to:

• top up your income as you work less or take a lower paid position leading up to retirement;
• continue working full-time and receive money from your super as additional income; or
• potentially reduce your tax bill and boost your super in the lead up to retirement by combining a TTR Pension account with salary sacrificed contributions to your Accumulation account.

With this account:

• You can start with a minimum investment of $20,000.
• You can receive between 4% and 10% of the account balance as a regular income stream.
• You need to take at least one pension payment each financial year and choose from fortnightly, monthly, quarterly, half yearly or annual payments.
• A lump sum or reversionary pension can be paid to dependants upon your death.

However, you’re not able to contribute to a TTR Pension account or take lump-sum payments.

Find out more about the benefits of opening a Brighter Super Pension or read our Pension Product Disclosure Statement.

3. Pension account

A Pension account can provide you with a regular income in retirement and the flexibility to take lump sum withdrawals. And if you’re aged 60 or over, your pension income is tax free.

With this account:

• You can start with a minimum investment of $20,000.
• There’s an annual minimum payment amount based on your age and account balance e.g. 4% for under 65-year old with no maximum payment restrictions.
• You need to take at least one pension payment each financial year and choose from fortnightly, monthly, quarterly, half yearly or annual payments.
• You can withdraw unlimited lump sums at a minimum of $1,000 each.
• Option of reversionary pension to be paid to dependants upon your death.

Alongside the flexibility of our main pension product, Brighter Super offers an easy and convenient way to manage your Pension account. It’s called Retire Easy Pension, and it gives you pre-selected investment and payment options that automatically update over time. Retire Easy Pension has been designed to balance your needs for a regular income in the short term with savings growth over the medium to long term. Your regular income is paid each month, automatically set to meet the government’s minimum pension payment requirements.

Find out more about the benefits of opening a Brighter Super Pension or read our Pension Product Disclosure Statement.

Members with a defined benefit

Special conditions apply for members with a defined benefit account (closed to new members).

Read the defined benefit guide that applies to you or contact us to discuss your options.

How much tax will I pay?

Super is taxed at various stages of its lifecycle. The type and amount of tax that applies will vary depending on your age, the contributions you make, your benefit amount and whether you take it as a lump-sum or pension.

Our Superannuation tax information sheet explains each different type of tax applicable in detail.

Government help

If you’re planning for retirement or considering working past the Age Pension age, we encourage you to contact Services Australia to find out about the Australian Government payments and services available to you.

Visit servicesaustralia.gov.au for information including contact details and a service centre locator.

Could I benefit from financial advice?

Brighter Super’s trusted and reliable team of qualified financial advisers can work with you to plan a strong financial future. Our personalised advice service takes into account your individual circumstances, and will help you:

• understand our products and options
• learn about the potential tax implications of your decisions
• protect you and your family in the event of death, illness or disability
• discover if you’re on track to reach your retirement goals
• improve your understanding of the Centrelink benefits you could receive and the potential impact these could have on your super.

Find out more on our financial advice site.