Retirement feels like it\u2019s still far off for some of us, but the closer you get to it, the more real it becomes. One of the biggest financial decisions you’ll face is how to draw from your superannuation savings once you stop working. It\u2019s not just about how much you have saved up\u2014it\u2019s also about how to make that money last, and what method will work best for your needs. Here\u2019s a breakdown of your options, and why it matters to start planning now.<\/p>\n\n\n\n
The most popular choice for retirees in Australia is the account-based pension. This allows you to convert some or all of your super balance into an income stream while keeping your remaining balance invested. The beauty of this is the flexibility\u2014you’re in control of how much you withdraw (as long as it meets the government\u2019s minimum withdrawal requirements). And the best part? The income and investment earnings from an account-based pension within super are tax-free once you’re fully retired.<\/p>\n\n\n\n
However, these pensions come with a catch. While they provide flexibility, the investment returns are not guaranteed. This means you could be exposed to market fluctuations, and it can be hard to predict how long your super will last. If you don\u2019t have a clear withdrawal strategy, you might run out of funds earlier than expected, explains The Conversation.<\/a><\/p>\n\n\n\n