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As a proud profit-to-members fund, we are committed to improving member outcomes in retirement.
The Retirement Income Covenant ('the Covenant') has built on the important work we do every day to help our members achieve their best possible retirement.
The Covenant requires super fund trustees to develop a Retirement Income Strategy for all members who are approaching retirement or who have retired.
A summary of the retirement income strategy is available for download.
This summary may be a useful guide for our members to help them understand what retirement strategies may best support them in retirement.
While consideration has been given to the different needs of our members as they approach retirement or at retirement, we recognise that individual member circumstances may vary. We recommend members talk to a qualified financial planner for advice tailored to their individual circumstances.
Our strategies
As your super fund, we are required to formulate a retirement income strategy for classes or sub-classes of members who are retired or approaching retirement. A summary of those strategies can be seen below.
These strategies are designed for general use only and do not consider personal circumstances such as risk tolerance, health, financial dependents, lifestyle expectations etc.
We recommend members seek personal tailored financial advice when implementing their own retirement income strategy.
Please refer to our guide for the full details of these strategies including the assumptions used when constructing and applying to the period of retirement.
The following strategies are designed for members who are at the point of retirement and have met a condition of release for superannuation. ’At the point of retirement’ is defined as being within the first two years of retiring.
Below is a summary of the strategies contained within our guide.
| Sub-class | Objective | Current super balance | Aim | Income target | Product(s) | Investment strategy |
| Retirement Modest | To achieve security and longevity of income and have flexible access to capital | $20,000 - $270,000 | Meet income target by drawing down from superannuation to top up government age pension, while retaining full access to cover unforeseen expenses (e.g. health) | $30,582 | Equip Super Retirement Income account | MyPension |
| Retirement Comfortable | To achieve longevity of income and have flexible access to capital | $270,000 - $900,000 | Meet income target by drawing down from superannuation to top up government age pension, while retaining full access to cover unforeseen expenses (e.g. maintain desired lifestyle, health) | $48,266 | Equip Super Retirement Income account | MyPension |
| Retirement Choices | To achieve longevity of income, have flexible access to capital and minimise tax | $900,000 - $1,700,000 | Meet income target by drawing down from superannuation, while retaining full access for ad-hoc lump sum requirements (e.g. maintain desired lifestyle, health, inheritance) | $48,266 (or minimum drawdown rate, whichever is the highest) | Equip Super Retirement Income account | MyPension |
| Retirement Freedom | To have flexible access to capital, sustainability of capital and minimise tax | Greater than $1,700,000 | Meet income target by drawing down from superannuation, while retaining full access for ad-hoc lump sum requirements (e.g. maintain desired lifestyle, health, inheritance) | $48,266 (or minimum drawdown rate, whichever is the highest) |
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When it comes to implementing a retirement income strategy Equip Super believes the following can assist members to optimise their retirement outcomes:
- Seeking financial advice to determine and implement personal financial strategies;
- Increasing financial knowledge and literacy through education; and
- Conducting self-assessments, goal setting and tracking progress.
We aid members with these items through the provision of benefits and facilities, such as an online member portal, mobile app, financial planning services, seminars and workplace education sessions, educational content, online tools and calculators, regular communications, inbound and outbound call centre services.
You can learn more via our Explore and Learn pages.
The following strategies are designed for members aged 50 and older who do not consider themselves to be retired.
Below is a summary of the strategies contained within our guide.
| Sub-class | Objective | Current super balance | Aim | Options available | Product(s) | Investment strategy |
| Pre-Retirement Modest | To protect super balance and maximise contributions to attain largest balance possible | Less than $500,000 | Attain highest superannuation balance possible through maximising contribution caps |
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| Pre-Retirement Comfortable | To maximise tax efficiency and contributions to attain largest balance possible
| Greater than $500,000 | Attain highest superannuation balance possible through maximising contribution caps |
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When it comes to implementing a retirement income strategy Equip Super believes the following can assist members to optimise their retirement outcomes:
- Seeking financial advice to determine and implement personal financial strategies;
- Increasing financial knowledge and literacy through education; and
- Conducting self-assessments, goal setting and tracking progress.
We aid members with these items through the provision of benefits and facilities, such as an online member portal, mobile app, financial planning services, seminars and workplace education sessions, educational content, online tools and calculators, regular communications, inbound and outbound call centre services.
You can learn more via our Explore and Learn pages.
Determining your own retirement income strategy
As noted above, our retirement income strategies are designed for generic use and do not consider personal circumstances.
To determine your own retirement income strategy, you’ll need to consider some key items and make decisions about your retirement lifestyle.
When it comes to implementing a retirement income strategy Equip Super believes the following can assist members to optimise their retirement outcomes:
- Seeking financial advice to determine and implement personal financial strategies;
- Increasing financial knowledge and literacy through education; and
- Conducting self-assessments, goal setting and tracking progress.
Below are some considerations that may help you to determine your own retirement income strategy.
With your working life behind you, income in retirement is about what you spend, not what you earn.
Think about how much money you need to meet all the expenses that come with achieving your desired retirement lifestyle. We refer to this money as your income target.
Our easy to use Retirement Lifestyle calculator can help you determine what annual income you might need when you retire. And our more in-depth Retirement calculator allows you to see what you might be retiring with, how long it can last, and what that translates to in annual income.
Our retirement income strategies assume an income target equal to the ASFA Comfortable Standard for singles.
While no one can predict exactly how long their retirement will last, there are resources available that you can use for guidance.
Depending on how long you live, this may mean that your retirement could be longer than your working life.
You’ll need to factor an expected period of retirement into your retirement plan to determine whether your income target is achievable or whether you should reassess your desired lifestyle.
The Australian Bureau of Statistics and the Australian Government Actuary publish life expectancy tables which you may find helpful when considering your own period of retirement.
When developing our Retirement Income Strategy, we’ve utilised a period of retirement of 22 years, based on the Australian Bureau of Statistics average life expectancy of a female aged 65 today. Your own period of retirement could be longer or shorter than this.
Our definition of maximising your retirement income is meeting the income target (the amount needed to maintain your lifestyle) for as long as is sustainable within retirement.
Maximising your income is not about drawing the largest annual income possible from your savings but instead ensuring that you can draw an income that meets your needs for the longest amount of time.
What this means is that while you may have the ability to draw a retirement income that exceeds your income target, if you’re not going to use it then any money over and above the target can be considered as surplus to your needs. It is this surplus that should be used to extend the longevity of your income, helping to ensure that you don’t outlive your retirement savings.
If you don’t have the ability to meet your income target, you’ll need to assess where your retirement income might come from and whether there can be adjustments made to the target itself that will ensure you can draw an income that will sustain your needs for the period of retirement.
Our Retirement Drawdown calculator shows you how you can combine your super with the Age Pension to create an income that meets your retirement lifestyle, and then provides you with a projection of how long your super will last.
There are four key risks associated with funding your retirement lifestyle that you need to consider and balance when making decisions that will maximise your retirement income.
- Investment risk – the chance that the actual value of, or return from, an investment may be less than its expected value or return.
- Inflation risk – the risk that money held today will retain its equivalent value tomorrow.
- Longevity risk – the risk that you will outlive your retirement savings or the ability to receive a retirement income.
- Sequencing risk – the ability to enter or exit the market at a time appropriate to you.
You should understand your tolerance to these risks and consider choosing investments that align with it and the affect that will have on the ability to meet your chosen income target.
Equip Super offers a selection of investments to suit your needs including our set-and-forget MyPension investment strategy.
Our retirement income strategies are designed around the use of our Retirement Income account and the MyPension investment strategy.
By now you may have set your income target, considered your retirement period and determined how to balance the risks to maximise your income.
During that exercise you would have considered how much money you’ll need regularly but have you considered how much you may need on an ad-hoc basis to cover for both planned and unplanned expenses?
Generally having access to funds will be a trade-off between:
- Receiving guaranteed income payments
- An opportunity for higher investment returns
- Limiting your investment choice
Think about whether your income target includes an allocation for large, unexpected expenses or whether you’d like the ability to dip into your savings as needed or at a planned time. Understanding this can help you to choose a retirement product (or combination of products) that will best meet your needs.
You can learn more about accessing your super in retirement here and how your super can be used as an income stream here.
Our retirement income strategy has taken a position that full access to superannuation savings is in the best interest of members when providing generic strategies. We use the Retirement Income account and the MyPension investment strategy in combination with the Age Pension to ensure access while balancing the risks.
Talk to a retirement expert
Our retirement specialists can answer the big retirement questions you might be too shy to ask (or even just the small ones). We can provide you with guidance and support regarding your retirement options, answer your retirement questions, or help you to set up a retirement account.
Call us on 1800 777 060 or book a time to speak to our team today.
Visit our Retirement Centre to learn more.
Have a general enquiry? Contact our Helpline.
Knowledge Hub
Learn about super contributions, retirement, investing and more through interactive modules.
Knowledge Hub
Learn about super contributions, retirement, investing and more through interactive modules.
Additional reading
Can I work part-time in retirement?
Retirement is changing. People are living longer, they’re remaining active, and they’re looking at ways to maintain their lifestyle. Increasingly, that means taking up some part-time work. Read more
Retirement income explained
Building up a healthy superannuation balance is important, but how you access and invest your money in retirement will determine how long it lasts. Read more
How much super do you need to retire?
A combination of your super, the Age Pension, and other investments can work together to provide you with a retirement income that maximises your government entitlements and meets your needs. Read moreWe can help you decide
Getting a little support and guidance from the experts can make a big difference when it comes to choosing the right products for your next chapter and helping you make the move to retirement in the way you want to. And our team is here to help.
We acknowledge all First Peoples of the beautiful lands on which we live and work, and their enduring knowledge and connections to Country. We honour the wisdom of and pay respect to Elders past and present.