Anh and Susan both retired five years ago, when Anh was 60 and Susan was 61
They've always been quite comfortable financially and own an investment property which is rented out full time. Before retiring, they spoke with their Industry SuperFund's financial planner about how to maximise their income in retirement, who mentioned that with an investment property worth around $500,000 and super balances of $350,000 and $450,000, they wouldn't have access to the Government Age Pension.
Instead, a combination of the rental returns and regular income via their super could be a good option. They would receive regular payments and the balances of their Industry SuperFund would continue to grow until they draw down on all of it.
Here's what that looked like:
- When they retired, Susan's super balance was $350,000 and Anh's was $450,000. Both were converted to income stream accounts with their Industry SuperFund.
- At the same time, their investment property was worth around $500,000 bringing an average annual income of around $26,282.
- Over the past five years they've withdrawn around $40,536 (combined) each year from their super.
- In that time, their balances have in fact grown to $380,999 and $489,988 respectively, because they benefitted from the average Industry SuperFund investment return of 6.90% over five years (2019-2024).
- If they had switched to a retail super fund at retirement, their balances would only be $362,393 and $466,086 respectively.
That's a difference of $42,508 after five years, simply because they stuck with their Industry SuperFunds.
Susan and Anh's numbers
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