Anh and Susan have been married for more than thirty years. They both retired five years ago after Anh turned 60. Susan was 61. They both held professional careers but looked forward to retirement.

Financially, Susan and Anh have always been quite comfortable. They don't have children and own an investment property which is rented out full time. Both have earned super for a large part of their working lives so when it came time to prepare for retirement, they spoke with their Industry SuperFund's financial planner about how to maximise their income in retirement.

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. However, a combination of the rental returns and regular income from their super funds via income streams would be a sensible option. That way, they would receive regular payments and the balances of their Industry SuperFund would continue to grow during the early years of retirement before they gradually draw down on all of it.

Susan and Anh wanted flexibility and control of their money so they could take extra out from time to time if they needed, which their Industry SuperFund income stream was able to provide for them.

Taking their financial planner's advice and sticking with their Industry SuperFunds would also mean their balances grew by more than if they had switched to a retail fund.

Here's what that looked like:

• When they retired, Susan's super balance was $350,000 and Anh's super balance was $450,000. They converted their super accounts into income stream accounts with their Industry SuperFunds.
• When they retired, their investment property was worth around $500,000 with an annual income of on average around $26,282.
• Over the past five years they withdrew a combined amount of on average around $40,536 each year from their Industry SuperFund income stream accounts.
• Susan and Anh experienced an average five year Industry SuperFund investment return of 6.90% (2019 - 2024).
• Over the past 5 years their balances have grown to $380,999 and $489,988 respectively.
• 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

Susan and Anh are not actual members. Their stories have been created for illustrative purposes.

Past performance is not a reliable indicator of future performance and should never be the sole factor considered when selecting a fund.

Comparisons modelled by SuperRatings, commissioned by ISA and shows average differences in pension net benefit of the 'main pension Balanced option' of 7 Industry SuperFunds and retail funds tracked by SuperRatings, over a 5 year period. A 'main pension Balanced option' being the fund's largest pension Balanced option where 60% to 76% of the fund's assets are invested in growth investments. Where a fund does not have a Balanced option, the option closest to SuperRatings’ benchmark range of 60% to 76% growth investments is used. Outcomes vary between individual funds. Modelling performed on 16 October 2024 using data as at 30 June 2024. See www.industrysuper.com/assumptions for more details about modelling calculations and assumptions. Consider a fund's Product Disclosure Statement (PDS) and your personal financial situation, needs or objectives, which are not accounted for in this information, before making an investment decision. ISA Pty Ltd ABN 72 158 563 270 Corporate Authorised Representative No. 426006 of Industry Fund Services Ltd ABN 54 007 016 195 AFSL 232514.