In this guide
As you approach retirement, a crucial decision awaits about what to do with your superannuation benefits. That decision is even more complex if you also have significant assets outside super.
You may have built up investments outside super over your working life or you may have received a large inheritance you can’t put into your super account due to contribution caps. These situations could put you in a position where you don’t need to draw on your super, at least in the short term.
The decision then is whether you should commence an income stream from super or leave it the accumulation phase while utilising investment income outside super. (You could, of course, take the middle way and draw on both your super and non-super savings, but for simplicity we will restrict discussion to a comparison of the two main options.)
Need to know: There are no rules forcing you to transfer your super from accumulation to retirement phase when you retire or reach Age Pension age. You can choose the best course of action, depending on your personal circumstances.
Learn more about your options when converting your super into retirement income.
So, if you are undecided about whether to draw retirement income from a super pension or non-super investment income, we outline the key pros and cons of these two options before looking at a case study.
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