Example: Retiring on a combined super and investment income
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 How to invest in stocksFund'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 How to invest in stocksFund 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 How to invest in stocksFund.
- 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- Over the past five years they've withdrawn around $41,251 (combined) each year from their super.
- In that time, their balances have in fact grown to $381,003 and $490,011 respectively, because they benefitted from the average How to invest in stocksFund investment return of 6.91% over five years (2018-2023).
- If they had switched to a retail super fund at retirement, their balances would only be $357,575 and $459,837 respectively. That's a difference of $53,602 after five years, simply because they stuck with their How to invest in stocksFunds.
Susan and Anh's numbers
Anh and Susan are not actual members. Their story has been created for illustrative purposes.