Peter and Jeff’s story
Both retired with $200,000 in super
Peter and his friend Jeff are both 72. They both retired in the same year at age 67 and now catch up regularly to go fishing together.
Peter and Jeff were both paid super during their working lives and each saved $200,000 with First Super.
What happened when Jeff switched funds
Before he retired, Peter spoke to one of First Super’s financial planners about how to maximise the money he had saved. His planner recommended that he open a First Super Retirement Income account and start drawing down on his money gradually.
This meant he could still access the Government Age Pension while the balance of his saved money continued to grow during the early years of retirement, before he gradually draws down on all of it.
He knows he has the flexibility to withdraw some additional money for emergencies (or holidays!) if he needs to.
Jeff on the other hand, switched to a retail super fund.
Both Peter and Jeff withdrew 5% of their balance each year for the first five years of retirement and also accessed the Age Pension to top up their incomes.
After the first five years of retirement Peter had a balance of $213,075 in his First Super Retirement Income account, while Jeff only had $204,184 in his retail account.
That’s an additional $8,891 for Peter, simply by sticking with First Super.
We’re here to help. So, let’s talk
If you have any questions, call our Member Services team on 1300 360 988, email us or use the Live Chat. The 5% drawdown may not be right for you, so book an appointment with one of our financial planners to discuss your situation or click the link below to find out more about our Retirement Income account.
Peter and Jeff 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 show average difference in pension net benefit results after the first 5 years of retirement of the main balanced investment option of First Super’s pension product and a sample set of retail pension products tracked by SuperRatings with a 5 year performance history to 30 June 2023 (23 funds), taking into account historical earnings and fees. The model assumes a drawdown amount of 5% per annum, which is deducted monthly. Outcomes vary between individual funds. Modelling performed on 6 October 2023 using data as at 30 June 2023. See retirement assumptions for more details about modelling calculations and assumptions.
First Super financial planners are authorised representatives of Industry Fund Services Limited (ABN 54 007 016195, AFSL 232514).
Issued by First Super Pty Ltd (ABN 42 053 498 472, AFSL 223988), as Trustee of First Super (ABN 56 286 625 181). This article contains general advice which has been prepared without taking into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you. Read the Product Disclosure Statement (PDS) before making any investment decisions. To obtain a copy of the PDS or Target Market Determination please contact First Super on 1300 360 988 or visit firstsuper.com.au/pds.