Tracey's retirement story - retired with $50,000 in super
Tracey's retirement story - retired with $50,000 in super
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Tracey’s story

Tracey is a mum of four grown up children and a grandmother to seven. As well as raising her children she juggled part-time work as an administration assistant, picking up more hours as her kids grew older.

She separated from her partner years ago and now lives by herself in a rented unit near the beach. Now 70, she’s been enjoying retirement for the past five years. Due to being in and out of the workforce, her super balance at 65 was $50,000 and she knew she would need to rely on the Government Age Pension to fund her retirement.

Before retiring, she spoke with one of First Super’s financial planners about how to make the most of her $50,000. They advised her to draw down on her super through a Retirement Income account to top up her Age Pension. That would maximise the amount of Age Pension she would receive and allow her $50,000 to continue to grow a little in the early years of retirement, before she gradually draws down on all of it.

Here’s what that looked like:

  • Her super balance was $50,000 when she retired, which she converted into First Super Retirement Income account.
  • Over the past five years she withdrew on average around $2,511 each year to top up her Age Pension. For Tracey, that extra $2,511 comes in handy for the grandkids at Christmas time and to fund a holiday every year.
  • Her annual income over the past five years (from her Retirement Income account and the Age Pension) has been about $31,607.
  • Tracey experienced an annualised five-year First Super investment return of 6.95% (2019 – 2024)1.
  • Today, First Super balance has grown to $54,420.
  • If Tracey had switched to a retail super fund at retirement, her balance would only be $51,314.

That’s a difference of $3,106, simply because she stuck with First Super.

Tracey’s numbers

Account balance
invested after income taken		 Income stream payments Age Pension payments Total income
2019/20 $50,000 $2,500 $27,648 $30,148
2020/21 $46,919 $2,346 $28,181 $30,527
2021/22 $52,009 $2,600 $28,431 $31,031
2022/23 $49,982 $2,499 $29,468 $31,968
2023/24 $52,226 $2,611 $31,751 $34,363
Closing balance $54,420

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.

Tracey is not an actual member. Her story has been created for illustrative purposes.

1Past performance is not a reliable indicator of future performance and should never be the sole factor considered when selecting a fund. Investment return figure follows SuperRatings’ Net Benefit Modelling (including the returns after fees are taken out) applied to all Industry SuperFunds’ performance figures, which is different from First Super’s 7.01% calculated return for the same period.

Comparisons modelled by SuperRatings, commissioned by ISA and show average difference of the ‘main pension Balanced option’ of First Super 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 firstsuper.com.au/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 our PDS & Publications page.