Pre-retirement pensions

A pre-retirement pension allows you to draw a regular income from your super while you're still working, provided you have reached your preservation age. You can continue contributing to super while drawing the pre-retirement pension.

The aim of a pre-retirement pension is to give you greater flexibility as you begin the transition into retirement, but there are restrictions on accessing your super as a lump sum during this 'pre-retirement' phase.

Many people will not have sufficient super to last through their retirement, so accessing their super earlier will only exhaust their funds that much sooner. For others, drawing a pre-retirement pension and combining it with a sound investment strategy, while continuing to do some work, may boost their levels of super at retirement.

Professional advice at this point can make all the difference. There are many issues to consider, including the tax and social security implications of any decision you make.

Seek advice on the investments and strategies that will suit you

Whether you're an expert or novice investor, good advice is important, particularly as you get closer to retirement. Commonwealth Financial Planners specialise in helping you make the right investment decisions. A Commonwealth Financial Planner will work with you to develop a detailed plan designed to achieve your personal financial goals for retirement.

If you would like to know more about how a Commonwealth Financial Planner may be able to help you, or to make an obligation-free appointment with a Commonwealth Financial Planner call 1800 241 996 or email us.

 

Important information: The information contained on this web page is of a factual nature only and is not intended to constitute financial product advice. It has been prepared by Commonwealth Financial Planning Limited without considering your individual objectives, financial situation or needs. You should consider its appropriateness in light of your circumstances and consider seeking professional advice relevant to your individual needs before making a decision based on this information.

Commonwealth Bank customers who wish to obtain information about Retirement Planning may do so by contacting a Commonwealth Financial Planner. Commonwealth Financial Planners are representatives of Commonwealth Financial Planning Limited ABN 65 003 900 169, AFSL 231139. Commonwealth Financial Planning Limited is a wholly owned but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124