Learn how to make your money last in retirement without returning to work.

Wondering how to manage your money in retirement and make your super last longer? You're not alone.

How much money do you need to live on in retirement?

According to Moneysmart, the general rule is you'll need at least two thirds of your current yearly income.¹ This rule assumes you own your home outright.

The Association of Super Funds in Australia (ASFA) makes a more detailed estimate. According to them, this is roughly how much you'd need per year if you were retired today and owned your home outright.

(December 2024 figures. See the latest numbers at ASFA’s Retirement Standard.)

A modest lifestyle covers essential costs and basics only. A comfortable retirement on the other hand, allows for a bit more, like the occasional holiday or treat. Bear in mind that these figures are guides only. They're based on assumptions that could vary a lot from your personal situation. Your best bet is to work out a detailed budget that accounts for your actual living expenses.

---

Strategies for managing money in retirement

If you're eligible to access your super, and you know what you'll need to live on, you can work out a strategy to make the best use of your super as income in retirement. We've listed 3 options we offer at ART. You can use some of these options together and still get the Age Pension if you're eligible.

Open a Retirement Income account (or an account-based pension)

To turn your super into a regular income, you can open an account-based pension. If you're a member with us, this is called an Income account. When you open your account, you can choose how much to open it with – this could be all or part of your super balance, but you'll need a minimum of $30,000. Set up regular payments into your bank account to give yourself an income stream.

Account-based pensions like our Income account have several advantages:

• Tax-free: Your investment earnings are tax-free, and so are your income payments.

• Investing: Your super's still invested, which means it can keep earning returns, even while you're getting payments.

• Works with other income streams: You can use our Income account with a Lifetime Pension, below.

• Age Pension: If you're eligible, you might also be able to get the Age Pension.

• Retirement Bonus: If you're a member with us and you're eligible, we pay you a Retirement Bonus when you open an Income account or purchase a Lifetime Pension.

Note: If you have a high total super balance, be aware that the Australian government has rules about how much you can transfer into a retirement phase account.

Withdraw super as a lump sum

If you're eligible to access your super, you can withdraw some or all of your money from your Accumulation account directly into your bank account as a lump sum. You can also make lump sum withdrawals from an account-based pension (our Income Account).

You might withdraw your super as a lump sum from your Accumulation account in these situations:

• Reduce debt: If you need to pay off debts or a mortgage when you retire, you can withdraw a lump sum from an Accumulation account to do this.
• You can't transfer it to a retirement account: If you have a high total super balance, you might not be able to transfer your entire super balance into a retirement phase account because you'll go over your personal transfer balance cap. In this case, you could either leave the extra super in your Accumulation account, or withdraw it.

Keep in mind that any money you withdraw from your Accumulation account is no longer super. So if you invest it and it earns returns, those earnings may not be tax-free.

Buy a Lifetime Pension

Our Lifetime Pension is a product we offer that gives you fortnightly payments in retirement that never run out. Unlike an account-based pension, you purchase a Lifetime Pension for a specific amount. Your purchase amount goes into a pool of funds that's invested in the Balanced Risk-Adjusted investment option for Retirement Income accounts.

The advantages of a Lifetime Pension account include:

• Works with the Age Pension: You might still be eligible to get some Age Pension or get higher payments with a Lifetime Pension.

• Income for life: When you buy a Lifetime Pension, you get payments for the rest of your life.

• Spouse protection: You can elect to pass on your super payments to your spouse when you die, so they'll have an income for life.

• Retirement bonus: If you're eligible and you open a Lifetime Pension with money from your QSuper Accumulation or Transition to Retirement account, you'll get a bonus.

Not sure which options are right for you?

Consider getting financial advice first. If you're an ART member, you can get financial advice about your account with us over the phone. The cost is included as part of your membership.²

Advice options

---

Other tips for saving in retirement

Wondering how to make your money last in retirement beyond using your super as income? Here are some strategies.

• Get the downsizer contribution

  A downsizer contribution is a one-off contribution to your super. If you're 55 or older, it lets you add up to $300,000 from the sale of your family home to your super tax-free. If your spouse is also 55 or older, you can add up to $600,000 total to super between the two of you.

• Reinvest income payments

  If you're finding that you can manage to put some money away, you can help it grow by keeping it invested. If you're under 75, you may be able to add that money back into your Accumulation account. Other common ways of investing money in Australia include buying shares or property, or by investing money through a managed fund.

• Use government entitlements and concessions

  On top of the Age Pension, the Australian government offers retirees a range of concession cards and healthcare benefits. Take advantage of these where you can to lower costs.