Income management

Income management is important after you’ve finished work because you can’t earn money to grow your savings

Unless you are a member of a defined benefit super fund you will have to decide how to use your pool of super savings and other assets to provide an ongoing income. At this point in your life the main aim of your super switches from accumulating to generating income that you use to pay for your day-to-day expenses.

Income management considerations:

• Ensure you are not taking too much risk with your investments
• Prioritise income generation instead of growing your investments
• Understand the tax and Centrelink implications of your investment decisions

The reason you need to reduce risk is because if you suffer a big loss after you’ve retired you’ll not be able to earn income to rebuild your nest egg.

To find out more you should speak to your financial adviser. If you don’t have a financial adviser, we can help you find one.