Many Australian pensioners or even those pensioners-to-be are not aware of the main characteristics of each type. These payments coming from either the Australian government or from those contributions that your employer made during your work life will allow you to make the most of your retirement. The rising cost of living and the need to take money from savings is making retirees and people under 65 think about their future. If you have not thought about this yet, it is time to do so.
Firstly, you can access Super if you have reached preservation age and have retired. You can also get it once you meet one of the conditions of release. On the other hand, you can receive the Government Age Pension when you are 66 and 6 months old and taking into account that you are eligible. The payment for Super that you get, is the money from your savings during your work life. They hold it in your super fund. It is the government the one that pays Age Pensions.
The good thing about Super is that you can say when you would like to get it. It is a relief for many since you never know what lies in store. Besides, you can also choose how much. This makes a big difference because you might need extra money for unexpected events. Whereas the Australian government sets the amount of money that you get for your Age Pension. They take into consideration assets, income, residency status, and eligibility tests. Therefore, there are many different amounts that Australian pensioners might be entitled to.
Can you receive any gains from your Super or your Age Pension?
Another relevant difference is that you can invest your Super money in your fund. In this way, you can make more money. However, depending on your investment option, your investment returns might not be guaranteed. Another advantage of this system is that you can get a lump sum or transfer regularly some money to your bank account. As you can see, there are plenty of choices. For Age pension, the bank will send your payments and that is it.
It is in the previous part dealing with the Super choices that you might need some financial guidance. It is essential to ask for help when it comes to planning our future. We know that Australian dollars as well as other currencies are affected by inflation. Every little bit helps, and in the long term even more. Making the most of your savings and Super during your retirement should be a number one priority. Some of you might not be good at saving money and tend to overspend, do not be reluctant to ask for help.
The last thing to tell them apart is that Super is a retirement income source whereas the Age Pension is a retirement income support. Those two words are key, the first one is a source and the second one is a support. The latter one is like a safety net for those pensioners who are in need of additional money to make ends meet or just to get by decently.