Income Layering: A worry-free retirement with more income certainty

How income-layering works

Income-layering in retirement is designed to give you more certainty and potentially more Age Pension

Whether it’s investment markets or the cost of living that have you worried, or you’re simply concerned about outliving your retirement savings, an income-layering approach might be just what you need.

How does it work? 

This approach involves investing your super balance between two TelstraSuper retirement products: Our account-based pension and our lifetime pension.

An account-based pension gives you a regular income from your super balance and you can access your money whenever you need it. However, this money can run out.

That’s where a lifetime pension comes in, offering a guaranteed^ income for life.

Investing in a lifetime pension with some of your super may also result in you getting more Government Age Pension, or becoming eligible for Age Pension payments for the first time.  

Income-layering illustrated

Benefits of income-layering

After you turn 60, drawing an income from different sources means you can take advantage of the benefits of each.

Some of the potential benefits of income-layering:

 

TelstraSuper’s RetireAccess retirement income stream gives you flexibility with regular, tax-free income and the option to withdraw extra if needed. 

 

Combining the RetireAccess retirement income stream with a RetireAccess Lifetime Pension gives you more confidence to spend and enjoy those early, active years in retirement, knowing you have locked in a guaranteed^ income for the rest of your life.

 

Potentially increase the amount of Age Pension you are entitled to, or even help you get the Age Pension if you were not already eligible. Explore our case study. 

 

Depending on your circumstances, income-layering can help your super last longer. Read our latest article. 

 

Explore how income layering could work for you

To explore how income-layering could work for you, try our Lifetime Income Calculator which can illustrate three sources of income in retirement: a Government Age Pension, an account-based pension and a lifetime pension. It can also provide you with a guide to the longevity of your retirement savings using information you provide about yourself and your spouse (if applicable) and the income you think you will need to support the lifestyle you want in retirement.

Try our Lifetime Income Calculator

 

^The benefits provided by RetireAccess Lifetime Pension are supported by a life insurance policy issued to Telstra Super Pty Ltd, the trustee of TelstraSuper (“Trustee”) by Challenger Life Company Limited (ABN 44 072 486 938) (AFSL 234670) (“Challenger”). The Trustee, as issuer of the RetireAccess Lifetime Pension product, does not provide any guarantee whatsoever in respect of the product. The guarantee is provided by Challenger Life under the life policy issued to the Trustee. The Trustee relies wholly on Challenger Life to pay your pension and will not pay your pension under a RetireAccess Lifetime Pension if Challenger Life is unable to. 

This summary of the features of RetireAccess Income stream and RetireAccess Lifetime Pension contains general advice which has been prepared without taking into account your objectives, financial situation or needs.

Any general advice has been prepared without taking into account your objectives, financial situation or needs. Before you act on any general advice, you should consider whether it is appropriate to your individual circumstances. Before making any decision, you should obtain and read the relevant Product Disclosure Statement and Target Market Determination or call us on 1300 033 166 for copies of these documents. You may wish to consult an adviser before you make any decisions relating to your financial affairs. To speak with an Adviser from TelstraSuper Financial Planning call 1300 033 166.