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Maximising retirement outcomes for our members

As a proud profit-to-members fund, we are committed to improving member outcomes in retirement.

The Retirement Income Covenant ('the Covenant') has built on the important work we do every day to help our members achieve their best possible retirement.

The Covenant requires super fund trustees to develop a Retirement Income Strategy for all members who are approaching retirement or who have retired.

A summary of the retirement income strategy is available for download.

This summary may be a useful guide for our members to help them understand what retirement strategies may best support them in retirement. 

While consideration has been given to the different needs of our members as they approach retirement or at retirement, we recognise that individual member circumstances may vary. We recommend members talk to a qualified financial planner for advice tailored to their individual circumstances.

Our strategies


As your super fund, we are required to formulate a retirement income strategy for classes or sub-classes of members who are retired or approaching retirement. A summary of those strategies can be seen below.

These strategies are designed for general use only and do not consider personal circumstances such as risk tolerance, health, financial dependents, lifestyle expectations etc.  

We recommend members seek personal tailored financial advice when implementing their own retirement income strategy.

Please refer to our guide for the full details of these strategies including the assumptions used when constructing and applying to the period of retirement.

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The following strategies are designed for members who are at the point of retirement and have met a condition of release for superannuation. ’At the point of retirement’ is defined as being within the first two years of retiring.

Below is a summary of the strategies contained within our guide.

Sub-class
Objective
Current super balance
Aim
Income target
Product(s)
Investment strategy
Retirement Modest
To achieve security and longevity of income and have flexible access to capital
$20,000 - $270,000 
Meet income target by drawing down from superannuation to top up government age pension, while retaining full access to cover unforeseen expenses (e.g. health)
$30,582 
Equip Super Retirement Income account
MyPension
Retirement Comfortable
To achieve longevity of income and have flexible access to capital
$270,000 - $900,000
Meet income target by drawing down from superannuation to top up government age pension, while retaining full access to cover unforeseen expenses (e.g. maintain desired lifestyle, health)
$48,266
Equip Super Retirement Income account 
MyPension
Retirement Choices 
To achieve longevity of income, have flexible access to capital and minimise tax
$900,000 -  $1,700,000
Meet income target by drawing down from superannuation, while retaining full access for ad-hoc lump sum requirements (e.g. maintain desired lifestyle, health, inheritance)
$48,266 (or minimum drawdown rate, whichever is the highest)
Equip Super Retirement Income account
MyPension 
Retirement Freedom
To have flexible access to capital, sustainability of capital and minimise tax
Greater than $1,700,000
Meet income target by drawing down from superannuation, while retaining full access for ad-hoc lump sum requirements (e.g. maintain desired lifestyle, health, inheritance)
$48,266 (or minimum drawdown rate, whichever is the highest)
  • Equip Retirement Income account (up to transfer balance cap of $1.9m)
  • Equip MyFuture (for remaining balance in excess of $1.9m)
  • MyPension (in Equip Super Retirement Income)
  • MySuper (in Equip MyFuture)

 

When it comes to implementing a retirement income strategy Equip Super believes the following can assist members to optimise their retirement outcomes: 

  • Seeking financial advice to determine and implement personal financial strategies;
  • Increasing financial knowledge and literacy through education; and
  • Conducting self-assessments, goal setting and tracking progress.

We aid members with these items through the provision of benefits and facilities, such as an online member portal, mobile app, financial planning services, seminars and workplace education sessions, educational content, online tools and calculators, regular communications, inbound and outbound call centre services.

You can learn more via our Explore and Learn pages.

The following strategies are designed for members aged 50 and older who do  not consider themselves to be retired.

Below is a summary of the strategies contained within our guide.

Sub-class
Objective
Current super balance
Aim
Options available
Product(s)
Investment strategy
Pre-Retirement Modest
To protect super balance and maximise contributions to attain largest balance possible
Less than $500,000
Attain highest superannuation balance possible through maximising contribution caps
  • Salary sacrifice
  • Additional concessional contributions to maximise cap, including carry forward rule
  • Utilise government co-contribution
  • Commence a transition to retirement income account and implement transition to retirement strategy (TTR)
  • Equip MyFuture
  • Equip Super Corporate (eligibility criteria applies)
  • Equip Super Defined Benefit with voluntary accumulation account (eligibility criteria applies)
  • Equip Transition to Retirement Income
  • MySuper
  • Balanced Growth (for members of Equip Defined Benefit)
Pre-Retirement Comfortable

To maximise tax efficiency and contributions to attain largest balance possible

 

 

Greater than $500,000
Attain highest superannuation balance possible through maximising contribution caps
  • Salary sacrifice
  • Additional concessional contribution to maximise contribution caps
  • Complete a re-contribution strategy within contribution caps
  • Commence a transition to retirement income account and implement transition to retirement strategy (TTR)
  • Equip MyFuture
  • Equip Super Corporate (eligibility criteria applies)
  • Equip Super Defined Benefit with voluntary accumulation account (eligibility criteria applies)
  • Equip Transition to Retirement Income
  • MySuper
  • Balanced Growth (for members of Equip Defined Benefit)

When it comes to implementing a retirement income strategy Equip Super believes the following can assist members to optimise their retirement outcomes:  

  • Seeking financial advice to determine and implement personal financial strategies;
  • Increasing financial knowledge and literacy through education; and 
  • Conducting self-assessments, goal setting and tracking progress.

We aid members with these items through the provision of benefits and facilities, such as an online member portal, mobile app, financial planning services, seminars and workplace education sessions, educational content, online tools and calculators, regular communications, inbound and outbound call centre services.

You can learn more via our Explore and Learn pages.
 

Determining your own retirement income strategy



As noted above, our retirement income strategies are designed for generic use and do not consider personal circumstances.

To determine your own retirement income strategy, you’ll need to consider some key items and make decisions about your retirement lifestyle.

When it comes to implementing a retirement income strategy Equip Super believes the following can assist members to optimise their retirement outcomes:  

  • Seeking financial advice to determine and implement personal financial strategies;
  • Increasing financial knowledge and literacy through education; and 
  • Conducting self-assessments, goal setting and tracking progress.

Below are some considerations that may help you to determine your own retirement income strategy.

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With your working life behind you, income in retirement is about what you spend, not what you earn. 

Think about how much money you need to meet all the expenses that come with achieving your desired retirement lifestyle. We refer to this money as your income target.

Our easy to use Retirement Lifestyle calculator can help you determine what annual income you might need when you retire. And our more in-depth Retirement calculator allows you to see what you might be retiring with, how long it can last, and what that translates to in annual income.

Our retirement income strategies assume an income target equal to the ASFA Comfortable Standard for singles.

While no one can predict exactly how long their retirement will last, there are resources available that you can use for guidance.

Depending on how long you live, this may mean that your retirement could be longer than your working life. 

You’ll need to factor an expected period of retirement into your retirement plan to determine whether your income target is achievable or whether you should reassess your desired lifestyle.  

The Australian Bureau of Statistics and the Australian Government Actuary publish life expectancy tables which you may find helpful when considering your own period of retirement. 

When developing our Retirement Income Strategy, we’ve utilised a period of retirement of 22 years, based on the Australian Bureau of Statistics average life expectancy of a female aged 65 today. Your own period of retirement could be longer or shorter than this.

Our definition of maximising your retirement income is meeting the income target (the amount needed to maintain your lifestyle) for as long as is sustainable within retirement. 

Maximising your income is not about drawing the largest annual income possible from your savings but instead ensuring that you can draw an income that meets your needs for the longest amount of time.

What this means is that while you may have the ability to draw a retirement income that exceeds your income target, if you’re not going to use it then any money over and above the target can be considered as surplus to your needs. It is this surplus that should be used to extend the longevity of your income, helping to ensure that you don’t outlive your retirement savings.

If you don’t have the ability to meet your income target, you’ll need to assess where your retirement income might come from and whether there can be adjustments made to the target itself that will ensure you can draw an income that will sustain your needs for the period of retirement.

Our Retirement calculator allows you to see what you might be retiring with, how long it can last, and what that translates to in annual income. It allows you to assess different levels of income and include other sources such as the Age Pension.

There are four key risks associated with funding your retirement lifestyle that you need to consider and balance when making decisions that will maximise your retirement income.

  • Investment risk – the chance that the actual value of, or return from, an investment may be less than its expected value or return.  
  • Inflation risk – the risk that money held today will retain its equivalent value tomorrow.
  • Longevity risk – the risk that you will outlive your retirement savings or the ability to receive a retirement income. 
  • Sequencing risk – the ability to enter or exit the market at a time appropriate to you.

You should understand your tolerance to these risks and consider choosing investments that align with it and the affect that will have on the ability to meet your chosen income target.  

Equip Super offers a selection of investments to suit your needs including our set-and-forget MyPension investment strategy. 

Our retirement income strategies are designed around the use of our Retirement Income account and the MyPension investment strategy.  

By now you may have set your income target, considered your retirement period and determined how to balance the risks to maximise your income. 

During that exercise you would have considered how much money you’ll need regularly but have you considered how much you may need on an ad-hoc basis to cover for both planned and unplanned expenses? 

Generally having access to funds will be a trade-off between:

  • Receiving guaranteed income payments 
  • An opportunity for higher investment returns
  • Limiting your investment choice

Think about whether your income target includes an allocation for large, unexpected expenses or whether you’d like the ability to dip into your savings as needed or at a planned time. Understanding this can help you to choose a retirement product (or combination of products) that will best meet your needs. 

You can learn more about accessing your super in retirement here and how your super can be used as an income stream here

Our retirement income strategy has taken a position that full access to superannuation savings is in the best interest of members when providing generic strategies. We use the Retirement Income account and the MyPension investment strategy in combination with the Age Pension to ensure access while balancing the risks.

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Getting a little support and guidance from the experts can make a big difference when it comes to helping you make the move to retirement in the way you want to. And our team is here to help.

Additional reading

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Planning and advice |
How much super do you need to retire?
A combination of your super, the Age Pension, and other investments can work together to provide you with a retirement income that maximises your government entitlements and meets your needs. Read more
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Planning and advice |
Can I work part-time in retirement?
Retirement is changing. People are living longer, they’re remaining active, and they’re looking at ways to maintain their lifestyle. Increasingly, that means taking up some part-time work.  Read more
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Planning and advice |
Retirement income explained
Building up a healthy superannuation balance is important, but how you access and invest your money in retirement will determine how long it lasts.  Read more

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