Noel Whittaker is the author of Wills, Death & Taxes Made Simple and numerous other books on personal finance. Email: [email protected]​

For over a decade, governments have struggled to build an effective retirement income system. Retirees have two main choices: draw a pension from super, exposing themselves to market volatility, or opt for a lifetime annuity, which sacrifices flexibility.

Governments want retirees to spend rather than hoard savings, keeping money circulating in the economy. Overcoming ingrained habits and the fear of outliving savings is key. The challenge is balancing security with enjoying retirement.

One way to provide greater certainty is by converting part of your super into a reliable income stream. Traditionally called an annuity, a lump sum provides a guaranteed income for life.

Early annuities were unpopular due to inflexibility. If someone died early, their remaining capital vanished, leaving nothing for heirs. Inflation was another issue: retirees could choose level payments for life or indexed payments, but indexed payments took years to catch up.

The challenge is balancing security with enjoying retirement. Image Credit: Shutterstock

With government encouragement, annuities have evolved into more flexible lifetime income streams. These products offer various options, though they can be complex. Providers include Challenger, Australian Retirement Trust, Generation Life, and AMP, each with unique features.

Retirees must decide: fixed-term or lifetime annuity? Joint names for couples? Indexed or fixed payments? A guaranteed period for estate refunds? Centrelink concessions? Market-linked exposure for growth?

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[IAN3005]

Superannuation is the biggest rort since Adam..... scavangers along the way.....

 

[Towing]

Superannuation is the biggest rort since Adam..... scavangers along the way.....

Before employers started putting funds into the superannuation It was all taken out of the employee's salary after tax has been paid on the gross wages. What do you do? -" blow" the money up, invest in another way and pay full tax on the income from it, or buy an extra house and rent it out?

 

[IAN3005]

Before employers started putting funds into the superannuation It was all taken out of the employee's salary after tax has been paid on the gross wages. What do you do? -" blow" the money up, invest in another way and pay full tax on the income from it, or buy an extra house and rent it out?

There are ways and means of using the system...... Buy a house in Australia, what a joke, wouldn't touch a house in Australia, shoddy non-compliant workmanship in my eyes.

 

[Towing]

I have to agree with you about shoddy workmanship. People building houses now can't just get a house key from the builder and check what has been done because of OH&S regulations. You have to go while they are actually working there. Building Standards were bad enough in the early 1980s. One builder couldn't even put the power points next to a bed in the right place after being given the exact measurement of the bed and the exact position it was going to be put. They would have been behind the bed (ensemble type) that went almost on the floor. The other issue with the house was the laundry floor was sloped the wrong way. Even when rain was only gentle if any water went onto the door or step it ran towards the living area or through it if you weren't home at all. Imagine if they had gone away for the weekend. Lucky the area nearby didn't have carpet. They were just the minor faults

 

[IAN3005]

I have to agree with you about shoddy workmanship. People building houses now can't just get a house key from the builder and check what has been done because of OH&S regulations. You have to go while they are actually working there. Building Standards were bad enough in the early 1980s. One builder couldn't even put the power points next to a bed in the right place after being given the exact measurement of the bed and the exact position it was going to be put. They would have been behind the bed (ensemble type) that went almost on the floor. The other issue with the house was the laundry floor was sloped the wrong way. Even when rain was only gentle if any water went onto the door or step it ran towards the living area or through it if you weren't home at all. Imagine if they had gone away for the weekend. Lucky the area nearby didn't have carpet. They were just the minor faults

That's just to name afew the we can see..... imagine what is hidden.....