On the pension

I recently moved most of my superannuation into an account-based pension, a personal retirement income account within my superannuation fund. I receive regular income payments while my balance remains invested, allowing me to access some of my superannuation while continuing to work. Payments will continue until the account is empty. How long they last depends on several factors, including my starting balance, chosen investment strategy, investment performance, and withdrawal amount. Any lump-sum withdrawals will also affect the duration of the payments.

The good thing is that I am still working and can continue contributing to superannuation. However, the investment earnings I can add to my pension account are usually tax-exempt. Since I am over 60, any pension or lump-sum benefits I receive are also tax-free. When choosing the investment strategy and payment levels for my account-based pension, I need to consider how long I want my retirement savings to last. For this reason, I am not ready to retire yet and plan to keep working for at least five more years to ensure I have enough savings for retirement. But now I can say I am on a pension; I think that officially makes me old.