Maximising savings up to
Patricia, 60 years
Patricia is a healthy 60-year old, who is single. Although she’s reached a stage where she would like to have more leisure time, she enjoys her job and isn’t ready to give up working completely. She’s made an arrangement with her employer to work part-time and enjoy the best of both worlds for now.
She has concerns about the impact volatile sharemarkets may have on her super balance. However, she’s keen to ensure her balance will grow enough to provide a comfortable level of income in retirement.
I need to preserve my super balance and draw an income to supplement part-time earnings.
Patricia is looking for a solution that can secure a supplementary income to top-up her part-time earnings now, without risking the super balance she’ll need to generate her income when she fully retires.
Protect current and future income with sharemarket protection
Recognising that Patricia is close to retirement and will need to draw income from her super, her adviser recommends rolling over a portion of her super into Allianz Retire+ Future Safe. Patricia can maintain her exposure to the sharemarket as a core part of her investment strategy in the lead-up to retirement, and still have peace of mind that she can limit her market losses. She can manage her exposure to sequencing risk at a time when her retirement savings are most vulnerable.
She can access at least 5% of her account balance at commencement each year to supplement her part time salary.
Investing in Future Safe will also support Patricia’s transition to retirement strategy by allowing her to access some of her super as a regular income stream.
6 key steps
Patricia works with her adviser through 6 key steps to:
Step 1 & 2: Understand her retirement goals and choose an Investment Interval
Patricia identifies her retirement objective with her adviser, which is to supplement her income with the ability to access sharemarket returns with a lower level of volatility. She prefers the higher Caps of the 10 Year Investment Interval and determines how much she can comfortably invest for the 10 year Investment Interval.
Step 3: Choose a protection option
Patricia chooses the -10% Floor option, as she is confident she can tolerate some market losses until she fully retires.
Step 4: Choose her investments
Patricia chooses to split her investment between the S&P/ASX200 Total Return Index and the MSCI World Net Index in Australian Dollars Index.
Step 5: Choose her withdrawal amount and frequency
As Patricia is over 60 and switching to a part-time income, she’ll be making withdrawals at the required minimum rate from her Future Safe account each year.
Step 6: Check in each year to review her strategy
Patricia reviews her protection, investment and withdrawal options with her adviser each year and makes and necessary changes.
For a detailed view of Patricia's investment journey, please download the full version
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