retirement can be a piece of cake
With Australians living longer than ever before, our retirement savings will need to stretch further. One strategy to help us build a comfortable retirement is income layering.
how does income layering work?
Think of it like making a layer cake, where each layer provides a different source of income.
This can ensure you have a steady flow of money coming in while reducing your reliance on any one source of income,
meaning you can enjoy your retirement with peace of mind.
what does income layering look like?
A simple income layering strategy might work like this:
Base layer: This is your guaranteed income, such as the Age Pension (check if you’re eligible) and any other government benefits.
Second layer: This includes income from your superannuation, which you’ve built up over your working life.
Third layer: This might include other sources of income, like investments, part-time work or selling assets.
Here's an example
Imagine you’re retired and need $50,000 a year to live comfortably. Your income layering strategy might look like this:
Base layer: Age Pension ($20,000 per year)
Second layer: Superannuation income ($15,000 per year)
Third layer: Investment income ($5,000 per year) and part-time work ($10,000 per year)
curious about income layering?
Want to know how income layering could work for you? Chat to a HESTA retirement expert today.
Our team is available to meet in person, over the phone or online.
get help applying for the age pension
*Retirement Essentials Pty Ltd ABN 35 615 383 232. Retirement Essentials are Australian retirement specialists with expertise in assisting people who are eligible to receive the Age Pension.
Any cost for services provided by Retirement Essentials will be paid by you directly and cannot be deducted from your HESTA account. This cost will be agreed with you prior to your direct payment of the fee. HESTA does not receive any commissions for the services.