3 April 2025
Australians are changing the way they live, with more and more people renting their homes rather than owning them. The flow-on effect is a change in thinking about preparing for the future and how to use your super in retirement.
Ways to manage your super if you’re renting
It’s a home truth that your housing situation will have a big influence on your retirement. That’s because whether you’re renting, still paying off your mortgage or fully own your home, your housing expenses often make up a significant portion of your living costs.
Renting in retirement is on the rise
Whatever the social and economic reasons, the trend of Australians renting is set to continue.
The decline in home ownership in Australia
Getting retirement ready when renting
Approaching retirement takes a mindset shift. It can help to ask yourself these 3 questions:
- What lifestyle do you want to lead?
- How will you plan for it?
- How will you manage your super balance in retirement?
How much income you’ll need for the lifestyle you want
The more you can understand your retirement needs and the lifestyle you’d like to have, the better you can plan for the future. Knowing things like how you want to spend your time, your financial situation and whether you want to volunteer or keep working a little gives you a roadmap to retirement to follow.
You may want to research whether you’re eligible now or may be eligible in the future for Government assistance. Renters who are aged 67 or older and receive a Centrelink payment like the Government Age Pension, may qualify for Rent Assistance and the Pensioner Concession Card.
AustralianSuper’s retirement income calculator helps you work out what costs you may have after you finish working, so you can estimate how long your superannuation may last.
USE THE RETIREMENT INCOME CALCULATORPlanning for your best retirement
Living the retirement you’ve worked hard for involves careful planning. And it’s not just your super and financial situation that counts. Planning for your wealth, work, lifestyle and health all help you prepare for the future.
AustralianSuper’s interactive Elements of Retirement guide helps you with each step of planning for retirement.
EXPLORE THE ELEMENTS OF RETIREMENTStaying invested to help your savings last longer
Throughout your working life your super contributions from you and your employer are invested to help it grow. In retirement, the same applies. Staying invested helps your super go the distance while you live the retirement you want.
When you’re renting, it’s a good idea to think about how you’ll pay for any rental rises or increases to your living expenses caused by inflation. Staying invested in retirement can help address these needs.
Plus, with a regular income and the option to take out more for unexpected expenses, an account-based pension like Choice Income can help you budget with more certainty.
AustralianSuper’s Balanced investment option has an objective to outperform CPI by more than 4 % pa and the median balanced fund2 over the medium to longer term. Learn more.
The benefits of an account-based pension
Growing your super in retirement may not be the first thing that comes to mind when people think about retirement. Tax-effective account-based pensions3, like AustralianSuper’s award-winning Choice Income account4, have 3 key benefits:
- keep your money invested for the chance to grow
- pay yourself a regular income1 just like a salary
- take extra amounts from your super when you need for unforeseen expenses.
You won’t pay tax on any earnings from your Choice Income investment. Plus, if you’re 60 or older, any withdrawals you make are also tax-free.
References:
- The government requires a minimum amount to be paid each financial year from an Account Based Pension.
- As determined by the SuperRatings Fund Crediting Rate Survey - SR50 Balanced (60-76) Index and SRP50 (60-76) Index.
- There is a lifetime limit on the maximum amount you can transfer into one or more tax-free retirement phase accounts, known as your transfer balance cap.
- AustralianSuper received the Canstar Outstanding Value Award – Account Based Pension in 2018-2024. Read the full methodology here. Awards and ratings are only one factor to be taken into account when choosing a super fund.
- Personal financial product advice is provided under the Australian Financial Services Licence held by a third party and not by AustralianSuper Pty Ltd. Some personal advice may attract a fee, which would be outlined before any work is completed and is subject to your agreement. With your approval, the fee for advice relating to your AustralianSuper account may be deducted from your AustralianSuper account subject to eligibility criteria.
This may include general financial advice which doesn’t take into account your personal objectives, financial situation or needs. Before making a decision consider if the information is right for you and read the relevant Product Disclosure Statement, available at australiansuper.com/PDS or by calling 1300 300 273. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the TMDs at australiansuper.com/TMD.
AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898.