Often the most effective way to fund retirement is by the commencement of Account Based Pensions from superannuation savings. For most retirees, retirement income streams from superannuation are tax exempt, and the earnings of the assets supporting the pension are tax free to the superannuation fund.
To enjoy a tax free retirement, not all investments need to be held within the superannuation environment. On occasion, it can be beneficial to hold investments personally, particularly from an estate planning perspective. The planning process will identify when this is appropriate, and to what extent assets should be held out of the superannuation environment.
For many individuals, superannuation income streams are used to supplement Centrelink entitlements to meet their retirement income needs.