Retirees opting for regular weekly income, over lump sum payments
Article by Roisin Kelly-Goldsmith
Retirees are increasingly accessing their superannuation funds through an income stream method in comparison to adopting lump sum payment habits, according to fresh ABS statistics.
In 2013 and 2014, nearly 1.2 million seniors received weekly payments of $502. ABS program manager Bjorn Jarvis, said the results have shown a statistical jump from one in five people aged 65 years and over using a super income stream to one in four in recent years.
When it came to lump sum withdrawal routines of retirees, Jarvis explained that in 2013 and 2014, among those who had taken out money in the previous two years, half amounted to less than $25k.
"Three quarters of people used the lump sum to invest in their home, make other investments, buy or pay off a vehicle, or to pay off outstanding debts. For the other one quarter, the most commonly cited reasons were for holidays, followed by general living and medical expenses," he said.
The ABS data also highlighted that the number of Australians with superannuation and average value of people’s accounts grew significantly in the ten years to 2013 and 2014.
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