You’ve spent decades building your super. Now what?

For most of your working life, the goal has been simple: keep contributing to your super and give it time to grow. But as retirement gets closer, the question changes. How do you turn those savings into retirement income – and help your money last?

There’s no single answer that suits everyone. Your plans, spending needs and other sources of income will all shape what comes next. But understanding your options can help you make the move from saving for retirement to living in retirement with greater confidence.

Start with the retirement you want

Before deciding what to do with your super, think about what you want retirement to look like. Your everyday expenses matter, but so do the things that make life enjoyable – whether that’s travel, hobbies, helping family or simply having more freedom over your time.

A simple budget can help you estimate how much income you may need. It’s also worth considering how your spending could change over time, including possible health and care costs later in retirement.

Understand your income options

Once you’re eligible to access your super, you have several choices. You may be able to take some or all of it as a lump sum or leave it in a standard accumulation account.

One option is to move it into an account-based pension. You can get an account-based pension from a super fund, typically the same one that looked after your super while you were working.

After transferring some or all of your super into an account-based pension, you can receive regular payments into your bank account – you can typically choose payments every fortnight, month, quarter, six months or year. You can also take lump sums for larger or unexpected expenses.

There are two key benefits with an account-based pension.

First, your money stays invested and can continue growing over time – even as you’re drawing down on it.

Second, there are tax benefits:

• All investment earnings are tax-free.
• The regular payments you receive are also tax-free (as well as any lump sum payments you make).

So more of your money remains available to support your retirement.

With an account-based pension, the income isn’t guaranteed for life. So it’s still important to carefully plan how much you withdraw, how your money is invested and the cash you need for expenses so your savings have the best chance of lasting.

Plan for your money to last

Retirement can last for decades, so it’s important to find a balance between enjoying your savings now and keeping enough for later. How long your account balance lasts will depend on factors such as your starting balance, investment returns, fees and how much you withdraw.

Keeping some money invested may help it continue to grow, but investment values can rise and fall. Choosing an investment mix that reflects your goals, time frame and comfort with market movements can help you manage that uncertainty.

Could the Age Pension form part of your income?

Your super may be only one part of your retirement income.

From age 67, you may also qualify for Age Pension payments. Eligibility depends on requirements including an income test and an assets test. Services Australia is a good place to find out more information about the Age Pension.

Your next chapter

Building your super took time. Turning it into retirement income deserves the same care. By understanding your options and making a plan that reflects the life you want, you can take the next step with more clarity and confidence.

By: Vanguard | 28 October 2026 | vanguard.com.au