She’s 55 and plans to retire when she’s 67. Sarah doesn’t think her super balance is high enough and worries about paying for the simple things once she retires.
Based on Sarah’s super balance alone, her estimated income would be just $7,621 each year. However, if Sarah is eligible for the Age Pension her retirement income increases to $31,604 each year. This was more than she thought she’d receive given her low balance. Knowing that she can use the Age Pension to top up her super Sarah feels more comfortable she’ll be able to afford basic necessities when she retires.