Overview
The "Retire" event allows you to select;
Who's retiring
Which jobs they're finishing working on
Use of Superannuation
We'll also tell you about the value of other assets you'll hold at retirement.
The event will then:
End any jobs that are added in the "Jobs to end" from the start of the year that the event is added to.
Create a tax free income stream from the Superannuation asset either;
Once preservation age is hit (e.g. if you add this event to when you're 55, it'll start an income stream at
The current year if you're already over preservation age
If you're wondering how much you need in retirement... there's obviously no hard or fast rules... some people suggest you'll spend ~70% of your pre retirement income, it might also be worth looking at the ASFA retirement standard which gives a detailed breakdown of what different retirement incomes will support you with.
What do each of the options means for "Use of Superannuation"
Target Age
This is the default use of superannuation, in this we'll model a consistent inflation adjusted withdrawal which will completely drawdown the superannuation account by a target age.
The technical term for this is an "Amortisation based withdrawal". ASIC - the regulator for financial services requries us to use this (including 92 as the target age at which the super is completely drawn down).
If you look at the chart on the right you'll notice that the income drawn from the superannuation is a consistent annual amount as this chart is currently showing the income in 'today's dollars' (Configurable by clicking on the Cog).
Annual Amount
The annual amount selection allows you to enter a set 'yearly amount' which you'll draw from superannuation in retirement (until your superannuation asset is depleted). We'll adjust this for inflation.
We default this field to $73,031 which was the ASFA luxury retirement standard amount for a couple during 2024. (this has now adjusted to $73,077 in the Dec quarter of 2024)
Fixed Rate
The fixed rate selection allows you to enter a set 'fixed rate' e.g. 4% of the balance in the first year of retirement as an amount to draw down annually. Currently with the deterministic model we have in Canwi + the inability to adjust the assumed growth rate of the superannuation in retirement this option may make less sense - but as we add historical back testing & montecarlo simulations, this will support testing a safe withdrawal rate.
The retire event is planned to be rebuilt as an event which adds / orchestrates multiple other events;
Stop Job
Drawdown Superannuation
Change Superannuation return rate
+ Draw down of any other stocks / assets that you nominate
Limitations
The event does not currently cater for users multiple superannuation accounts - we'll only draw down your first superannuation account.
The event does not currently support initiating the Aged Pension.
The event does not currently support changing the return rate of the superannuation asset in retirement (you'll most likely start to reduce your risk tolerance & hence assumed returns over the course of your retirement)