Having enough income throughout your retirement years is essential to enjoying retirement. While some people will be eligible for the Age Pension, you don't want to be relying solely on that. For most people the Age Pension will only provide a very basic lifestyle, and might not even cover essential expenditure.

Retirement income streams are a popular investment choice for retirees as a way of producing regular income payments throughout retirement. Types of retirement income streams include allocated pensions, fixed term pensions, life pensions and annuities. It's also possible to transition to retirement, by continuing to work and receiving a transition to retirement income stream.

Gaining a good knowledge of retirement income streams involves understanding:

• what they are;
• how they work;
• what types there are;
• who provides them;
• what the risks are;
• how they are taxed; and
• how they are counted for the social security means tests.

A financial adviser can help you decide what retirement income stream suits your circumstances. They can also ensure you are planning your position to maximise any Centrelink benefits.

Centrelink

Once you've reached retirement age, the Age Pension ensures eligible people have an adequate income in retirement. Other benefits, which you may be eligible for include:

• The Commonwealth Seniors Health Card (CSHC), which helps senior Australians with the cost of prescription medicines and other health services it you are of aged pension age but do not qualify for the Age Pension.
• The Pensioner Concession Card is available to Age Pensioners and gives discounts on pharmaceuticals and a range of other benefits.
• The Pension Loans Scheme which can help eligible Australians if they cannot meet one of the Centrelink means tests for Age Pension eligibility but have capital tied up in assets and need more income to live on.
• The Work Bonus is available to Age Pensioners who keep doing some paid employment. It provides an exemption for the first $250 per fortnight of employment income from the Centrelink income test
• Seniors Supplement assists eligible CSHC holders to pay regular bills such as energy, rates, phone and motor vehicle registration fees.

A financial adviser can help you plan your finances to maximise any benefits.