When you retire, you can use your super savings to provide an income.
To do this, in a tax effective environment, you can start a pension using your super (called an 'allocated pension'). You can choose the amount of income you want and when you get paid.
How a Pension account works
- You open an account. To be eligible you will need a minimum account balance of $10,000 (for AustralianSuper’s Pension account) and have reached the age of 55.
- You transfer money from your super account/s to your new pension account.
- You choose your pension payment amount (within limits, see point 6), and how often you want to receive these payments – weekly, fortnightly etc.
- Your pension payments are paid into your bank account and you can manage your account online.
- You can withdraw lump sum amounts when you want to (if you are retired).
- There is an age based minimum amount that you must withdraw every year, which is set by the Government.
Age on 1 July
|
Minimum annual income payment
|
| 55–64 |
4% |
| 65–74 |
5% |
| 75–79 |
6% |
| 80–84 |
7% |
| 85–89 |
9% |
| 90–94 |
11% |
| 95 and over |
14% |
* This minimum amount is recalculated every year based on your account balance. A maximum limit of 10% of your account balance applies in the Transition to Retirement option (don’t worry we will write you a letter to remind you).
Why choose a pension?
- You receive a regular income paid into your bank account.
- The income paid from your pension is treated favourably by Centrelink when assessing your Age Pension eligibility.
- Your money isn’t locked away for life. You can always make lump sum withdrawals for those one-off expenses that come up.
- You don’t need a large amount of super to make the most of an AustralianSuper Pension. In fact, when combined with the Government Age Pension, a $50,000 super balance can make a difference to your weekly income in retirement.
- You pay no tax on the investment earnings. And if you’re 60 or over, your pension payments and any lump-sums you withdraw are tax-free.