Summary
Funding retirement with an account-based pension
There’s more than one way to fund your retirement. Maybe you’re eligible for the Government Age Pension, maybe you have savings and investments, or you could take your super as a lump sum.
Another option is an account-based pension, which lets you access your super as a regular income and keep your super invested to help it last longer. This means you don’t have to withdraw your super as a lump sum to access it. By transferring money from your super to an account-based pension like AustralianSuper’s Choice Income account, pay yourself income just like a salary, while your balance stays invested1. This gives you the potential for investment returns throughout your retirement.
What is Choice Income
Choice Income offers flexibility1 and control for funding your retirement. Watch the video to find out more.
What is Choice Income

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Enjoying your retirement means not having to worry about money. You've worked hard for many years building your super. Now it's time to make that super work for your retirement.
You may choose to take all your super out as a lump sum to pay off your home, invest elsewhere, spend on essentials, or put it in the bank.
Another option is to consider transferring all or some of your super into an account based pension with a super fund.
At AustralianSuper, we call our award-winning account based pension Choice Income^.
It allows you to keep your money invested and earning returns while you receive regular payments.
By putting your super into an account based pension like Choice Income, you can draw a regular income like a salary, keep your savings invested so they continue to work for you, and enjoy tax savings after you turn 60.
And you may be eligible for the Government Age Pension alongside your Choice Income payments.
You can choose from different investment options and change them easily.
You can also choose how much and when you want your payments, and withdraw additional money anytime for life's little surprises.
Once you've considered all your options and read the Choice Income product disclosure statement, it's easy to open a Choice Income account.
Simply fill in our online form or use the paper form at the back of the Choice Income product disclosure statement.
To learn more, visit australiansuper.com/ChoiceIncome, or call us at 1300 300 273.
^ AustralianSuper received the Canstar Outstanding Value Award – Account Based Pension in 2018-2024. Awards and ratings are only one factor to be taken into account when choosing a super fund.
How an account-based pension works
You’ve worked hard for your super. Your super can work for you. When you retire, you can receive a regular income from your super while keeping your super balance invested. It's easy with an account-based pension. You use money from your super account to open an account-based pension like our Choice Income account, and you can set it up to suit your financial needs.
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When you reach preservation age and retire, you can open a Choice Income account to access some of your super when you need it and leave the rest invested. To do this you need to transfer some or all of your super into a new Choice Income account1.
You can choose how much income you want to receive and how often, and which investment options you prefer. And your money isn’t locked away. You can withdraw extra money to pay for bills, holidays, or other big-ticket items whenever you need it.
Here’s how it works:
The benefits of Choice Income include:
- Flexible payments. Choose how much you want paid straight into your bank account and how often. You can also take out extra money from your Choice Income account anytime.
- Control how you invest your balance or leave investment decisions to our experts, and you could earn returns throughout your retirement.
- Save tax. You no longer pay tax on investment returns, and once you turn 60 you no longer pay tax on your income payments.
How Dale made the most of his super with Choice Income
AustralianSuper member Dale talks about how he gets a fortnightly wage from his Choice Income account.
How Dale made the most of his super with Choice Income
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My name's Dale Amy. I used to pull the road trains up from upper NT, Western Australia, across the Nullarbor and that.
You’ve got to have an understanding wife. When I started going away, I did miss Sandra for awhile and all your friends. Next you've got no friends when you're on the road. And you're all excited, I'll get home. I've got to get home to see your lovely wife and your family and happy. Sometimes it didn't happen that way.I thought, "I'll go to 70 so I’ll get some more money up." I didn't think about what's around the corner. When Sandra got ill, it changed everything. Our life just changed altogether. Sandra had cancer. I had a lot of thoughts going through me brain at the time.
Sandra laying there in bed, sick and that and I was working and trying to get home. And I thought, "No, it's not right. I'll retire." That's why I started to think about retirement.
And I thought to Sandra, I said ‘we're going to do it properly.’ That's when I ring AustralianSuper up and started planning things
Now I’m happy and relaxed. I’ve sort of settled in now I’m retired. Now got more time to think and control things. I love my fishing. I find that relaxing. If you catch something, it's a bonus. If you don't, you've enjoyed this fresh air getting out there.
You've got to plan ahead. You can't just go ‘bang and I’m going.’ Get out, enjoy life. And all the fresh air and get out and do your hobbies and that. Just get out there and do it.
It's Australian. It's super. And it's yours
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How an account-based pension could work with the Age Pension
When you think about your retirement and how you’re going to pay for it, super is probably the first thing that comes to mind. One way you might use your super is with an account-based pension.
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However, super isn’t the only way to fund your retirement. Around 63% of Australians over the age of 65 receive part or full Government Age Pension payments3. A Choice Income account, along with the Age Pension, can work together to support you in retirement.
If you open a Choice Income account, you could receive payments from that, supplemented by payments from the Age Pension, if you are eligible. Meanwhile, the balance of your super could continue to grow.
Understanding how super payments and the Age Pension can work together can help you feel more confident about your retirement.
Retirement income – Government Age Pension vs super
Super Government Age Pension Can access once you reach preservation age and meet a condition of release. Can apply at Age Pension age, if eligible. Money is from your savings over your working life, held in your super fund. Money is from the government. You choose how much you access and when1. Your payment amount is set by the government and based on a range of eligibility tests, including residence rules, income and assets. Over your retirement you can keep money invested in your fund so it could continue to gain investment returns. The investment returns will depend on the investment option you’ve selected and aren’t guaranteed.
You can transfer a specific amount to your bank account regularly and also a lump-sum amount as needed, while the balance of your super stays invested.
Money is paid into your bank account, where it may earn interest over time. Designed as retirement income source. Designed as retirement income support – a safety net for those with no super, or to support super savings.
Using your super as an income with an account-based pension
Your super balance will vary compared to someone else’s. How you choose to access and use your super will differ too.
An account-based pension is one way to fund your retirement with super. This product is a specially designed retirement account that lets you access your super as an income. AustralianSuper’s account-based pension is called Choice Income. It allows you to get a regular income from part of your super, while keeping the rest invested. You can set regular payments into your bank account that suit you1 (for example, fortnightly), and withdraw more if you need to, for things like holidays or larger bills.
For many Australians, moving all your super into a bank account can be overwhelming, as you’re left with a large sum of money to manage. Options such as an account-based pension is a popular choice for many retirees. It can help you to manage your super balance in retirement1 – which for many can be more than 25 years.
It could also help you save on tax and because of the tax-free earnings, performance may be superior to Super. That’s because once you turn 60, you generally no longer pay tax on income payments or investment returns from your account-based pension1.
If you choose to, having Choice Income plus other sources such as the Government Age Pension can help fund your lifestyle in retirement.
Why staying invested in retirement may be right for you
Investing successfully for retirement relies on a steady focus and not being distracted by the twists and turns inevitable on any long journey4.
Members who stay invested in growth assets and stick to their long-term plan can often end up in a better position than those who keep changing their investment options or choose only defensive assets4.
Read more
- How Choice Income works
- Super fund or bank account - what to choose in retirement
Understanding AustralianSuper's account based pension
How you could fund your retirement?
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Need more help?
Got a question about super or retirement? Head over to Help & Support for our frequently asked questions directory and more help options.
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Important Information
- The government has a lifetime limit on the amount of super you can transfer into any tax-free retirement income account(s) and sets a minimum amount that must be taken as an income each year from account based pensions such as Choice Income. To learn more, view the Choice Income Product Disclosure Statement australiansuper.com/pds.
- Retirement Income and Tax, Money Smart
- Australian Institute of Health and Welfare (2023) Income support for older Australians, Released September 2023.
- Market cycles and super - it’s all about the long term, AustralianSuper, November 2024.
- Understanding the risks of switching, AustralianSuper, February 2025.