Retiring doesn’t need to be a daunting experience. With the right tools and information, you can transition to retirement with confidence. Knowing how to manage your finances is important; one option that could be right for you is an account based pension.
During your working life, you would have probably received a regular salary from an employer or regular payments from your own business. In retirement that routine may disappear.
An account based pension could help you keep a routine in place. Rather than taking your super as lump sum, an account based pension lets you set up regular payments over the course of your retirement. This money is paid from your super savings, straight into your bank account for easy access. These regular payments give you control and can help you manage your finances.
Take control of your super in retirement
Here are 3 ways that an account based pension could help you feel more in control of your retirement:
1. You’re in control of your income
When you open an account based pension, you choose how often and how much your payments will be. If your job paid you fortnightly, you could opt for the same. If you prefer a monthly income, you could select monthly. You’re in control - the only caveat is that you must withdraw a minimum amount at least once a year, depending on your age.
Account based pension payment minimums
|Your age||Minimum % of your balance you’ll need to receive each year|
|65 to 74||5%|
|75 to 79||6%|
|80 to 84||7%|
|85 to 89||9%|
|90 to 94||11%|
|95 and over||14%|
Beyond that, you’re free to set up how much you get paid so you can live the retirement you’re after.
AustralianSuper’s account based pension - Choice Income - gives you the option to be paid every 2 weeks, monthly, quarterly, twice a year or annually.
2. You have flexibility with your super savings
Regular payments offer stability, but Choice Income also offers flexibility. Having flexibility with your finances can give you the confidence to enjoy your retirement, without worrying that you’re going over budget. You can access extra money from your Choice Income account when you need it. For example, you may decide to buy a new car, carry out some home renovations, or tick off some bucket list travel plans. If you’re 60 or over, both your regular income payments and additional withdrawals are tax free.
Choice Income offers a range of features designed to help you make the most of your super. Smart Default provides a specially designed investment option, and Balance Booster provides an option for moving from a super or TTR Income account to a Choice Income account.
3. You continue to benefit from any investment returns
Many people aren’t aware that there are income options to explore in retirement that offer alternatives to taking super as a lump sum when you retire.
When you open an account-based pension your super balance stays invested with your super fund, giving your savings the chance to keep growing and last a little longer, thanks to compound investment returnsCOMPARE AUSTRALIANSUPER’S INVESTMENT RETURNS
AustralianSuper members can speak to a registered financial adviser for guidance. An adviser can help you decide on your payment amounts and frequency so that you’re making the most of your super savings.EXPLORE ADVICE OPTIONS
Am I eligible for Choice Income?
You’ll need a minimum balance of $50,000 in your super account to rollover to your new Choice Income account. And you can’t add money to a Choice Income account once you’ve opened it, so any other money you’d like to have in your Choice Income account needs to be added to your super first. You will also have to meet the conditions of release. For full information refer the Choice Income PDS.
Staying on top of your retirement income
The best part about knowing how much you’ll be paid and how often is that you’ll be free from worrying about where your money will come from after you retire. And you can change how your payments are set up at any time.
And that means you’ll have more time to celebrate special occasions, pursue the hobbies and activities you love, and enjoy the retirement lifestyle you’ve worked so hard to achieve.LEARN MORE ABOUT OUR ACCOUNT BASED PENSION
This information is general financial advice which doesn’t take into account your personal objectives, situation or needs. Before making a decision about AustralianSuper, you should think about your financial requirements and refer to the relevant Product Disclosure Statement. AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898.
Investment returns are not guaranteed. Past performance is not a reliable indicator of future returns.