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.
*Readers Digest Most Trusted Brands – Superannuation category winner for 10 years running 2013 – 2022, according to research conducted by independent research agency Catalyst Research. Awards and ratings are only one factor to be taken into account when choosing a super fund.
† Based on the AustralianSuper Balanced investment option compared to the SuperRatings Pension Fund Crediting Rate Survey — SRP50 Balanced (60–76) Index, to 30 June 2022. Investment returns are not guaranteed. Past performance is not a reliable indicator of future returns.
Choice Income is a proud winner of a Canstar 5-Star Rating for account based pension‡
How much you can transfer into your Choice Income account
The Government limits how much of your super you can transfer into an account based pension (such as Choice Income). This limit is known as the 'transfer balance cap' and refers to the total amount that can be held in any tax free retirement income streams. This cap does not apply to TTR Income accounts.
includes the total amount transferred from any superannuation account to any of your account based pensions, and
is managed by the Australian Taxation Office, so it includes money across any super fund, including defined benefit schemes.
From 1 July 2021, the general transfer balance cap is indexed to $1.7 million.
This means that from 1 July 2021 every individual has their own personal transfer balance cap between $1.6 to $1.7 million, depending on their circumstances. The transfer balance cap is:
$1.7 million if you've never had a retirement income stream before 1 July 2021; or
$1.6 million if you've already reached or exceeded the $1.6 million cap before 1 July 2021; or
between $1.6 million and $1.7 million, if you've had a retirement income stream before 1 July 2021, but didn't reach the $1.6 million cap.
The ATO calculates your transfer balance cap based on when you started your first retirement income stream and the highest ever balance of your transfer balance account. You can check your cap amount by logging into your myGov account.
The cap limits the total amount that you can have in the retirement phase to start a pension or annuity over the course of your lifetime, no matter how many accounts you hold or how many times you transfer money into the retirement phase.
Your transfer balance cap starts from the later of 1 July 2017 or the day you first start to become a recipient of a super income stream.
The government's reduced minimum drawdown rates have been extended for the 2022/23 financial year. This means from 1 July 2022, the reduced rates continue to apply to all account based pensions until 30 June 2023.
From 1 July 2023, the government's default minimum drawdown rates for the 2023/24 financial year will apply to all account based pensions, with no reductions.
If you open a Choice Income account anytime before 30 June 2023, the government's temporary reduced minimum rates still apply up to 30 June 2023, unless you choose a larger amount.
If you open a Choice Income account from 1 July 2023 onwards, the government's default minimum drawdown rates for 2023/24 apply, unless you choose a larger amount.
All Choice Income members can change drawdown amounts anytime via their online account and withdraw extra money when they wish.
Who can get started and when
When you reach your preservation age and have permanently retired, you can open your Choice Income account. You are also eligible to open an account if you change jobs on or after turning 60 or if you’ve turned 65 (even if you’re still working).
With Smart Default your payments and investment options are pre-selected, modelled and managed by investment experts.
This means you’re:
invested in 12% Cash and 88% Balanced investment option,
initially receiving at least 6% of your balance each year; and as you get older this minimum amount will change (see table below),
paid every two weeks, and
able to change your payment and investment options at any time.
Smart Default drawdown rates
From 1 July 2022, the Smart Default drawdown rates will stay reduced until 30 June 2023. The government has extended reduced minimum drawdown rates for all account based pensions, to 30 June 2023.
For the financial years 2019/20, 2020/21 and 2021/22, we temporarily reduced the Smart Default drawdown rates so members aged 80 years and over could manage their income payments differently during difficult times. This temporary reduction will be extended for the 2022/23 financial year until 30 June 2023. (See table below)
If you're a current Smart Default member, you'll get an email or letter every July confirming your payment amounts for the next financial year.
You don’t have to do anything, unless you choose to change your payment options*. You can do this anytime by logging into your account.
*Maximum withdrawal limit of 10% apply for TTR Income members.
Smart default option – Percentage of your balance you’ll receive each year
Your age on 1 July
TEMPORARY DRAWDOWN RATES END 30 JUNE 2023†
DEFAULT DRAWDOWN RATES START FROM 1 JULY 2023‡
80 to 84
85 to 89
90 to 94
95 and over
†The temporary Smart Default drawdown rates are for the financial years 2019/20, 2020/21, 2021/22 and 2022/23, and will end 30 June 2023. ‡The default minimum drawdown rates for Smart Default apply from 1 July 2023, for the financial year 2023/24 onwards.
Already have an AustralianSuper super account or TTR Income account?
When you move your AustralianSuper super account or TTR Income account to a Choice Income account, you could be eligible to receive a tax saving called a Balance Booster.
How Balance Booster works
When you have a super account or TTR Income account, AustralianSuper sets money aside to pay for future capital gains tax when investment assets are sold. When you move from a super or TTR Income account to a Choice Income account, your balance is transferred to a tax free environment and you could be eligible to receive an additional credit to your account balance – a Balance Booster.