What is an account-based pension?
Did you know taking your super as a lump sum when you reach retirement age isn’t the only option?
Opening an account-based pension (or retirement income account) means receiving regular income payments while your super stays invested – giving you more potential investment returns through your retirement.
With our account-based pension – Choice Income – you can access extra money from your super whenever you need it.
The benefits of Choice Income
- Turn your super into a regular income
Receive regular payments just like when you were working so you can enjoy your retirement. You can use payments from your Choice Income account to top up any Government Age Pension payments you’re eligible for. - Flexibility and control – you’re
never locked in
Set up your account in a way that suits you with flexibility and control over the amount and frequency of your income payments. You can withdraw extra money to pay for bills, holidays or other big ticket items any time. - Keep your super working for you
Keeping your money invested once you’re retired means your savings continue to grow and you’ll have peace of mind knowing that AustralianSuper has a history of long-term strong returns*. - Sweeten your retirement with a
Balance Booster
When you move your AustralianSuper super account or TTR Income account to Choice Income, you could be eligible to receive an additional credit to your retirement balance, a ‘Balance Booster’.
“I thought once we retired we wouldn’t be able to travel anymore. But after four years, we had more money than we started with.”
Set up your account in a way that suits you
Take it easy with Smart Default
Smart Default is the easy way to set up your account. Leave the decisions to us now, but change your options later if you need to. Your payments and investment options are pre-selected, modelled and managed by a trusted team of investment experts, who specifically designed this option for Choice Income members.
* Investment returns are not guaranteed. Past performance is not a reliable indicator of future returns.
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Setting up with Smart Default means:
- you’re invested in 12% Cash and 88% Balanced investment option
- you receive at least 6% of your balance each year*
- you’ll get paid every two weeks
* A higher percentage will apply if you are over age 80.
Choose your own options
If you prefer, you also have the freedom to choose your own investment options, as well how often you receive income payments and how much those payments will be. You can set the payments as a fixed amount, or the minimum percentage of your account balance.
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Choosing your own investment mix means:
- you must be paid at least once a year, or you can choose to be paid every two weeks, once a month, once every three months or twice a year, and
- you must be paid a minimum percentage of your account balance each year.
To get to know our options and how they can help you achieve your best retirement, head to our Your investment options page.
Important things to know about Choice Income
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Before you open Choice Income
You’ll need a minimum balance of $50,000 to deposit into your new Choice Income account, and it’s important to note you can’t add money to a Choice Income account once you’ve opened it.
It’s a good idea to make sure you have all your money in one place before you start. We can help you consolidate your super before opening a retirement income account.
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Keep a little in super to keep your insurance
You’re not able to have insurance on a Choice Income account, so if you want to keep your insurance you may want to keep a balance of $10,000 in your super account. -
$1.6 million cap
There is a lifetime cap of $1.6 million for each individual that can be transferred from Super accounts to retirement income accounts.
The cap:
- includes the total amount transferred from any superannuation account to any of your retirement income accounts
- is managed by the Australian Taxation Office, so it includes money across any super fund, including defined benefit schemes
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When you can get started
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).
Date of birth Preservation age (years) Before 1 July 1960 55 1 July 1960 – 30 June 1961 56 1 July 1961 – 30 June 1962 57 1 July 1962 – 30 June 1963 58 1 July 1963 – 30 June 1964 59 1 July 1964 or after 60
Choice Income Product Disclosure Statement - pdf, 2.6MB
Choice Income Product Disclosure Statement - pdf, 3.3MB
For people retiring and needing to draw an income from their savings in a tax-effective environment