What's an account-based pension?
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.
- 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.
-
Show Transcript:
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
End Transcript
Choice Income: Helping you retire well
Your future in trusted hands
AustralianSuper is proud to have been awarded Australia’s most trusted super fund, 11 years running1
.
Strong long-term returns
Award-winning Choice Income Balanced option has an average return of 9.56% a year over 10 years2.
Investment choice
Choose from PreMixed options, DIY Mixed options or Member Direct options, depending on how hands-on you are (or not).
-
Important information
1 Readers Digest Most Trusted Brands – Superannuation category winner for 11 years running 2013 – 2023, 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.
2 SuperRatings Pension Fund Crediting Rate Survey, SRP50 Balanced (60-76) Index to 31 March 2023. Investment returns aren’t guaranteed. Past performance isn’t a reliable indicator of future returns.
Choice Income is a proud winner of a Canstar Outstanding Value award for account based pension3
OPEN NEW ACCOUNT
3AustralianSuper received the Canstar Outstanding Value Award for Account Based Pension in 2023. Awards and ratings are only one factor to be taken into account when choosing a super fund. For details view canstar.com.au/star-rating-reports/account-based-pensions/
Getting started with Choice Income
-
How much you can transfer into your Choice Income account
The government has a lifetime limit on the amount of super you can transfer into any tax-free retirement account(s). This is called the ‘Transfer balance cap’.
From 1 July 2023, the transfer balance cap is $1.9 million for individuals who commence their first account-based pension.
Depending on your circumstance and when your account-based pension commenced, you may have a personal transfer balance cap from $1.6 million to $1.9 million.
If/when you open a Choice Income account and exceed your personal transfer balance cap, you’ll need to reduce the amount of funds in your retirement account(s) by withdrawing the excess amount or transferring to a super account.
For more details, please read How Choice Income works on page 6 of the Choice Income Product Disclosure Statement at australiansuper.com/PDS
You can view your personal cap amount at any time, by logging into your myGov account and going to the Australian Taxation Office (ATO) section at my.gov.au
-
Minimum drawdown rates
When you have an AustralianSuper Choice Income or TTR Income account, every financial year you’ll need to withdraw a minimum amount. The amount is set by the government, is based on your age and increases as you get older. From 1 July 2023, the government's standard minimum drawdown rates, will apply to all account-based pensions:
AGE AT 1 JULY EACH YEAR STANDARD MINIMUM DRAWDOWN RATES FROM 1 JULY 2023 Preservation age to 64 4% 65 to 74 5% 75 to 79 6% 80 to 84 7% 85 to 89 9% 90 to 94 11% 95 and over 14% Find out more about minimum drawdown rates.
-
Who can get started and when
When you reach your preservation age and have permanently retired, you can open your Choice Income account. You're 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 To open a Choice Income account you need to be an Australian citizen/permanent resident, a New Zealand citizen or hold an eligible retirement visa.
For more on eligibility please refer to the Choice Income Product Disclosure Statement.
-
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.
If you want to have all your money in one place before you start, ensure you consolidate1 your super before opening an account based pension.
Keeping 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 $6,000 in your super account.
1 Before making a decision to combine your super, consider any fees or charges that may apply, and the effect a transfer may have on benefits in your other fund such as insurance cover. We recommend you consider seeking financial advice.
If you wish to claim a tax deduction for personal super contributions, you must lodge a notice of intent to claim a tax deduction with your other fund before you combine your super. -
Choosing your payment and investment options
If you choose your own options, you can
- decide how much income you’ll get (minimum limits apply)
- decide how often you’ll get payments – fortnightly, monthly, quarterly or twice a year, and
- choose DIY and PreMixed investment options, or manage your account using Member Direct,
-
Choosing the Smart Default option
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
Every July, you'll receive an email or letter confirming your payment amounts for that financial year. You don’t have to do anything, unless you choose to change your payment amount
You can change your payment options, by logging into your account online.
Smart default option – Percentage of your balance you’ll receive each year Your age on 1 July STANDARD DRAWDOWN RATES START JULY 2023 Under 80 6% 80 to 84 7% 85 to 89 9% 90 to 94 11% 95 and over 14% For details on Smart Default, view the Choice Income Product Disclosure Statement, or the TTR Income Product Disclosure Statement.
-
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.
Seamless Transfer - Member Direct
If you have Member Direct listed investments with your AustralianSuper super account, you can maintain them when you retire with a Choice Income account, partial transfers are not possible.
By requesting a Seamless Transfer to Choice Income (download form) you don’t need to sell-down or re-purchase your investments, avoiding transaction/brokerage costs and market risk. If you hold term deposits that haven't matured, they will need to be broken prior to the transfer. This may result in a reduction in the interest rate and other penalties may be charged by the issuer
More importantly, by using Seamless Transfer, you won’t trigger a tax event and you will remain invested in the market during the transfer process.
Choice Income Product Disclosure Statement - pdf, 2.9MB
For people retiring and needing to draw an income from their savings in a tax-effective environment