What is an account based pension?
When you retire, you can get 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. Once you turn 60, you no longer pay tax on your income payments or investment returns, even if you return to work after retirement.

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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, 10 years running.*
Strong long-term returns
Award-winning* Choice Income Balanced option has an average return of 10.27% a year over 10 years.†
Investment choice
Choose from PreMixed options, DIY Mixed options or Member Direct options, depending on how hands-on you are (or not).
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Important information
*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 Outstanding Value award for account based pension‡
OPEN NEW ACCOUNT‡AustralianSuper received the Canstar Outstanding Value Award for Account Based Pension in 2022. 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
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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.
The cap:
- 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.
You can visit the ATO website for details.
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Minimum drawdown rates
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.
Find out more about minimum drawdown rates.
What this means for new Choice Income members
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.
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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).
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.
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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 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 $10,000 in your super account.
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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,
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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.
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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.
For details, visit australiansuper.com/MinimumDrawdowns
*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‡ Under 80 6% 6% 80 to 84 6% 7% 85 to 89 6% 9% 90 to 94 6% 11% 95 and over 7% 14% †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.
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.
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.
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, 2.7MB
For people retiring and needing to draw an income from their savings in a tax-effective environment