A retirement pension, or income stream, provides you with a regular income from your superannuation savings.
Account-based pensions are the most common type of superannuation pensions. Many retirees choose an account-based pension, also known as an income stream, because it can offer flexibility and tax concessions.
So how does an account-based pension work?
Generally you need to be permanently retired to access your super but a transition to retirement pension, sometimes known as a pre-retirement pension, is a specific type of account that allows you to begin receiving an income from your super even if you haven’t permanently retired.
A transition to retirement pension works in the same way as an account-based pension outlined above, except that a maximum of 10% of your account balance can be taken in pension payments each year.
This type of strategy might be helpful if:
Want to see how our Retirement Access pension accounts compare with products from other super and pension funds in Australia? Find out more.
When you take these choices and factors into account, together with the potential tax implications and possible effects on Age Pension or other government entitlements, it’s important to get the right advice for your circumstances before finalising any decisions.Find out more