A pension allows you to:

  • Draw a regular income from your super rather than taking it as a lump-sum
  • Create a tax-effective environment for your super savings
  • Control your retirement income by selecting how much and how often you want to receive payments.

Like your super, you can choose how your money is invested by selecting investment options that suit you.

Although the amount you choose to receive from your pension is up to you, a minimum payment based on your age and account balance must be paid each year. You can change the frequency and amount at any time, or even make one-off withdrawals.

 

 

Take a look. You may be surprised by the potential tax savings!

If you're 60 and over

  • No tax payable on the transferred amount used to start a pension*
  • No tax on investment earnings
  • No tax on pension payments or withdrawals from your pension account.

If you're under 60

  • No tax payable on the transferred amount used to start a pension*
  • No tax on investment earnings
  • Tax will be deducted from your regular pension payments on a ‘Pay As You Go’ (PAYG) basis, in the same way tax was deducted from your salary when you were an employee. Provided you have reached your preservation age, you could claim a 15% rebate on the taxed portion of pension payments made to you and 10% of the untaxed portion.

*except where that amount includes an untaxed element, then 15% is deducted from that amount.

Social security eligibility

Even with our Pension, you may still be eligible to receive the Government Age Pension and other social security benefits. Talk to a financial adviser or contact Centrelink for more information.

Tax on death benefits

Lump-sum payments to dependants are generally tax-free. However, there may be tax involved if paid to non-dependants.