Taking out your super when retired

Once you're retired and over preservation age, you can access your super as a regular income through a Rest Pension retirement account.

You can do this by either taking it out in small regular payments - similar to earning an income, in one go as a lump sum, or as a combination of the two.

Regular payments

Taking your super out in regular payments means you can choose how and when you receive them. Another main benefit of this is the money that remains invested in your retirement account continues to work for you by providing a return.

Tax 

Once you’re over age 60, generally the payments you take out of your Rest Pension retirement account are tax free. 

Amount and frequency

How much you take out and how often depends entirely on you but there is a minimum amount you must take out. This depends on your age and account balance, calculated at the beginning of each financial year. For example, if you’re aged between 65 and 74 you’re required to withdraw at least 5% of your account balance. You can also change your payment amount and frequency easily online through MemberAccess.
 

Where your payments are drawn from

If you have your pension invested in more than one investment option, you can choose from which investment option you'd like either your pension income stream or a lump sum withdrawal to come from. This can be done by selecting one of the following:

Icon of Withdrawal split - Percentage

Withdrawal split - Percentage

You can nominate a specific percent to be taken out of each investment option so it’s not all coming from one place. For example, if you have money invested in two investment options, you may want 40% of your payments to come out of investment option X and 60% to come out of investment option Y.

Icon of Case study: Simon takes out a Rest Pension and selects a withdrawal percentage split

Case study: Simon takes out a Rest Pension and selects a withdrawal percentage split

Simon is 66 and holds $150,000 in his account on 1 July 2017. Based on his age, he must take out a minimum of 5% of his account balance each year which he does through monthly payments of $625. Simon has requested that 20% of this amount comes from his Balanced investment option and the remaining 80% from his Cash option.

Icon of Withdrawal - Order

Withdrawal - Order

You can select a withdrawal order. For example, you may select investment option X as your first option to draw from and investment option Y as your second choice. This means all payments will initially be taken out of X. Once the money is gone from this option, it will come out of your second choice, Y. All of your investment options need to be included as part of your withdrawal order.

Icon of Case study: Helen takes out a Rest Pension and selects a withdrawal order

Case study: Helen takes out a Rest Pension and selects a withdrawal order

Helen is 75 and has $500,000 in her account on 1 July 2017, invested within the Bonds and Core Strategy investment options. Under the pension payment rules she must take out 6% of her account balance. She's selected Bonds as her first choice to draw her payments from with the Core Strategy as her second choice. This means her pension payments (and all other withdrawals, fees and costs) will be withdrawn from her Bonds investment option until the money is gone, at which time it will be drawn from her Core Strategy option.

Lump sum

If you have a retirement account, you can also take out your super as a lump sum. This doesn’t mean you have to take it all at once though. You can take some of it out and leave the rest to access as you need it, or take it out as an income stream.

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