Considering your super fund reaches its peak just as you retire, it makes sense that you would want to collect it gradually over time rather than all at once.
Your super fund reaches its peak just as you retire; this is when it's investing and generating returns from its largest possible sum. So it makes sense that you might want to collect it gradually over time (where it will continue to work for you) rather than all at once (where it may not be generating returns). This is called an ‘account-based pension’ and may be the secret to securing a comfortable retirement.
How does an account-based pension work?
An account-based pension works just like a normal income, but you are paid from your super instead of an employer. Most people choose to withdraw their super this way because it's both easier to manage and the fund can continue to make money for you as you go.
Tip: Your pension-based account may disqualify you for the government aged pension. Rest advice can help you understand the finer details here.
How do I open an account-based pension?
To access your super you need to meet a 'condition of release'. This can include when you have reached your preservation age and are fully retired; are over 65; or are permanently disabled.
Once you're qualified, you can convert your super account into an account-based pension just by contacting us over the phone . This kicks-off a regular payment from your super in instalments of your choosing (monthly, half-yearly, annually). This payment is regulated based on age (with both maximum and minimum amounts), and any funds that may remain after you pass away will be transferred to a beneficiary .