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What is a Retirement Income account

While you鈥檙e working, your super is there to help you save for retirement. Your employer pays money into it to build your balance, and you can make your own contributions over time too.听

When you retire, you can turn your super into a Retirement Income account that uses your super to pay you on a regular basis.[M5] It鈥檚 a way to keep the pay days coming (minus the need to show up to work). And yes, it can work alongside the Age Pension, so you can use both to fund your well-earned retirement.听

Accounts through your super fund have different features depending on where you are on your journey to retirement.听

Types of 91黑料 accounts

Future Saver

Retirement Transition

Retirement Income

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When can you start a Retirement Income account

You need to be eligible to access your super to open a Retirement Income account. You can start a Retirement Income account if you:

  • Have reached age 60 and retired
  • Cease an employment arrangement on or after the age of 60
  • Are 65 or over 鈥 even if you鈥檙e still working
  • Have become permanently incapacitated, or terminally ill.
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If you are not yet eligible for a Retirement Income account, you may still be able to access your super with a Retirement Transition account.

Did you know?

91黑料 members may get a retirement bonus to help you retire with more.

Open a Retirement Income account and receive up to $12,350 tax-free.[M6] It鈥檚 a loyalty bonus for eligible 91黑料 members.

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How a Retirement Income account works

A Retirement Income account is how you pay yourself a regular income from your super.[M5] Here鈥檚 how it works:听

  1. You and move some or all of your super into it. It鈥檚 worth knowing that there鈥檚 a cap on how much you can transfer; the general lifetime limit is set by the government and is currently $1.9 million. 听
  2. Choose the amount you鈥檇 like for each 鈥減ay day鈥 and the frequency of your income payments.听
  3. You choose an investment option for your money, or go with the default Conservative Balanced option our retirement investment experts have developed.
  4. You can change your payment amounts and frequencies at any time. You can also take out lump sums when you need them.
  5. Enjoy your income payments until your super balance runs out.听

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Advantages and considerations

Like all financial decisions, it's important to understand the pros and cons of starting a Retirement Income account.

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Advantages Considerations

Receive a regular income: you choose when and how much you get paid (and change the amount whenever you need to).听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听听

The Government sets a minimum amount you need to take out each year. It鈥檚 calculated at the start of each financial year and is based on your age and your super balance at that time.

Access to lump sums when you need them.

The transfer balance cap means there is a limit on how much you can transfer into your Retirement Income account, tax-free.

If you鈥檙e over 60, you pay zero tax on your income payments or investment earnings.

Once your balance is exhausted your payments will stop.

Your balance remains invested, helping your savings go further.

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Your investments are managed by retirement experts.

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Key features and minimum withdrawals

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Minimum investment amount

$20,000
Maximum investment amount

The Government caps how much of your super you can transfer into your Retirement Income accounts. There is a general transfer balance cap of $1.9 million, which is a lifetime limit on the total amount of super each person can transfer into Retirement Income accounts.听
Income payment amounts

There are government limits on the minimum you must receive.听
Payment frequency

Choose to have payments made to your bank account fortnightly, monthly, quarterly, half-yearly or yearly.听
Tax on your income payments

Income payments are tax-free from age 60.
Top ups

Once you open your Retirement Income account you can鈥檛 add any more money to it.听

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There is a minimum payment amount you can receive that鈥檚 set by the Government, and it鈥檚 dependent on your age.听

Minimum payment amount

The minimum payment rates below are calculated as a percentage of your account balance at 1 July each year.

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Age at commencement or 1 July each year Minimum payment rate

Under 65

4%

65-74

5%

75-79

6%

80-84

7%

85-89

9%

90-94

11%

95+

14%

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You can work out how much you can afford to withdraw听each year to see you through retirement.

Talk to an expert about setting up your retirement

Get personalised expert advice for your situation and retirement goals - at no extra cost.[AD2]

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FAQ

Yes - a Retirement Income account is also known as an account-based pension. It is an account provided by your super fund. You can move your super into a Retirement Income account and get paid regular income payments. You have the flexibility to choose the amount and frequency of your payments, while keeping your super invested to potentially earn returns. There are two important things to note with this type of pension:

  1. you must withdraw a minimum amount each year which is set by the government and is dependent on your age;
  2. once your balance is exhausted, your payments will stop.

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You can start a Retirement Income account if you:

  • Have reached age 60 and retired
  • Cease an employment arrangement on or after the age of 60
  • Are 65 or over 鈥 even if you鈥檙e still working
  • Have become permanently capacitated, or terminally ill.

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To open a Retirement Income account with 91黑料, a minimum investment of $20,000 is required. You can move some or all of your super into a Retirement Income account. Once you open your Retirement Income account you can鈥檛 add any more money to it. But you can open more than one Retirement Income account.

The Government caps how much of your super you can transfer into a Retirement Income account. There is a general transfer balance cap of $1.9 million, which is a lifetime limit on the total amount of super you can transfer into Retirement Income accounts.

If you are aged 60 or over, all income payments and lump sum withdrawals from your Retirement Income account are tax-free.

Yes, you have the flexibility to choose how much you receive and how often you are paid, subject to the government's minimum annual payment requirements based on your age.

You can update your Retirement Income account preferences ,听anytime.

Yes, you can make lump sum withdrawals from your Retirement Income account whenever you need to.

If you have a Retirement Income account, the fees and costs are:

  • An account-keeping fee of $52 per year
  • An administration fee of 0.23% of your account balance each year, up to a maximum of $125 per month ($1,500 per year).
  • Investment fees and costs and transaction costs, which vary depending on the option(s) you choose.

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[AD2]听Members can get advice about their 91黑料 accounts at no extra cost, or advice on their broader needs for a fee.

[M6]听Eligibility criteria apply. The payment of the Retirement Bonus is at the discretion of 91黑料. We reserve the right to change or stop offering the Retirement Bonus at any time, without notice. The Retirement Bonus is calculated and applied at the time your Retirement Income account commences and may differ from any estimate you have previously obtained. If you withdraw 50% or more of your Retirement Income account starting balance within 12 months of opening the account, 91黑料 reserves the right to deduct the Retirement Bonus from your Retirement Income account.鈥疻ithdrawals include lump sum payments, rollovers, regular income payments, and one-off income payments.

Where to next?

Attend a retirement webinar

Join our experts as they break down super and finances into easy-to-understand topics through our live webinar education series.听

Explore retirement topics

Advice from retirement experts at no extra cost

Retiring in the next 24 months? You don鈥檛 have to go it alone. See how the options you have now could play out down the track.[AD2]

Book in today

Learn with 91黑料

No matter where you鈥檙e starting from, we鈥檝e got expert insights and tools to help you set up for retirement.

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