Everyone has their own vision for retirement, and at Vision Super we offer flexible retirement income options designed to support the way you want to live in this next stage of life.
Whether you’re ready to stop working completely or simply want to ease into retirement by winding back work, we’re here to help you make the most of your super with products that give you flexibility, regular income, and continued investment opportunities. So what’s available to you?
Account based pension
“I’m retiring. No more work for me.”
If you’re ready to stop work and start enjoying retirement, our Account based pension is designed to turn your super savings into a regular, tax-effective income stream. Think of it like replacing your salary with payments from your super, but with the flexibility to choose how much income you receive (as long as you take out at least the minimum amount) and how often you’re paid.
Your remaining balance stays invested, giving it the potential to continue growing over time. When you’re working and saving in your super, the earnings from your investments are taxed. Some people retire and just start taking money out, but one of the advantages of setting up an account-based pension rather than just taking money out of your account is that for most people, the investment earnings are then tax-free (some people with very high balances will pay tax). You can also choose from a range of investment options to suit your goals and lifestyle, including our Three Bucket Pension strategy, which is designed to help members manage investment and cash-flow needs throughout retirement.
To open an Account based pension, you’ll usually need to have reached the preservation age of 60 and be retired, or have retired due to permanent disability, or be aged 65 or over. A minimum balance of $10,000 is required to get started.
Some of the key benefits include:
Tax-free pension payments (for most members)
No tax on investment earnings within your pension account (subject to balance caps)
Flexible income payments to suit your needs
A range of investment options to choose from
Receiving the Retirement bonus (if eligible).
Please note, once you’ve started a pension account you can’t add more money to it. However, you can continue contributing to a separate accumulation account.
For more details on fees and costs, visit our fees and costs page or download our Income Streams PDS.
Transition to retirement
“I’m over 60 and I’d like to cut back on work, but I’m not ready to stop.”
If you’re not quite ready to retire fully, our Transition to retirement pension (also known as a Non-commutable account based pension) could help you cut back on work without taking a big cut to your income.
It might sound too good to be true, but a Transition to retirement pension lets you access part of your super as regular income while you continue working and putting money into your super. It can provide extra flexibility and more time to enjoy the things that matter most to you. For members aged 60 and over, pension payments are generally tax free, so you may pay less tax overall on your income. This could mean you don’t need as much because you’re losing less to tax – but that will depend on individual circumstances, and investment earnings are still taxed until you fully retire. For more details on fees and costs, visit our fees and costs page or download our Income Streams PDS.
To set up a Transition to retirement pension you must be aged 60 and over, and there are eligibility requirements including a minimum starting balance of $10,000. Like with our retirement pension, you can choose from a range of investment options to match your goals and comfort with risk. You can decide how much you’ll receive (as long as you meet the minimum drawdown requirement, and do not withdraw more than a maximum of 10% of your balance each financial year) and choose a frequency that best suits you (from twice monthly, monthly, bi-monthly, four monthly, quarterly, half-yearly or one lump sum payment a year).
If you have any questions about setting up a super pension – or anything else to do with your Vision Super account - we’re here to help. You can call our Retirement Services team on 1300 017 589 between 8.30am and 5pm, Monday to Friday, or email us anytime on memberservices@visionsuper.com.au
Any advice in this article is general only and has been issued by Vision Super Pty Ltd (ABN 50 082 924 561) (AFSL 225054) as the Trustee of the Local Authorities Superannuation Fund (ABN 24 496 637 884) (‘Vision Super’). The advice does not take into account your personal objectives, financial situations or needs. Before acting on the advice, you should consider whether it is appropriate for you, having regard to your own circumstances, and obtain the appropriate Vision Super Product Disclosure Statements (PDS) and Target Market Determinations (TMD) available at www.visionsuper.com.au.