Transition to retirement
If you’re not ready to stop working altogether, but you'd like to reduce the hours you work, our transition to retirement pension (a Non-commutable account based pension) may be the pension product for you.
This type of pension allows you to retire at your own pace. You can keep working and receiving employer Super Guarantee (SG) contributions, and at the same time, you can move across some of your super savings into the pension and access it as an income stream.
This means that your accumulation balance can continue to grow through this period. At the same time, you’ll receive income payments subject to Government limits, transferred directly to your bank account.
Joining and eligibility
Joining is easy. All you need to get going is $10,000.
There are also no fees for joining, withdrawing, exiting, or investment switching. There are administration fees and costs of 0.35% of your pension account balance per annum. If your account balance is above $300,000, your administration fees and costs are capped at a balance of $300,000 (maximum of $1,050). (Investment fees and costs apply. A reserving margin and buy/sell spreads may apply). For more details on fees and costs, visit our fees and costs page or download our Income Streams PDS.
To be eligible, however, you must have reached preservation age and meet other eligibility requirements relating to your citizenship or residency – see the Income Streams PDS. for more information.
Benefits
There are number of benefits to opening an Non-commutable account based pension.
Being over the age of 60, all your pension income (through pension payments) are tax free. However you should note. However, you should note that investment earnings are subject to tax up to 15%, until you satisfy a condition of release that allows you to have a retirement pension.
Like a Vision Super Saver or Vision Personal account you can choose from the investment options we have to offer. This way you can choose the investment strategy to suit your circumstances and goal (Please note: the Three Bucket Pension strategy isn’t available.
You can increase your income (subject to Government limits on the pension payments you can receive). Continue receiving your salary from working your job but with a Non-commutable pension you can receive an extra source of income.
You can cut back on your hours while maintaining your income, which will provide you with more time to spend doing the things you love.
Please note: Other transition to retirement pensions are non-commutable, lump sum withdrawals aren’t generally permitted.
What to do next
Here are some actions you may want to consider.
Open an account
If you are ready you can open your account online. It’s as simple as that. Or if you prefer you can request a call and we can help set one up for you.
Need advice
Make an appointment with a Vision Super Financial Planner who can provide information and advice about your super or pension. Bookings can also be made by calling 1300 300 820.
We're here to help
If you don’t find it there, you can call our Retirement hotline on 1300 017 589. Or complete the quick contact form and one of our team will contact you within the next two business days.
Vision Super Financial Planners are employees of the Trustee (or a related entity) that are authorised to provide financial advice as representatives of Industry Fund Services Limited (IFSL) ABN 54 007 016 195 AFSL 232 514. Any financial advice provided by a Vision Super Financial Planner is issued on behalf of IFSL, not their employer. Vision Super Financial Planners can provide financial advice including personal advice about Vision Super that takes into account your personal circumstances. Before making a decision in relation to any of our products, you should read the appropriate Vision Super Product Disclosure Statement and Target Market Determination (TMD) or appropriate Active Super Product Disclosure Statement and TMD.