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Retirement income account

Income accounts can provide a tax-effective and flexible retirement income using your super savings.

How does a Retirement income account work?

A Retirement income account provides members who have permanently retired from the workforce and have reached their preservation age, or have reached 65 years of age, with a regular income from their super.

With a Retirement income account, your super continues to receive investment earnings, however you can receive ongoing payments to your bank account until the funds and any investment earnings run out. Any payments or lump sum withdrawals from your account will be tax-free if you're aged 60 or over. You can choose how much income you wish to take and when you wish to take it, provided the total each year meets the minimum amount set by the Federal Government.

Note there is a cap of $1.6 million on the total amount you can have in superannuation retirement pensions like Sunsuper’s Retirement income account.

Easy account activation

Your Sunsuper for life membership includes an Income account for when you are ready to transition to retirement. As you approach retirement, you will start to see details of your Income account in Member Online and in various communications. When you reach preservation age, subject to minimum balance requirements, you can simply activate your Income account online, through Member Online. Alternatively, you can complete the Income account request form [PDF 810KB].

Retirement Bonus

When you’re ready to retire and activate your Retirement income account a Retirement Bonus* of up to $4,800 may be paid on the amount moved into your Retirement income account.

*If you meet the eligibility criteria, your Retirement Bonus will be paid into your Retirement income account at the end of the financial year that you activated your Retirement income account.

Learn more about the Retirement Bonus in the Retirement Bonus factsheet [PDF 150KB].

Thinking of withdrawing your super as a lump sum? Consider this!

Many people think they need to withdraw their super as a lump sum at retirement. You don't! In fact, you may be better off leaving it invested so it will continue to receive investment earnings.

Research shows that 60% of your investment earnings can come from post-retirement returns – which means that developing a retirement plan that keeps your money growing after you retire is just as crucial to your financial well-being as saving for retirement during your working years.

Based on the Russell 10/30/60 Retirement Rule, the sources of your investment earnings during retirement can look approximately like this:

  • 10% from money you saved during your working years
  • 30% from the growth of your savings before you retired
  • 60% from growth that occurs during your retirement

How does it work? The key is having an investment strategy in place up to and through retirement.

This is where we can help. Give us a call on 13 11 84 and we can make sure you have the right plan in place.

Source: Russell Investments: The 10/30/60 Rule. January, 2015

We’re here to help

Navigating retirement can be daunting at first, but you’re not alone. We can provide you with the help and advice you need to make the right choices. Our qualified financial advisers can answer your questions over the phone, just call 13 11 84