How does a Transition to retirement income account work?
- Once you’ve reached preservation age you have the option to draw a regular income from your super.
- You can draw down a minimum of 4 per cent up to a maximum of 10 per cent of your Transition to retirement income account balance in any year to help supplement your other income.
- When you activate your Transition to retirement income account, you need to invest a minimum of $60,000.
- You can continue to make contributions to your super. In fact, there may be favourable income tax advantages for you in doing so, depending on your age and taxable income.
- There are no restrictions on the amount you can transfer from your Super-savings account to a Transition to retirement Income account (although you will need to keep some balance in your Super-savings account if you, or your employer, are still making super contributions).
- Once you turn 65 or fully retire, your Transition to retirement income account will be converted to a Retirement income account with no limit on the maximum amount you can take as income and no restrictions on lump sum withdrawals. There is a cap of $1.6 million on the total amount you can have in one or more superannuation retirement pensions like Sunsuper's Retirement income account.
Please note: Accessing your super benefits may affect your eligibility for social security benefits. Call us on 13 11 84 to check.
Ready to activate your Transition to retirement income account?
If cutting back your hours at work and easing your way into retirement sounds good to you, you can activate your Transition to retirement income account quickly and easily in Member Online or complete an Income account request form .
The Federal Government “preserves” your super by restricting when you can access your money. This means any money you invest in super stays in super, until you at least reach your “preservation” age. The preservation age is a Government specified age at which you can access your super benefits once you retire and depends on your date of birth as shown below:
|Date of birth||Preservation age|
|Before 1 July 1960||55|
|1 July 1960 - 30 June 1961||56|
|1 July 1961 - 30 June 1962||57|
|1 July 1962 - 30 June 1963||58|
|1 July 1963 - 30 June 1964||59|
|After 30 June 1964||60|
How to work out your minimum annual payment
You'll be able to choose how much income to take and when you wish to take it, provided a minimum amount set by the government is withdrawn each year. You can withdraw as much as you like above the minimum.
|Your age||Standard percentage factors||Reduced percentage factors applicable for 2019-20 and 2020-21|
|Less than 65||4%||2%|
|95 or older||14%||7%|