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Transition to retirement income account

Our Transition to retirement income account is designed for members who have reached their preservation age but not yet retired. It pays you a regular income while you ease into retirement, or as you grow your super in a tax-effective way before you retire.

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Top up your income or grow your super

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Tax savings

Zero tax on your income payments if you’re over 60. Concessional tax on your income payments if you’re under 60.

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Set payment frequency and amount1

Ease into retirement or save tax as you grow your super

Depending on your situation and goals, a Transition to retirement income account may help you:

Ease into retirement

  • Receive regular payments to top up your income as you reduce your work hours

Continue to grow your super

  • Receive regular income payments to replace the salary sacrifice contribution amounts you make into your super account whilst working full time
  • Save tax now plus grow your super for retirement due to super's concessional tax treatment

No matter what you use it for, the Transition to retirement income account gives you the flexibility to:

  • Set your payment amount and frequency1
  • Pay zero tax on payments if you're over age 60 (and concessional tax if you're under 60)
  • Stop income payments (subject to having received the annual minimum legislated amount)
  • Easily move your account to a Retirement income account when you fully retire

 

Lisa Sunsuper Member Transition to retirement 

See how a Transition to retirement income account could work for you

At age 58, Lisa used a Transition to retirement income account to ease back on her working hours and retire fully and comfortably at age 65.

 Find out more

 

Talk to a Sunsuper financial adviser to get started today

 

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Or call us! We're here to help: 13 11 84

 

Find out more about our Transition to retirement income account

 

A Transition to retirement income account could provide you with regular income payments to:

  • Top up your income as you reduce your working hours on your way to full retirement, or
  • Receive regular income payments to replace the salary sacrifice contribution amounts you make into your super account whilst working full time.

A Transition to retirement income account is generally for members who have reached their preservation age, are still working and are looking to top up their income.

Once you’re eligible, you start by moving some of your super from your super accumulation account (such as a Sunsuper Super-savings account) to a Transition to retirement income account.

You will then start receiving regular payments from your Transition to retirement income account into your bank account so you can still live on a comfortable amount of take-home pay.

Any regular income payments are tax free if you’re over age 60 (and concessionally tax if you’re under 60).

Your Transition to retirement income account will continue to stay invested and keep working for you. You can choose your income payments and when you want to receive them, provided the total each year meets the minimum and maximum amounts set by the government.

The 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”. Your preservation age depends on your date of birth:

 

 When were you born? 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

As a result of the COVID-19 crisis, the government has reduced the minimum annual payment amounts for superannuation pensions like Sunsuper’s Transition to retirement income account. This is intended to help retirees, and those close to retirement, to manage the impact of volatile financial markets on their retirement savings.

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 annual minimum payment Reduced annual minimum payment applicable for 2019-20 and 2020-21 Maximum payment
Preservation age to 64 4% 2% 10%

Yes, you can continue to make contributions to your super. In fact, there may be favourable income tax advantages for you to do so, depending on your age and taxable income.

You will need to transfer a minimum $60,000 from your Super-savings account to your Transition to retirement income account when you open it. There are no maximum 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).

There is no cap on the amount you can have in a Transition to retirement income account. However, when you meet a condition of release such as permanently retiring, changing employers after age 60 or reach age 65, your Transition to retirement income account will change to a Retirement income account. Note that setting up a Transition to retirement income account may affect your eligibility for social security benefits so it’s important you check with your social security provider (e.g. Services Australia) or seek financial advice before making any decisions.

Choosing the right investment option for your Transition to retirement income account can make a big difference to your retirement income.

Our administration fee for our Transition to retirement income account is $1.50 per week plus 0.10% p.a. of your balance (up to the first $800,000). Investment fees and costs also apply.

To receive the government Age Pension, you need to reach the age pension age (currently 66) and have income and assets below certain thresholds. Your super accounts (whether a Super-savings account or Transition to retirement income account) will count towards both the Age Pension income and assets tests.

Seeking financial advice on your personal situation can help you work out if you’ll still be eligible for full or part of the government Age Pension once you activate your Transition to retirement income account.

If any of the above situations sound like you and you’re eligible, you can activate your Transition to retirement income account quickly and easily in Member Online or complete the Income account request form.

 

Talk to your financial adviser or contact Sunsuper

As a Sunsuper member, you have access to expert financial advisers to answer any questions about our accounts at no additional cost.
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Outstanding value pension fund offering

Since 2011, we’ve held Canstar’s highest 5-Stars Outstanding Value Account Based Pension rating. We were also a finalist for SuperRatings' Pension of the Year 2021, and our Income accounts have received the highest possible ratings from SuperRatings, Chant West and The Heron Partnership.3

Pension awards 2021

 

1. Flexibility to set your payment amount and frequency: The Government has set a minimum amount to be withdrawn each year. You must have at least taken your minimum income for the financial year before you can stop your payments and close your account. Members aged 64 or less who open a Transition to retirement income account can withdraw a maximum of 10% each year. You can also close your Income account at any time if your needs change.

2. Stop your income payments and close your account at any time (subject to having already received the minimum legislated income payments).

3. For ratings and awards information, visit sunsuper.com.au/ratingsagencies.