Retirement options

When you reach the age of retirement, it is up to you to decide what to do with your super savings. The option you choose will depend on your personal circumstances. We advise you to seek professional financial advice before making a decision on which path to take.

Transitioning to retirement

Our transition to retirement options can offer you greater flexibility. While you’re still working, you can put more money into your super and draw on your super savings to supplement your income. Or you can work part time and supplement your income by drawing a regular income stream from your super. So ultimately you can work fewer hours and still get the benefits of a full time wage.

There are also some tax benefits

Transitioning to retirement can also reduce your current and future tax burdens and help fund salary sacrifice super contributions from your present income. Once you start a transition to retirement income stream, the income you earn is not subject to the 15% tax rate that applies to money invested in a pre-retirement super account.

This does not affect your ability to contribute to your existing super.

How super benefits are paid

We can pay benefits as:

• A lump sum or series of lump sum draw downs.
• An allocated income stream.
• A non-commutable allocated income stream.
• A combination of the above.

Some methods of payment are not available for some types of benefit and this may change over time. For more information on payment options or how to access your super while still working if you have reached your preservation age, please contact us.

Lump sum payment on retirement

When you reach your preservation age, you can choose to withdraw your super fund as a lump sum.

If you choose this option you are responsible for making provisions for your savings to sustain your lifestyle throughout your retirement.

Retirement income stream

An income stream allows you to convert your super into a regular income.

This can be done using one of two possible options:

• Allocated superannuation income stream:

  This option allows you to receive a steady stream of money throughout your retirement. You can also access your funds and receive lump sum payments. You do not have to be an existing Prime Super member to take advantage of this product, you just need to have over $10,000 in super funds and have either met your preservation age or have met another condition of release, such as a total and permanent disability.

• Non-commutable allocated superannuation income stream:

  A non-commutable allocated income stream can give you access to your super funds while you are still working. With this option you can reduce the amount of hours that you work while supplementing your income with an income stream from your super. With this option you can only withdraw lump sums if you meet the conditions of release as specified in the PDS. When you retire or reach the age of 65 this will automatically transfer to an allocated superannuation income stream.

Read more on our super retirement accounts.

Your super payment may be subject to some form of taxation. To find out the latest information regarding this, please see the Australian Taxation Office web site.