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Funding your retirement through super

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Pushlished date icon Published on 5 July 2022

Retirement is something that most of us look forward to. Often though, there’s a misconception that when the big day arrives, you have to withdraw all of your super.

It can be a worrying thought for some, especially given that markets go up and down and economies can be uncertain.

But the good news is… it doesn’t actually need to be this frightening.

So, instead of taking all your super as a single lump sum, there are different, usually more effective ways you can use your super that give you a regular income to fund the retirement lifestyle you’ve been looking forward to.

Your options for retirement

At Prime Super, we know that saving for the future with superannuation is only one part of your journey. The big goal of course, is a comfortable and fulfilling retirement. After all, it’s why you’ve been saving your hard-earned money in the first place, right?

One of the most popular options is to simply convert your super balance to an account-based pension when you hit retirement age. We call ours a retirement income stream account. Not only does it allow you enjoy a regular income, but also lets you make lump sum withdrawals for big-ticket items such as a holiday or new car. Alternatively, if you’ve turned 60 (but not yet 65) you can choose to gradually move to retirement and use your super to supplement your salary.

The other great thing about this system is that the unused part of your account balance remains invested and working for you, tax-free!

For more information on planning retirement, head to our retirement hub.

The retirement hub

Different income streams for different needs

When it comes to retirement plans, everyone is different. Some people want to ease into retirement by reducing their working hours, others, however, can’t wait to finish work and begin retirement life straightaway. 

That’s why there are two main types of retirement income streams you can start.

1. Transition-To-Retirement pension (also called a TTR pension)

This lets you gradually move to retirement without dramatically effecting your income, because you’re able to reduce the hours you work and use your super to top up your pay. You can even salary sacrifice your work income or make personal super contributions from it (subject to the contributions cap), both of which can bring handy tax* benefits. The one thing you can’t do is make lump sum withdrawals from transition pension.

2. Account-based pension (sometimes known as an allocated pension)

This is the option to choose if you’ve turned 60 and you want to retire completely. It provides you with a regular income and, subject to certain minimum requirements, you get to decide how often it’s paid and how much. You can also make additional withdrawals when you want.

It’s easy to open a superannuation pension

If you’re already a Prime Super member, you can simply apply for an income stream through your MemberOnline account. Just follow the link under ‘Alerts’ on your ‘Account summary’ page.

If you’re not a member of Prime Super, that’s ok too. You can join online, and easily transfer your super balance over.

Join online

Need to talk to a super specialist?

Before making any decisions about your super, chat to an expert. Our super specialists can go through our super income stream options. 

Book now

More than just retirement income

Whatever stage of life you’re at, expert support now can make a big difference to your future. It’s why our team are happy to provide guidance on:

  • Retirement preparation – from reducing your working hours and topping up your income with super through to boosting your super balance with salary sacrifice and tax savings
  • Centrelink eligibility rules
  • Contributions, including salary sacrifice and government co-contributions
  • Combining your super funds to save on multiple fees
  • Understanding your investment choices
  • Updating beneficiaries

Alternatively, you can call us on 1800 675 839 8am-8pm AEST Mon-Fri or email administration@primesuper.com.au

*We provide general tax information relating to superannuation. We recommend you seek tax advice from a professional tax agent.

This page is current at the date of publication and is subject to change. It contains general information and does not take account of your specific objectives, financial situation or needs or personal circumstances. You should seek professional financial advice, consider your own circumstances and read our Product Disclosure Statement (PDS) and Target Market Determination (TMD) before making a decision about Prime Super.