How TransPension works
The money you use to open your pension account (plus any future amounts you put in prior to the payment phase and investment earnings) is used to pay you a regular income.
How much you can take out of your pension as regular income will depend on whether you have an Account Based Pension or a Transition to Retirement Pension. See below for an overview on our two pension options.
Income payments continue until your money runs out. If you die before your money runs out, any remaining money will be paid out in line with one of the two options you chose when you applied for the pension.
Payment timing
Payment options are:
- Twice monthly
- Monthly
- Quarterly
- Half-yearly
- Annually
Two pension options
TransPension is flexible and offers an Account Based Pension (ABP) or a Transition to Retirement Pension (TRAP) with the following features:
| Transition to retirement pension |
Account based pension |
| TransPension is open to anyone who has reached their preservation age (generally age 55 or over) or satisfies another condition of release. |
| You must be 55 or over. |
Any age (provided you meet a condition of release). |
| No. You can still work. |
Generally yes, however some exceptions apply. |
| A minimum deposit of at least $10,000 is required to start your pension. |
| Your pension will last as long as you have money in your TransPension account. |
| You can choose how much you receive each year subject to the minimum and maximum amounts set by the Government. |
You can choose how much you receive each year subject to the minimum amount set by the Government. |
| You can choose to receive payments twice-monthly, monthly, quarterly, half-yearly or annually. You must receive at least one pension payment a year. |
| You can change payment details as long as the minimum and maximum payment limits are met. |
You can change payment details as long as the minimum payment limit is met. |
| Yes. but only in very limited circumstances. A $50 withdrawal fee applies. |
Yes. Minimum of $1,000 (conditions apply). A $50 withdrawal fee applies. |
15% tax offset on the taxable part of pension payments (PAYG income tax rates apply) if you are under age 60 and above your preservation age, or you are totally and permanently disabled.
0% tax on all pension payments if you are 60 and over.
0% tax on investment earnings. |