Support for members approaching retirement



Approaching retirement and need some help?
Sooner or later, most of us start to think about what our life will look like once we’ve retired. TWUSUPER is here to provide the help you need as you start to think about the best way to use your super in retirement. You may have questions about:
- How much super you ‘should’ have at your age
- How the Centrelink Age Pension works with super
- How your assets and income might be assessed by the Government upon retirement
At TWUSUPER we take a holistic approach to members' super and retirement. This means that we don't just focus on an individual's super account balance, but on how each member can best use their super to help them provide for the best possible retirement outcome.
To ensure that we help members get the best possible outcome, we provide our members with:
Guidance when you're thinking about retirement
TWUSUPER is an industry super fund created by employer and employee groups in transport to ensure transport workers can access their best possible retirement outcomes. We aim to provide simple and inexpensive services and we’re here to answer your questions. You can phone us for general advice about topics including investments, contributions, retirement income products and beneficiary nominations.
If you need advice that takes into account your particular personal circumstances, you can speak to one of our financial advisers*. Any fees for personal advice can come out of your super account rather than your hip pocket, and only for the advice you ask for.
To get an idea of the difference between general and personal advice, take the downsizer for over 55s as an example.
You are receiving general advice if one of our specialists:
- provides you with an overview of the Downsizer eligibility rules,
- explains the general benefits and risks of making Downsizer contributions, and/or
- tells you what we generally recommend to members considering Downsizer contributions.
However, if you wanted advice about how you could personally benefit from the downsizer contribution yourself, that would be personal advice.
Transactional and retirement goal fees
Below is an overview of the goals-based personal advice you can get from TWUSUPER, and the fees (if any) that may apply.
*TWUSUPER ABN 77 343 563 307 has engaged Industry Fund Services Limited (IFS) ABN 54 007 016 195 AFSL No 232514 to facilitate the provision of financial advice to members of TWUSUPER. Advice is provided by one of our financial advisers who are employees of TWU Nominees Pty Ltd and Authorised Representatives of IFS. Fees for personal advice may apply. Further information about the advice services that can be provided is set out in IFS’ Financial Services Guide, a copy of which is available by calling 1800 222 071. IFS is responsible for any advice given to you by its Authorised Representatives.
Common questions about retirement answered
We've put together a list of common questions from our members about such things as:
- taxation,
- when you can access your super, and
- how retirement pensions work with Centrelink.
If you don't see the answer to your query below, please call us 8am to 8pm (AEST/AEDT) on 1800 222 071
Our retirement income products
The purpose of super is to allow you to draw a retirement income from your invested savings. TWUSUPER’s super pension product is called TransPension. Depending on how you use it, it's known as a Retirement Super Pension or a Pre-retirement Super Pension. As an industry super fund run only to benefit members, we do everything we can to keep these products as low cost as possible while ensuring that our members can set them up in a way that best suits their needs. For example, you can choose how much to draw down (above the minimum limits set by the Government), how you’d like it invested and how frequently you receive payments.
Retirement Super Pension
Our Retirement Super Pension (TransPension) can provide a source of retirement income years before you qualify for the Centrelink Age Pension. In many cases you can still qualify for the Centrelink Age Pension while drawing an income from a TWUSUPER Retirement Super Pension at the same time. This product is designed as a simple way for you to use your super to fund your retirement and can be adapted to meet your needs.
Pre-retirement Super Pension
If you're still working and over age 60, you could open a Pre-retirement Super Pension using a Transition to Retirement (TTR) strategy to reduce your work hours without reducing your take-home pay.
Frequently asked questions
Below we answer some of the most common questions we hear from members as they start to plan how they will support themselves after they have finished working. Members can also arrange a call back from a retirement specialist if they have any follow up questions.
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Can I take out all my super as a lump sum?
You can access your super as a lump sum once you've met a 'condition of release'. This means that your funds can be released from your super account and credited to your bank account. If you're over 60 and meet a condition of release, this lump sum will be tax free if paid from a taxed superannuation fund like TWUSUPER.
Generally, you’re able to access your super when you have reached:
- your preservation age and have permanently retired,
- 60 and have stopped working for an employer, or
- 65 (it doesn't matter if you haven't retired).
However, the purpose of super is to help provide an income for you in retirement - therefore you should seek advice about whether withdrawing a lump sum is the right option for you.
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What's the 'preservation age'?
The preservation age is the age at which you may be able to access your super either as a regular pension payment or as a lump sum. This age has gradually been rising to 60 and is based on when you were born:
- If you were born on or after 1 July 1964 your preservation age is 60 years
- If you were born before 1 July 1964 you have already reached your preservation age
Even if you have reached your preservation age but are under age 65, you must meet another condition of release (to access your super either as a pension or as a lump sum withdrawal).
Once you're age 65, you can access your super regardless of your employment status and you don't have to meet any other condition of release.
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How does super work with Centrelink?
Once you meet your qualifying age to access the Centrelink Age Pension, all your finances will be assessed by Centrelink to determine your eligibility. This includes money in super and pension accounts.
Centrelink Age Pension while you also draw an income through a Retirement Super Pension.
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What happens if I need aged care?
Your income for aged care purposes is assessed in the same way as it is for the Age Pension. This means that, unlike taxable income, your income from superannuation and government income support payments are included in determining your overall income.
The Australian Government has a number of resources to help you plan for your aged care needs.
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Can I leave my super pension to someone else?
When you open your Retirement Super Pension with us, you can nominate who will receive the balance in your account should you die before your account balance runs out.
If you die while there is still money in your account, that money will be passed on to your beneficiaries (which can be one or more dependants or the legal personal representative of your estate). Dependants include your spouse*, children, a financial dependant or a person with whom you're in an interdependency relationship. If there are no dependants or legal personal representative, another person such as a relative can be nominated as a beneficiary.
There are two ways a TransPension account can be distributed to beneficiaries - as a regular pension payment (known as a reversionary pension) or as a lump sum.
* The law defines a spouse as another person (whether of the same or different sex) who is legally married to you, or a person who, although not legally married to you, lives with you on a genuine domestic basis in a relationship as a couple.
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Can I still put money into super if I retire and go back to work?
Yes, you can contribute to super again if you return to work, but this money will go into a separate Super account, not your retirement account. If you want to open a retirement account while still working, you could benefit from a Pre-retirement Super Pension, which would allow you to take advantage of a Transition to Retirement Strategy.
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Are there rules about how much of my super pension I must withdraw each year?
The minimum amount you're legally required to withdraw from your account annually depends on your age when you first open your account and is reset 1 July each year. This is known as the 'drawdown' rate as you are drawing down your balance to pay yourself an income in retirement.
For a Retirement Super Pension, there's no maximum limit on the amount of your pension payments. If you have a Pre-retirement Super Pension, you can withdraw a maximum of 10% of your TransPension balance as pension payments each year.
Minimum pension payments
Note: During the first financial year of your account, the minimum payment is proportional to the number of days left until 30 June.
Minimum drawdown rates
Australia’s super pension rules require you to withdraw (or draw down) a certain percentage of your super pension each year. The minimum payment depends on your age and is recalculated on your balance at 1 July each year.
Standard minimum drawdown rates
When you first open your account, and on 1 July each year thereafter, if you are aged... The minimum amount of your account that must be drawn is... Under 65 4% 65 to 74 5% 75 to 79 6% 80 to 84 7% 85to 89 9% 90 to 94 11% 95 or more 14% -
What if I run out of super before I die?
It's likely that you will qualify for the Centrelink Age Pension long before your super runs out. With TWUSUPER you can keep an eye on how much money is left in your Retirement Super Pension and you also have access to help and advice* to manage your pension payments.
*TWUSUPER ABN 77 343 563 307 has engaged Industry Fund Services Limited (IFS) ABN 54 007 016 195 AFSL No 232514 to facilitate the provision of financial advice to members of TWUSUPER. Advice is provided by one of our financial advisers who are employees of TWU Nominees Pty Ltd and Authorised Representatives of IFS. Fees for personal advice may apply. Further information about the advice services that can be provided is set out in IFS’ Financial Services Guide, a copy of which is available by calling 1800 222 071. IFS is responsible for any advice given to you by its Authorised Representatives.
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I've seen figures for 'comfortable' and 'modest' retirements. What do these mean?
Each quarter, ASFA releases a calculation of the estimated amount of super needed for a comfortable or modest retirement. The calculations fall into two categories - the lump sum needed at retirement, and the amount you may need to spend each year to maintain a comfortable or modest retirement.
Some notes on the ASFA calculations:
- They assume that the retiree owns their own home
- They are updated quarterly to take account of changes to the economy, inflation, etc
- They assume that those aged 85 or over will spend less
- They are broken down into 'single' and 'couple'
- The Age Pension alone does not provide enough for a modest retirement
- These calculations are generalisations and individuals and couples may require more or less money to achieve their desired retirement outcome
A 'modest' lifestyle in retirement
Under ASFA's calculations, a modest retirement would mean:
- Basic private health insurance, limited gap payments
- Basic mobile, modest internet data allowance
- Owning a cheaper, older, more basic car
- Infrequent leisure activities, occasional trip to the cinema
- Limited budget for home repairs, household appliances
- Budget haircuts
- Need to keep a close watch on all utility costs and make sacrifices
- Limited meals out at inexpensive restaurants, infrequent home-delivery or take-away
- Limited budget to replace or update worn items
- Annual domestic trip or a few short breaks
Budgets for various households and living standards for those aged 65-84 - modest retirement
Single Couple $32,930 per year $47,475 per year Source: ASFA Retirement Standard for around age 65-84, September Quarter 2024
Superannuation balances required to achieve a modest retirement at age 67
Single Couple $100,000 $100,000 All figures in today’s dollars using 2.75% AWE as a deflator and an assumed investment earning rate of 6 per cent. The fact that the same savings are required for both couples and singles reflects the impact of receiving the Age Pension.
A 'comfortable' lifestyle in retirement
Under ASFA's calculations, a modest retirement would mean:
- Top level private health insurance, doctor/specialist visits, pharmacy needs
- Fast reliable internet/telco subscription, computer/android mobile /streaming services
- Own a reasonable car, car insurance and maintenance/upkeep
- Regular leisure activities including club membership, cinema visits, exhibitions, dance/yoga classes
- Home repairs, updates and maintenance to kitchen and bathroom appliances over 20 years
- Regular professional haircuts
- Confidence to use air conditioning in the home, afford all utilities
- Occasional restaurant meals, home-delivery meals, take-away coffee
- Replace worn-out clothing and footwear items, modest wardrobe updates
- Annual domestic trip to visit family, one overseas trip every seven years
Budgets for various households and living standards for those aged 65-84 - comfortable retirement
Single Couple $51,814 per year $73,031 per year Source: ASFA Retirement Standard for around age 65-84, September Quarter 2024
Superannuation balances required to achieve a comfortable retirement at age 67
Single Couple $595,000 $690,000 All figures in today’s dollars using 2.75% AWE as a deflator and an assumed investment earning rate of 6 per cent.
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Can I change my pension payments?
Once you have a Super Pension with TWUSUPER, you can make changes to:
- Payment frequency (fortnightly, monthly, quarterly, half-yearly or yearly)
- Payment amount (must meet the minimum amount for all TransPension accounts and not exceed the maximum amount of 10% for Pre-retirement Super Pension)
- The bank account you want your pension paid into
- Update your beneficiary nominations. To find out more about nominating beneficiaries for your pension account, see the Choosing a beneficiary fact sheet.
- Your contact details (address, email and phone number)
- Your investment choices
All payment changes can be made by submitting a Pension Variation form (PDF) or calling 1800 222 071 between 8am and 8pm (AEST/AEDT) weekdays.
Changes to your contact details and investment choices can be made by logging in to Member Online or calling us on 1800 222 071.
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How are retirement income streams taxed?
If you have reached your preservation age and have met a condition of release, you can roll your superannuation balance into a TransPension Retirement Super account with TWUSUPER.
Investment earnings are tax-free and members over the age of 60 will also have access to tax-free pension payments and tax-free lump sum withdrawals.
If you're under 60, tax may be applicable and depends on many factors. Use the form at the bottom of this page to speak to a specialist about this.
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Does super affect the deeming rates for the Government Age Pension?
If you've retired, 'deeming' is a calculation used by Centrelink to make an estimate of what income you'll earn from your assessable financial assets. This includes (but isn't limited to) interest on bank accounts, shares, managed funds, super and super pensions. It is used to work out your eligibility for the Government Age Pension.
General advice on this website has been prepared without taking into account your objectives, financial situation or needs. Before acting on the advice, consider its appropriateness. Refer to our Product Disclosure Statements (PDS). The PDS is relevant when deciding whether to acquire or hold a product. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the TMDs at twusuper.com.au/tmd