Our Pre-retirement Super Pension provides you with regular, tax-effective pension payments. If you're over 60, pension payments are tax-free.
The pension payments can be used as part of a 'Transition to Retirement' (TTR) strategy to:
- boost your super by making tax-effective super contributions, or
- wind back your working hours.
Minimum pension payments
You must draw a minimum level of pension payments each financial year - the amount depends on your age when you first open your account, and is reset 1 July each year.
|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...|
|65 to 74||5%|
|75 to 79||6%|
|80 to 84||7%|
|85 to 89||9%|
|90 to 94||11%|
|95 or more||14%|
Note: During the first financial year of your account, the minimum payment is proportional to the number of days left until 30 June.
Maximum pension payments
You cannot draw more than 10% of your account in any financial year. For the first year, the maximum limit is calculated at the date your account starts - you must also choose whether to receive:
- the maximum 10% amount, or
- some lesser amount being not less than the minimum amount.
Your maximum payment amount is then recalculated on 1 July each year.
No lump sum withdrawals
You generally cannot make any lump sum withdrawals unless the money is:
- paid from an unrestricted non-preserved benefit - a minimum of $1,000 applies and the withdrawal does not count towards your 10% maximum limit
- used to make a payment split under family law, or
- used to pay a superannuation surcharge debt or an excess contributions tax assessment to the ATO.
The maximum amount of money you can start your Pre-retirement Super Pension with is $1.6 million.
For more information see the TransPension Product Disclosure Statement (PDS) and Application Form or call us on 1800 222 071 between 8am and 8pm (AEST/AEDT) weekdays.