Super Stream Transition to Retirement
If you are now entitled to access your super and you're still
working, you can open a 'Super Stream' Transition to Retirement
pension and receive income from your super as well as your job. Use
it to top up your income while working less or combine a pension
with salary sacrifice to boost your super the tax effective
way.
Here are some of 'Super Stream's" Transition to Retirement Pension
key features for you to consider.
Key Features
| Income payment amount |
Calclated based on your account balaced and minimum
pension factors, each year. Maximum of 10% of account balance
per year |
| Income payment frequency |
Semi monthly, Quarterly, half-yearly or annually |
| Minimum Investement amount |
$20,000 |
| Investment Choices |
Select one option or a mixture of options from a range of
investment choices.
If you do not make a choice, your money will be invested in the
Balanced options
You can swtich investment options with absolutley no charge
You can swtich investments up to once a week. |
| Lump sum withdrawals |
Under current legislation this option is not available |
Salary sacrifice and transition to retirement
pensions
Salary sacrificing your pay into your super and taking income
from a 'Super Stream' Transition to Retirement Pension instead,
could make a big difference to your retirement benefit. That's
because income from your super is tax free once you're 60, and for
most people, more tax effective than regular income between the
ages of 55 and 59.
The example below sets out how this strategy can work.
Bill, age 60, earns $50,000 p.a. and is currently salary
sacrificing 6% of his wage into his Intrust Super account. If he
increases his salary sacrifice contributions from $3000 to $22,000
p.a. and replaces the drop in take home pay with $14,600 p.a. from
a transition to retirement pension, his overall super balance would
be $3,675 better off after a year - without any less in his pocket
each fortnight.
| Bill |
Employment Income with 6% Salary Sacrifice
(p.a) |
Pension Income with $22,000 Salary Sacrifice
(p.a) |
| Salary |
$50,000 |
$50,000 |
| Less salary sacrifice to super |
($3,000) |
($22,000) |
| Less Tax |
($8,700) |
($3,300) |
| Less after-tax voluntary contribution |
$0 |
$1,000 |
| Plus Tranistion to retirement pension income |
$0 |
$14,600 |
| Net Income |
$38,300 |
$38,300 |
| Amount added to super |
|
| Salary Sacrifice |
$3,000 |
$22,000 |
| Voluntary Contribution |
$0 |
$1,000 |
| Co-Contribution |
$0 |
$1,500 |
| Less Contribution Tax |
($450) |
($3,675) |
| Less amount taken from super for transition to retirement |
$0 |
($14,600) |
| Overall Benefit to super |
$2,550 |
$6,225 |
More information
You should consider the Super Stream
PDS before purchasing a pension product.