Super Stream Transition to Retirement
If you are 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 in a tax effective
way.
Key Features
| Income payment amount |
Calculated based on your account balance 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 investment 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 option.
You can switch investment options with absolutely no charge.
You can switch 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 turn 60, and for
most people, more tax effective than regular income between the
ages of 55 and 59.
The example below shows 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 $3,000 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 Transition 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 Product Disclosure
Statement before purchasing a pension product.