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While ‘comfortable’ and ‘modest’ may mean different things to different people, the below table is a guide on how the Association of Superannuation Funds of Australia (ASFA for short) defines a comfortable and modest retirement lifestyle: 

	Comfortable retirement	Modest retirement	Age Pension
Single	$45,962 a year	$29,139 a year	$21,222 a year *
Couple	$64,771 a year	$41,929 a year	$31,995 a year *
	One annual holiday in Australia	One or two short local breaks near where you live each year	Even shorter breaks or day trips in your own city
	Regularly eat out at good quality restaurants	Infrequently eat out at affordable restaurants	Only club special meals or inexpensive takeaway
	Owning a reasonable car	Owning an older, less reliable car	No car or, if you have a car, affording repairs may be difficult
	Afford regular haircuts at a good hairdresser	Afford regular haircuts at a basic salon or pensioner special day	Less frequent haircuts or getting a friend to help cut hair
	Take part in a range of regular leisure activities	Take part in one paid leisure activity infrequently, such as trips to the cinema	Only taking part in free or very low cost leisure activities, rare trips to the cinema
	Replace kitchen and bathroom over 20 years	No budget for major home improvements – can do repairs but no scope to replace kitchen or bathroom	No budget for major repairs, such as a leaky roof
	Top level of private health insurance	Basic private health insurance	No private health insurance

Table source: http://www.superguru.com.au/retiring/how-much-super-will-i-need  

* Base rate before payment of supplements.

If you’re looking to slowly dial down your work hours, or want to keep working full-time while taking advantage of some potential tax savings or extra income from your super – our flexible Transition to Retirement Income Stream (TRIS for short) could help!

The benefits and features of a TRIS
 

Opening up a TRIS alongside your super account can provide you with a number of benefits, all depending on your needs and preferences.

Here are a number of ways a TRIS could benefit you:

• Get your work-life balance back - work less without reducing your income: Take away the worry of a reduction in your pay when reducing your work hours by supplementing your income with payments from your TRIS. 
• Get your financial balance back - pay off debt before you retire: Keep your work hours and use the additional cashflow from your TRIS to pay off high-interest debts like a mortgage or credit card bill. 
• Get your income tax back – earn the same but pay less tax: You could save on income tax by salary sacrificing into your super account to reduce your taxable income. Then, use payments from your TRIS to replace the portion of your salary that’s salary sacrificed. That way you’re keeping the same income while saving on tax and topping up your super! 

Plus, there is more:

• Enjoy tax-free income from age 60: With a TRIS account, you won’t be paying any tax on income payments once you turn 60 years old. 
• Flexible income: You can choose how often you’d like to receive payments, including fortnightly, monthly, quarterly, half-yearly or yearly.

How to set up a TRIS
 

For a detailed summary of the features, benefits, and information that can assist you with filling out the form, read our Transition to Retirement Income Stream Member Booklet.

To set up your Transition to Retirement Income Stream, download and complete the Transition to Retirement form.  
 

Download the Transition to Retirement form

To help you understand what you need to complete and guide you through filling out the form, watch our video:

Remember, we’re here to help so please give us a call on 1300 650 873 Monday to Friday 8:30 am to 6:00 pm (AEST/AEDT) and 8.30 am to 5:30 pm (AWST) if you have any queries.

Things to keep in mind 

To work out if a TRIS is right for you, you need to know the rules about its use. These include: 

• You can start a TRIS with a minimum investment of $20,000. 
• You generally can’t make lump sum withdrawals. 
• You must withdraw between 2% and 10% of your TRIS balance each year¹. 
• Drawing from your super now could mean you have a lower balance when you fully retire. While you’re under 60 years of age, your TRIS payments will be subject to tax – any taxable component will be taxed at your marginal tax rate less a 15% offset. Investment earnings in your TRIS also receive the same concessional tax treatment as your super where earnings are taxed at up to 15%. 
• From age 60, you don’t pay any tax on income payments from your super.  

What to do when you’re ready to fully retire 

Once you permanently retire, you’ll be eligible to open a Retirement Income Stream (RIS for short). This lets you tap into more flexible income payment options, like lump-sum withdrawals, and you can benefit from tax free investment returns. If you open a TRIS, and turn 65 years old, your Transition to Retirement Income Stream will automatically turn into a Retirement Income Stream – no additional paperwork required. 

If you’re eligible, moving your super into our platinum rated² Retirement Income Stream (RIS for short) could be a really smart move.

It allows you to draw regular payments from your super while it stays invested in the super environment. The best part - investment returns in a RIS are completely tax free! Plus if you’re aged 60 and over, your regular payments are tax free too! And you also have the flexibility to withdraw any larger amounts when you need to at any time.  

The features and benefits of a Retirement Income Stream (RIS)
 

Setting up a RIS can be a really smart option. It gives you a regular income from your super, all while earning strong investment returns in the tax-effective super environment.

Currently, your money is in an accumulation account. By, moving your super into a RIS you can get extra benefits, such as tax free investment returns and regular income payments - like you’re used to with a salary. Plus you can make a withdrawal (lump sum) from your investment at any time.

And if you’re aged 65 and over, you don’t have to wait until you’ve retired to take advantage of these benefits now.

Not yet ready to fully retire? A RIS can give you flexibility

If you’re aged 65 and over and not yet ready to fully retire, opening up a RIS while also keeping your super account can provide you with a number of benefits, all depending on your needs and preferences.

Here are a number of ways you could use your RIS alongside your super:

• Get your work-life balance back - work less without reducing your cashflow: Take away the worry of a reduction in income when reducing your work hours by supplementing your take-home pay with payments from your RIS. 
• Get your financial balance back - pay off debt before you retire: Keep your work hours and use the additional cashflow from your RIS to pay off high-interest debts like a mortgage or credit card bill. 
• Get your income tax back – earn the same but pay less tax: You could save on income tax by salary sacrificing into your super account to reduce your taxable income. Then, use payments from your RIS to replace the portion of your salary that’s salary sacrificed. That way you’re keeping the same income while saving on tax and topping up your super!
  Keep in mind, from age 65 you must satisfy the work test to make voluntary contributions to your super (you have to have worked a minimum of 40 hours within 30 consecutive days in the current financial year).  

Our Retirement Income Stream (RIS) is platinum rated

You can feel confident when choosing to set up an income stream with us. Our platinum rated RIS has received a top Platinum Performance rating for 15 years running by independent ratings agency Super Ratings.

Are you eligible for a Retirement Income Stream?
 

To be eligible to set up a Retirement Income Stream, you need to:

• Reach age 65 (whether you retire or not); or 
• Reach your preservation age (currently at 58 years) and formally retire; or 
• Leave a job after reaching age 60.

How to set up a Retirement Income Stream  
 

For a detailed summary of the features, benefits, and information that can assist you with filling out the form, read our Retirement Income Stream Member Booklet. 

To set up your Retirement Income Stream, download and complete the Retirement Income Stream account form. 
 

Download the form  
 

To help you understand what you need to complete and guide you through filling out the form, watch our video: 

Things to keep in mind 

• You can start a RIS with a minimum investment of $20,000. 
• From age 60, all withdrawals, including cash lump sum payments are tax free. Prior to age 60, income payments and lump sum withdrawals may be subject to tax. 
• There is a minimum amount you’ll need to withdraw each year. It’s a sliding scale from 2% while you’re under 65, up to 7% when you’re 95 and older³. 
• You may be able to transfer up to $1.7 million (depending on your personal transfer balance cap) to your Retirement Income Stream account for tax-free investment returns.
• Your RIS account will cease when your balance is exhausted. How long it lasts depends on how much you transfer into your account, how much you take in payments each year and the investment returns you receive. 

Minimum withdrawal limits³ based on age