Supplement your lifestyle with regular payments and cash lump sums. Also take advantage of greater tax breaks, such as tax-free investment returns.
Once you reach age 60, all income you withdraw, including cash lump sum payments, is 100% tax free.
You don’t have to formally retire to be eligible for a Retirement Income Stream. You can start accessing a Retirement Income Stream once you:
- Reach 65 – whether or not you retire;
- Once you reach your preservation age (currently 57) and formally retire; or
- After leaving a job after reaching age 60.
Adjust your retirement income as you go
You have the freedom to receive regular payments, just like when you’re working, when you set up a Retirement Income Stream from your super account. You also have the flexibility to dial them up or down, to take a cash lump sum if needed – say for a holiday or home renovation – and to choose when you want to receive your payments (fortnightly, monthly, quarterly, half-yearly or yearly).
Start a Retirement Income Stream in a few simple steps
Setting up a Retirement Income Stream account is simple. You simply link it to your super account and decide how much of your super balance you want to transfer across.
Already a member of Aware Super?
Not a member of Aware Super?
Things to keep in mind
- You can start a Retirement Income Stream with as little as $20,000.
- There is a minimum amount you will 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 older^1.
- From 60 years, all withdrawals, including cash lump sum payments are 100% tax free. Prior to age 60, income payments and lump sum withdrawals can be subject to tax.
- Choose one or more of our 12 investment options for your income stream.
- 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 Retirement Income Stream 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 investments returns you receive.
Transfer balance cap
There is a general transfer balance cap of $1.7 million, which is a lifetime limit on the total amount of superannuation that can be transferred into retirement phase income streams.
From 1 July 2021, all individuals will have a personal transfer balance cap between $1.6 million and $1.7 million. Individuals who start their first retirement phase income stream on or after 1 July 2021 will have a personal transfer balance cap of $1.7 million.
It’s important to note that everyone will have their own personal transfer balance cap. You will need to visit ato.gov.au to find out what cap applies to you.
This cap applies to all retirement phase income stream accounts you may have (investment returns are excluded). Transition to Retirement income streams do not count towards your personal transfer balance cap. If you exceed the cap, additional tax may apply.
We’re here to help you
Aware Super^2 are here to provide you with support and advice that’s tailored to you. Maximising any Centrelink entitlements, asset allocation, income streams, estate planning, tax breaks, lump sums: there’s a lot to consider. Moving into retirement is a big change – you don’t need to go it alone.
Simple retirement advice
As an Aware Super member, you get access to simple financial advice about your super, Retirement Income Stream options and insurance.
Advice for more complex issues
When planning for retirement, financial advice can make a big difference. For a cost, one of our fully qualified financial planners can help with a retirement plan that delves into areas such as maximising your age pension entitlements, investments outside super and much more.
Preservation age
Your preservation age is when you can first access your super. It changes, depending on your date of birth and is currently 57 years of age.
| Date of birth | Preservation age (years) | Earliest Access |
|---|---|---|
| Before 1 July 1960 | 55 | Eligible now |
| 1 July 1960 – 30 June 1961 | 56 | Eligible now |
| 1 July 1961 – 30 June 1962 | 57 | Eligible now |
| 1 July 1962 – 30 June 1963 | 58 | May be eligible |
| 1 July 1963 – 30 June 1964 | 59 | 1 July 2022 |
| After 30 June 1964 | 60 | 1 July 2024 |
Minimum withdrawal limits^1 based on age
| Your age | Temporary minimum 2019-20, 2020-21 and 2021-22 | Minimum | Maximum |
|---|---|---|---|
| Under 65 | 2% | 4% | 10% (TTR only) |
| 65–74 | 2.5% | 5% | No maximum |
| 75–79 | 3% | 6% | No maximum |
| 80–84 | 3.5% | 7% | No maximum |
| 85–89 | 4.5% | 9% | No maximum |
| 90–94 | 5.5% | 11% | No maximum |
| 95+ | 7% | 14% | No maximum |
* This Product Disclosure Statements retains the First State Super branding and trustee name. For more information on the change of our brand and trustee name to Aware Super Pty Ltd see here.
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As a result of the COVID-19 crisis, the Government has reduced the minimum annual payment required for account-based pensions by 50% in the 2019–20, 2020–21 and 2021-22 financial years. ↩
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Financial planning services are provided by our financial planning business, Aware Financial Services Australia Limited, ABN 86 003 742 756 AFSL No. 238430. ↩
