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).

Retirement income stream

This scenario is based on a member with a $200,000 and a $500,000 super account balance. The example shows the difference between having money invested in an accumulation account and an income stream account. It includes the following assumptions:

  • Assumed investment earnings are based on a Balanced risk profile net of fees and earnings tax:
    • Accumulation 5.50%
    • Retirement Income Stream 6.00%
  • The scenario does not take into account any additional contributions.
  • The scenario assumes the minimum drawdown from the retirement income stream of 2.5% for 2019/20 and 5% in the following financial years for someone aged 65-74.

Please note that all projections are based on current economic and investment conditions, current legislation (including tax, super and Centrelink amongst others), inflation and interest rates, estimates of an assumed future income and capital growth rates. So the ability of the projections to predict actual long-term outcomes is limited as these factors may change in the future. Accordingly, our figures are estimates only and do not constitute a guarantee of future investment performance. Regularly reviewing your plans will assist in amending your strategy to manage these changes.

This case study is for demonstrative purposes and includes general information and financial projections based on assumptions about the future. Results may differ depending on the accuracy of these assumptions, your situation and other factors.

It does not take into account your specific objectives, financial situation or needs. You should consider the information having regard to your personal circumstances. It is recommended that you consult a financial adviser if you require financial advice that takes into account your personal circumstances.

An initial discussion with a First State Super financial planner, at no cost to you, will help you determine the level of advice you may need to achieve what you want. Advice is provided on a fee-for-service basis and will vary depending on the complexity of your financial affairs. Fees for comprehensive advice relating to your super account with First State Super can be deducted from your account.

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?

Please consider combining multiple funds before opening an income stream. You are only able to make one transfer into your income stream, so it is important to have the full amount you want transferred in your super account before you make the transfer.

Combine your super now

Download and complete the Retirement Income Stream account form and read our Retirement Income Stream Member Booklet* to learn more about how it works, from choosing an investment mix to nominating a beneficiary.

Please consider your own financial position, objectives and requirements before making any financial decisions. It is also a good idea to seek financial advice.

When deciding how much you want to receive as an income and how often you want to receive payments, please consider how long you need your money to last.

Nominating a beneficiary is important as it tells us who you would like to leave any money in your retirement income stream account to in the event of your death. When deciding who gets your money when applying to open an income stream, you can choose from:

  • Your spouse;
  • Your child/children;
  • A dependent; or
  • Your legal personal representative.

Not a member of Aware Super?

To start an Aware Super Retirement Income Stream account you need to become a member of Aware Super. If you are not an existing Aware Super member, you can join the fund as a personal member, then you can deposit or roll money into your Retirement Income Stream account. This will also entitle you to all the benefits available to our members, such as free simple advice related to your account.

Join Aware Super

You should read the Member Booklet* for personal members before making a decision.

Please consider combining multiple funds before opening an income stream. You are only able to make one transfer into your income stream, so it is important to have the full amount you want transferred in your super account before you make the transfer.

Combine your super now

Download and complete the Retirement Income Stream account form and read our Retirement Income Stream Member Booklet* to learn more about how it works, from choosing an investment mix to nominating a beneficiary.

Please consider your own financial position, objectives and requirements before making any financial decisions. It is also a good idea to seek financial advice.

When deciding how much you want to receive as an income and how often you want to receive payments, please consider how long you need your money to last.

Nominating a beneficiary is important as it tells us who you would like to leave any money in your retirement income stream account to in the event of your death. When deciding who gets your money when applying to open an income stream, you can choose from:

  • Your spouse;
  • Your child/children;
  • A dependent; or
  • Your legal personal representative.

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.
  • The maximum you can transfer to your Retirement Income Stream account for tax-free investment returns is $1.6 million.
  • 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.

How much will you have in retirement?

Calculate your retirement

$1.6 million transfer balance cap

A $1.6 million^2 cap applies on the total amount of super that can be transferred into a tax-free Retirement Income Stream account. If you go over this cap, you will be subject to a tax on the estimated amount of the earnings on the excess.

Note: If you have more than one Retirement Income Stream, the cap applies to the combined amount in all your Retirement Income Stream accounts (investment returns are excluded).

We’re here to help you

Aware Super^3 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.

Book your appointment

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 and 2020/21 Normal 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.

  1. 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 and the 2020–21 financial years.

  2. This amount is subject to indexation in line with the consumer price index, in increments of $100,000 each 1 July when the accumulated indexation reaches this amount.

  3. Financial planning services are provided by our financial planning business, Aware Financial Services Australia Limited, ABN 86 003 742 756 AFSL No. 238430.