An account-based pension keeps your super invested during your retirement. This turns it into a regular income to help fund your retirement lifestyle.
At Aware Super we call this a retirement income account.
You can choose how much your income payments will be, when you get paid, and can make extra cash withdrawals whenever you need to.
Around 30% of the retirement income you get from super could come from investment earnings (see chart below). Best of all, investment earnings are 100% tax-free, and if you’re 60 or over, your income payments are 100% tax-free too.
So, keeping your savings invested in a retirement account is a great way to make your super last longer in retirement.