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Don’t miss the deadline!

If you’re making extra contributions, get it done by 26 June. Find out more about deadlines and limited transaction periods for this financial year here.

What is a Retirement Transition account

If you’re between 60 and 64 years old, a Retirement Transition account lets you access some of your super while you’re still working. With this type of account, you can withdraw up to 10% of your balance each year, giving you flexibility to ease into retirement on your terms.

Accounts through your super fund have different features depending on where you are on your journey to retirement. 

Types of Aware Super accounts

 

When can you start a Retirement Transition account

If you’re still working, and you’re between 60 and 64 years old, a Retirement Transition account could be a good option. If you’re fully retired, a Retirement Income account might better suit your needs.

To open a Retirement Transition account, you'll need:

You’ll need to keep your super account open so your employer can keep making contributions.

 

How a Retirement Transition account works

  1. Move some of your super to a Retirement Transition account — the minimum amount to set up the account is $20,000.
  2. Choose how often and how much you’d like to be paid. You can draw up to 10% of your account balance each year, and you can change your payment amounts at any time.
  3. Like your super, the balance in your Retirement Transition account will be invested so it can keep growing over time. You can choose your investment option or go with the default option designed by our retirement experts.
  4. Once you’re 65 your account will automatically convert to a Retirement Income account, with even more benefits.

 

Advantages and considerations

There are some considerations when it comes to opening a Retirement Transition account.

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Advantages Considerations

Work less, without reducing your income. Using your super savings to top up your salary gives you flexibility - you can work less but not live on less.

Using some of your super now could mean having less money when you retire.                                                                                                                                            

Tax-free income. Your income payments from your Retirement Transition account are 100% tax-free.

The government sets minimum withdrawal rates.

Your money stays invested. Your balance stays invested so it can continue to grow. Your investment earnings are taxed at 15%.

 

 

Key features and minimum withdrawals

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Minimum investment amount to open a Retirement Transition account

$20,000

Income payment amounts

There are government limits on the minimum and maximum payments you must receive – see FAQs below.

Payment frequency

Choose to have payments made to your bank account fortnightly, monthly, quarterly, half-yearly or yearly.

Tax on your income payments

Income payments are 100% tax-free from age 60.

Top ups

Once you open your Retirement Transition account you can’t add any more money to it. You can open another account though.

 

How to open a Retirement Transition account

Ready to open a Transition to Retirement account? Just log in, opens in a new window, and make sure you have:

  • Your personal details
  • How much you want to transfer from your super
  • How much you want to withdraw as regular income
  • What you want to invest in
  • Who you want to nominate as a beneficiary.
     

If you’re not yet an Aware Super member, you can also complete the ‘Open a retirement account’ form, opens in a new window in the PDS.

Before you open a Retirement Transition account

Before you apply, it’s important to read the Target Market Determination, opens in a new window (TMD) and Product Disclosure Statement, opens in a new window (PDS).

 

Fees and costs

If you have a Retirement Transition account, the fees and costs are:

  • An account-keeping fee of $52 per year
  • An administration fee of 0.17% of your account balance each year (capped at $1,300 per year), plus
  • Investment fees and costs and transaction costs, which vary depending on the option(s) you choose.

 

Lower fees for retirees

We’ve introduced lower fees for retirees with a Retirement Income account or Retirement Transition account, starting 1 June 2025. The asset-based administration fee has gone down from 0.23% to 0.17%, which works out to a reduction up to as much as 25%.[F7]

The annual fee cap has also dropped, from $1,500 to $1,300.

Talk to an expert about setting up your retirement

Get personalised expert advice for your situation and retirement goals - at no extra cost.[AD2] 

 

FAQ

Where to next?

Attend a retirement webinar

Join our experts as they break down super and finances into easy-to-understand topics through our live webinar education series. 

Your retirement planning guide and checklist

Giving up work and living off your retirement savings takes planning. Understand your options and how to get to the best retirement for you.

Learn with Aware Super

No matter where you’re starting from, we’ve got expert insights and tools to help you set up for retirement.