How a transition to retirement account works
Starting a transition to retirement account can help you create a retirement strategy that suits you.
1. Open a transition to retirement account and transfer some of your super into it.
To open a transition to retirement account with Aware Super (we call it a ‘Retirement Transition account’), you can either join online or complete the ‘Open a retirement account’ form in the Aware Super Retirement Income PDS, including selecting ‘Retirement Transition’ under step 4.
This form will let us know how you want your account to be set up. We’ll need to know:
- 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, and
- who you want to nominate as a beneficiary.
Before you apply, read the Product Disclosure Statement and Target Market Determination for more information.
2. If it suits your goals, set up a salary sacrifice arrangement with your employer so part of your pay will automatically go into your regular super account.1
You will need to ask your employer to provide you with all the details on how to set up your salary sacrifice. Your employer will let you know how this will affect your overall salary package. Make an appointment to speak with a qualified financial adviser about whether this suits you and your goals.
1 You cannot contribute any more money into your transition to retirement account once its set up with your initial investment.
3. If you decide to salary sacrifice, you can then top up your take home pay by replacing some or all the amount you’ve contributed into your super account with income from your Retirement Transition account.
In section 7 of the 'Open a retirement account' form, you’ll tell us:
- how much, and
- how often you want to get paid, with money from your Retirement Transition account.
When your account is set up with us, you can make changes to your income payments at any time.
You’ll have two accounts:
- your super account. This account will continue to receive employer and other contributions while you work and
- your Retirement Transition account. This account will pay you a regular income.