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Transition your retirement

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

 

Types of Aware Super accounts

  • Future Saver: this is for when you are working. It’s where your employer makes before‑tax contributions, and you can make before or after-tax contributions.
  • Retirement Transition account: open this when you’re ready to reduce your working hours. Use your super to top up your income so you can work less without reducing your pay.
  • Retirement Income account: this is for when you’ve retired from work, but not your pay days. Invest your super in a tax-effective way, while you enjoy regular payments.[M5]

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.

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:

  • To be between 60 and 64 years old and still working.
  • A Future Saver super account with Aware Super - that’s your normal everyday super account, which you’ll need to keep open so your employer can continue making contributions.
  • A minimum transfer of $20,000 from your super account into your new Retirement Transition account.

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 yearly (minimums also apply), 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 one or more investment options, 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.

 

AdvantagesConsiderations
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 generally 100% tax free.Minimum annual income payment rates set by the government apply, and you can draw up to 10% of your account balance each year.
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

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 upsOnce 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 Retirement Transition to Retirement account? Just log in, 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 join online or complete the ‘Open a retirement account’ form in the PDS.

Before you open a Retirement Transition account

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

Fees and costs

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

  • An account-keeping fee of $52 per year
  • An administration fee of 0.16% of your account balance each year (capped at $1,300 per year), plus
  • Investment fees and costs, which vary depending on the option(s) you choose.

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FAQ

The account works by allowing you to transfer your super into a Retirement Transition account. You can then receive regular income payments from your super savings to top up your income. You can be paid up to 10% of your account balance each year. How often you are paid is up to you. This can be tailored to suit your needs.

To be eligible for a Retirement Transition account, you must have reached your preservation age, are aged 64 or under, and still working.

Preservation age is the age the government allows you to access your super money.

Find out your preservation age

If you are aged 65 or over, you are only eligible for a Retirement Income account.  This is because once you turn 65 there are no longer any restrictions on accessing your super.

Set up a Retirement Income account

If you are retired from the workforce and over 60, you can open a Retirement Income account. 

Find out more about a Retirement Income account.

Investment returns could make up to 30% of your super balance at retirement, so it’s important to make the right investment choice. Aware Super has a menu of investment options designed to meet your changing needs.

You can decide how your money is invested and can switch between investment options at any time.

Choose from our default option, Conservative Balanced, or create your own mix of investment options.

Find out more about your investment choices.

You'll need to make a minimum initial investment of $20,000 to open the account.

No. Except in some limited circumstances, you cannot make lump sum withdrawals from your super. See the Retirement Income Product Disclosure Statement (PDS), for details.

Yes. Because you are still working you need a super accumulation account to receive employer or other contributions into. It also can continue to give you access to insurance. Insurance is not offered in retirement.

This depends on your age. If you are aged 60 or over all income payments are 100% tax free.

Before the age of 60, income payments may be subject to tax.

All investment earnings in a Retirement Transition account are taxed at 15%, the same as a regular super account.

You can’t salary sacrifice directly into a Retirement Transition account, but you can have it paid into your super (accumulation) account.

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.

Salary sacrifice your super

It’s up to you how your money is invested. You can leave it to us and we will invest your money in our Conservative Balanced option. But if you’d like to make your own investment choice, we offer investment options that you can mix and match, depending on how hands-on you want to be in managing your super. You can switch at any time. Learn more about your investment options.

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

Where to next?

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[AD2] Members can get advice about their Aware Super accounts at no extra cost, or advice on their broader needs for a fee.