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A transition to retirement account pays you an income from your super savings while you continue to work. This means you can ease into retirement on your terms. Once you have access to your deferred benefit you can roll over your money to another superannuation fund and start a transition to retirement account.

Key points:

  • A transition to retirement income account allows you to keep working and access some of your super.
  • Whilst a transition to retirement income stream is not available within SASS, it can be accessed by rolling over to a fund that offers this product.
  • To be able to access your super as income using a transition to retirement account you need to have reached your preservation age and your scheme earliest retirement age (generally 58).

Rolling your deferred benefit to another superfund

To use your SASS deferred benefit to start a transition to retirement income account you will need to roll your benefit to another super fund (such as an Aware Super Transition to Retirement Income Stream account).

There are benefits of rolling your SASS benefit over to another super fund and having your super all in one place:

  • You could save on fees - having more than one super account means you could be paying multiple fees.
  • Less paperwork - keep track of your super more with just one account.
  • More for you - a bigger balance invested now, could mean more for you when you retire.

Find out more about consolidating your super.

Benefits of a transition to retirement income account

When you have both a transition to retirement account and a regular super account they can work together in a tax-effective way.

  • Work less but maintain your income. Topping up your salary with super gives you flexibility – you can work less, but not live on less.
  • Combined with making additional contributions to super such as salary sacrifice or a personal deductible contribution, a transition to retirement income account is a smart way to put your money to work and save on tax.
  • When you salary sacrifice to super you only pay 15% tax, which could be less than your marginal tax rate.2
  • Choose when you get paid. Your income payments can be paid fortnightly, monthly, quarterly, half-yearly or yearly. It’s up to you.
  • Your super stays invested. The investment returns you earn by keeping your money invested can help you enjoy a higher income in retirement.
  • Turns into tax-free income. Once you turn 60 your income payments from your super become tax-free.
  • When you reach 65, your transition to retirement account will automatically convert into a retirement income stream account (also known as an 'account-based pension'). This account has tax-free income payments and investment returns.

2 Some of your contributions are taxed at a higher rate if the total of your earnings and super contributions is $250,000 or more.

Setting up a transition to retirement account that gives you the most benefit can be complex. For help working out if it’s a good option for you, book an appointment with an Aware financial planner1.

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

Things to consider

  • Income payments from this account are subject to annual minimum and maximum amounts.
  • The minimum you can draw is 4%^ of your account balance each year and you can’t withdraw more than 10% per year.
  • Investment earnings are concessionally taxed at a maximum of 15%.
  • If you are 60 or older, income payments are tax free.
  • Between your preservation age and age 59, the taxable portion of your income payments are taxed at your marginal tax rate. But you receive a 15% tax offset in your tax return.
  • Because you’re withdrawing some of your super, consider how long you’ll need it to last.
  • Once you reach 65, your Aware Super Transition to Retirement account automatically converts to an account-based pension. At Aware Super this is a Retirement Income Stream account.
  • You can open an Aware Super Transition to Retirement account with a minimum of $20,000.

^ 2% per year for 2022/2023.

Why choose Aware Super

We're an industry fund with strong, long-term performance* so you’ll be joining over 1.1 million Australians who invest their super with us.

Find out more

*SuperRatings Fund Crediting Rate Survey 31 December 2022 (SR 50 Growth (77-90) Index approximately 50 options). Aware Super Accumulation High Growth option delivered an average yearly return over 10 years to 31 December 2022 of 9.52% p.a. compared to the index median of 8.73% p.a. for the same period. Returns are net of investment fees, tax and implicit asset-based administration fees. Investment returns are not guaranteed. Past performance is not an indicator of future performance.

Source: Chant West Super Fund Fee Survey 30 September 2022, High Growth [81-100% in growth assets] investment option index and $50,000 account balance. Total fee includes combined administration, investment fees and costs. Aware Super MySuper – High Growth option total fee is 1.08% p.a compared to 1.33% p.a. (overall average – approximately 88 funds) and 1.44% p.a. (Retail fund average – approximately 18 funds). Fees and comparisons may differ for other investment options and account balances.

Where to next?

Join Aware Super

Join 1 million+ Australians who choose to invest their super with Aware Super.

Start a transition to retirement account

Create a secure and steady income in retirement.

Need advice?

At Aware, our financial planners are experienced in your State Super scheme and know the ins and outs of planning for a successful retirement.

To help you make better decisions for your retirement, book a no cost, obligation free appointment.

This communication contains general advice only, which means we have not taken into consideration your objectives, financial situation or needs (circumstances). Before taking any action, you should have regard to your own circumstances, and seek appropriate professional advice if you think you need it. Further, this communication does not contain, and should not be read as containing, any recommendations to you in relation to Aware Super's products. You should also read our product disclosure statement (PDS) and Target Market Determination before making a decision to acquire a product. Contact us to make an appointment to see one of our financial advisers and read their Financial Services Guide carefully if you are seeking financial advice.

Financial planning services are provided by Aware Financial Services Australia Limited, ABN 86 003 742 756, AFSL No. 238430. Estate planning services are provided by Aware Super Legal Pty Ltd (ACN 606 835 170), an Incorporated Legal Practice.