When you are ready to start cashing out your money as a source of income in retirement, you’ll need to decide what to do with your SASS deferred benefit. Leaving some or all your money invested in super is a very tax friendly way to keep your money invested and help your money last throughout your retirement.
Key points:
- You can turn your super into regular income with a retirement income stream account. This is also known as an account-based pension.
- Income payments are 100% tax-free if you’re 60 or over.
- All investment earnings are 100% tax-free.
- Staying in super for retirement is a way to keep your savings invested in the market. This can boost your retirement income and help protect against the effects of inflation.
- You have access to a range of flexible investment options. Our experts design these to suit your retirement needs and the level of risk you’re comfortable with.
- You can transfer up to $1.9 million to the retirement income stream phase for the 2023/24 financial year.
- You have the flexibility to nominate a beneficiary.
Rolling your deferred benefit to another super fund
By rolling over your SASS deferred benefit at retirement to another super fund such as Aware Super, you can access products in the retirement phase of super that are designed to provide you with regular income, such as an account-based pension.
If you are planning to roll over your SASS deferred account to open a retirement income stream such as an Aware Super Retirement income account, you will need to follow the following steps:
- Join a super fund such as Aware Super and take note of the account number.
- Complete State Super SASS form 415 Application for payment of a Deferred SASS Benefit and select payment and/or roll over of your SASS and SANCS benefits.
- Include the amount you would like to cash out (if any) and the balance to roll over.
- In the section "how do you want to be paid" include the following information for the roll over to your Aware Super Account.
Aware Super
Unique Super Identifier (USI) 53226460365001
ABN: 53 226 460 365
Benefits of a retirement income account (account-based pension)
It’s simple to start withdrawing regular income from your super. Open a retirement income stream account and transfer some, or all, of your money from your super account.
- Income payments are 100% tax-free if you’re 60 or over.
- All investment earnings are 100% tax-free.
- You can choose the investment strategy for your savings.
- How much and when you get paid each year is entirely up to you providing you draw at least the minimum payments.
- Flexibility to cash out additional lump sum amounts.
- You’re not locked into the decisions you make when you set up your account.
- You can nominate a beneficiary for your account.
Throughout your retirement around 30% of the retirement income from super could come from investment earnings. So, it pays to keep your savings invested. You have the choice to change your mind at any time and withdraw your money or transfer it back into accumulation super.
What to look for when choosing a retirement income account
- Easy withdrawals. Look for an account that offers you the flexibility to withdraw your money as and when you need to.
- Fees should be clear and easy to understand.
- Look for a super fund with a strong track record and retirement investing expertise.
Starting a retirement income stream with Aware Super
You can open an Aware Super retirement income account with a minimum of $20,000. Follow these steps to set up your retirement account.
1. Consolidate any super accounts you have
To open your retirement income stream account, you’ll need to:
- Transfer your SASS deferred benefit to a super account (accumulation). You can add any personal savings as well.
- It takes a few minutes to combine any super you have into your Aware Super account. Find out more about consolidating your super.
2. Decide how much you need in retirement
We’ve made working this out easy for you with our simple target income tool. Find out more about how to work this out.
Once you know how much income you’ll need when you retire, you’ll need to deduct any Government Age Pension you may be eligible for. The difference will give you the amount of super you’ll need as income payments each year.
3. Open your retirement income account
You need to fill out the Start a retirement income stream application and send it to us. You can find this in the Product Disclosure Statement (PDF, 3.6mb).
This video takes you through how to fill in the application form, step by step.
Why choose Aware Super for retirement
Aware Super has been providing comprehensive financial planning services to SASS members, public sector employees and their families for over 30 years. This heritage drives our culture of authenticity, transparency, and a genuine desire to help our clients reach their financial and life goals.
We are retirement experts. We have retirement investment strategies which help safeguard your super, so you can relax and be confident that your super will go the distance.
Aware Super has a large and well-resourced team of over 100 investment professionals managing the risks and opportunities in the market. In fact, we are one of the largest providers of dedicated retirement investments in Australia. We’re also one of the longest standing retirement investors.
Our focus is to ensure our investment portfolio is robust to short-term impacts, but is also best-placed to take opportunities and deliver long-term outcomes, to help our members retire with more.
Our investment approach aims to deliver outcomes to help our members retire with more. We aim to invest in a mix of good quality assets. This helps you to grow and protect your super savings.
When you start a retirement income account with Aware Super you have a range of investment options to choose from. If you don’t make a choice, you’ll join 50% of our retired members in our Balanced Growth option.
This investment option has been designed by our team with the needs of retirees in mind . It aims to:
- generate strong, consistent returns
- protect against the effects of inflation, and
- reduce the impact of large market falls on investment returns.
This investment approach gives our members the confidence to enjoy their retirement.
Benefits of being an Aware Super member in retirement
Retirement support and advice are part of the service for Aware Super members. We’re here to help you enjoy your retirement with confidence and guide you throughout your retirement.
As an Aware Super member you have access to:
- expert super advice from our super advisers at no additional cost to you
- comprehensive advice from an Aware financial planner1 related to your personal financial situation
- online education, tools and webinars
- aged care and estate planning specialists
- online access to keep track of your investments and money.
We’ve helped thousands of Australians reach their financial and retirement goals. With 1.1 million members and $150 billion in funds under management, we have the size and expertise to make good investments and help our members retire with more. Your money is in trusted hands.
If you’d like expert advice to make more of your super and retirement, or understand your insurance and aged care options better, our financial planners1 can work with you to help you achieve your goals.
1 Financial planning services are provided by our financial planning business, Aware Financial Services Australia Limited, ABN 86 003 742 756 AFSL No. 238430
Where to next?
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.
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Create a secure and steady income in retirement.
Learn more about retirement
We’re here to help you create your next chapter with confidence and guide you throughout your retirement.
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.