Examples of transitioning to retirement

• Reduce your work hours to ease into retirement by supplementing your part-time salary with a regular income from your CareSuper Transition to Retirement Pension, or
• Continue working full-time and increase your contributions to super (separate non-pension account) and, at the same time, draw a regular income from your CareSuper Transition to Retirement Pension account.

Unlike the CareSuper Pension, the CareSuper Transition to Retirement Pension can be purchased with both ‘preserved’ and ‘non-preserved’ monies, provided you are over 55 years of age and reached your preservation age. The minimum amount to commence a Transition to Retirement Pension is also $10,000.

A CareSuper Transition to Retirement Pension gives you the option of drawing down a regular income while you are still working. However, you cannot make lump sum withdrawals until you have satisfied a condition of release.

How much can I receive as pension income?

You can choose how much pension you receive each year, subject to a legislated minimum amount which is calculated by using the balance of your Pension account at a specific date each year divided by a percentage factor based on your age. In addition to this minimum requirement, the Transition to Retirement Pension also has a maximum limit. The maximum level is 10% of your account balance on commencement and on 1 July of each year thereafter. Once you have retired or turned 65 all maximum restrictions will be removed.

CareSuper recommends that before you make a decision on how to invest or deal with your retirement benefit you should seek independent advice from a qualified financial adviser.