Notice:
The Government announced on 30 June 2010 that they will continue to support self-funded retirees by extending the drawdown relief currently provided for account-based superannuation pensions to the 2010/11 financial year. As in the past two years, the drawdown relief will be in the form of a 50% reduction in the minimum payment amounts for account-based, allocated and market linked pensions. The Government has advised that it will make the necessary adjustments to the related Legislation in the new Financial Year.
Please see Pension MemberOnline if you would like information on how to change your pension payment amount. If you have any questions regarding this matter please contact our CareSuper PensionLine on 1300 664 781 or email pension@caresuper.com.au.
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.
To find out more about minimum and maximum pension amounts follow this link to the ATO site.
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.
