Income streams can be a convenient, flexible and tax-effective way to receive regular payments, but there are a few myths that might make them seem more complicated than they really are. Let’s bust six common misconceptions and help you feel more confident about your options. 

Myth 1: I’ll lose control of my money

Busted: Income streams aren’t a one-way street. With our income streams your money stays invested, and you can choose how much income to draw (within government limits). You can adjust your payments at any time and you can make lump sum withdrawals too. It’s your money, and you’re still in control. 

Prefer a more hands-off approach? With our Managed Income option, our experts will set your payments and manage your investments, targeting regular income to age 90.¹ You can still make lump sum withdrawals too although we’ll then adjust your regular payments. Managed Income is ideal if you want simplicity and certainty and have the decision making done for you. 
_{¹ It’s not guaranteed your savings will last until age 90.} 

Myth 2: I’ll be locked in forever

Busted: You’re not stuck. With our income streams you can adjust your payments, stop your income stream, or move your money back into your accumulation account. Flexibility is built in, so you can adapt as life evolves. 

Myth 3: Income streams don’t earn investment returns

Busted: Your super doesn’t stop working when you retire. With our income streams, your balance stays invested, and you can choose an investment option that suits your goals and risk appetite. That means your money can keep growing, even while you’re drawing an income. 

Myth 4: It’s too complicated to set up 

Busted: Setting up an income stream is easier than you might think. We offer support to guide you through the process, and you can even get advice tailored to your situation. Once it’s set up, payments are automatic, like a regular pay day in retirement. 

Myth 5: I’ll run out of money too quickly

Busted: Income streams are designed to help your super last. You can choose how much to withdraw, and tools like our retirement lifestyle calculator can help you plan ahead. Plus, combining your income stream with the Age Pension (if eligible) or other savings could help stretch your retirement income further. 

Myth 6: I’ll pay more tax if I open one

Busted: Income streams can be more tax-effective than keeping your money in your super account.  For most over 60 income stream payments are tax-free.  And any investment returns are tax-free too.  This means income streams investment returns may be slightly higher than your accumulation super account.   

Want to learn more?

Choosing your retirement income option is a personal journey and we're here to guide you. Whether you're just starting to explore or ready to take the next step, our super experts are here to help. Give us a call on 1800 005 166 or book a call back at a time that suits you. We’ll walk you through the options and help you feel confident about what could work best for your lifestyle. 

^{_{This is general information only and doesn’t take into account your objectives, financial situation or needs. Before making a decision about CareSuper, you should consider if this information is right for you. You may also wish to consult a licensed financial adviser. 
Consider the PDS and TMD at caresuper.com.au/pds. Issued by CareSuper Pty Ltd (Trustee) (ABN 14 008 650 628, AFSL 238718). CareSuper (Fund) (ABN 74 559 365 913). Any advice is provided by CareSuper Advice Pty Ltd (ABN 78 102 167 877, AFSL 284443).}}