Account-Based Pension

An Account-Based Pension allows you to draw an income from your retirement savings, once you have met a condition of release. While a condition of release is usually based on your age and sometimes your work status, there are other instances where you may be eligible for this type of pension (e.g. if you are totally and permanently disabled).

What Are The Benefits?

  • Christian Super can continue to invest your retirement savings so that you don’t have to manage your own investment portfolio in retirement. There are seven different investment options to choose from, and you can split your savings between more than one option if you wish.
  • At Christian Super, you do not pay tax on the investment earnings of your Account-Based Pension.
  • An Account-Based Pensions can be tax effective way to continue to receive an income once you retire. 

How Does It Work?

  • You need a minimum of $20,000 to start an Account-Based Pension. You can set up an account by transferring money from any superannuation accounts that you have (including your Christian Super account) and you may also be able to transfer amounts from your personal savings (subject to certain conditions – please refer to our Pension Guide for further details).
  • An Account-Based Pension is generally taken as an income stream, however lump sum withdrawals are permitted at any time. You can choose to receive this type of pension twice a month, monthly, quarterly, half yearly or yearly.
  • You must withdraw a minimum percentage of your account balance each year, which varies depending on your age. Further details are available here.

Important Things to Consider

  • The amount that you can hold in a Pension account has been capped at $1.7 million. Any assets in excess of this cap will be transferred back to an appropriate accumulation product.
  • You cannot add additional funds to an Account-Based Pension account after it has commenced.
  • Payments will continue only as long as there is money left in your pension account – it is not a guaranteed income stream for life.
  • Death, Total and Permanent Disablement (TPD), or Income Protection insurance is not available with an Account-Based Pension account.

Where to Find Further Information

  • Our Pension Guide contains further details about Account-Based Pensions, including information about investment returns and fees for each investment option.
  • If you are considering an Account-Based Pension, please contact us to discuss the type of financial advice that you may need.

If you have any questions please contact our Member Care Team – we’re here to help.


Useful Links

Open a Christian Super Pension account