Here’s a summary of the different retirement options that you can consider.
| Options |
Benefits |
Things to Consider |
| Transition to Retirement (TTR) Pension |
- You can reduce your work hours and use a TTR Pension to supplement your income.
- You may be able to reduce the amount of tax you pay by combining a TTR Pension with making additional deductable contributions back into your super account.
|
- You cannot add additional funds to a TTR Pension account after it has commenced.
- There is no insurance connected to a TTR Pension account.
- Before age 60, any taxable component of your TTR Pension payments will be included in your taxable income and will be taxed at your marginal tax rate, less 15%.
|
| Account-Based Pension |
- Christian Super can continue to invest your retirement savings so that you don’t have to manage your own investment portfolio in retirement.
- At Christian Super, you do not pay tax on investment earnings.
- Can be tax effective way to continue to receive an income once you retire.
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- 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.
- There is no insurance connected to a TTR Pension account.
|
| Lump Sum Withdrawal |
- Flexibility – you can choose when and how much to withdraw as a lump sum.
- You can combine a lump sum withdrawal and an Account-Based Pension.
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- There may be tax implications.
- This may affect your eligibility for the Government Age Pension.
- If you transfer the money to a bank account, bank interest rates are generally lower than the investment returns from a super fund.
- If you change your mind, you may not be able to re-deposit funds back into a super fund.
|
| Government Age Pension |
- A fortnightly Government payment designed to provide income support to older Australians who need to supplement their personal retirement savings.
- If you are not eligible to receive a full or part Age Pension when you reach Age Pension age, you may qualify at a later stage if your income or assets decrease.
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- You need to be under the certain income test and asset test limits to be eligible.
- You also need to reach the Age Pension Age (currently 66 years, but will increase to 67 years on 1 July 2023) to be eligible, as well as some other requirements.
- The way you access your superannuation may affect your ability for the Government Age Pension.
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If you have any questions please contact our Member Care Team – we’re here to help.
Useful Links
Open a Christian Super Pension account
