Replace your income
If you've stopped working
Top up your income
From working, the Age Pension or other income streams
Zero tax on investment earnings and income payments
Benefits and features of a Retirement income account
- Zero tax on your income payments if you're over age 60
- Flexibility to set your payment amount and frequency1
- Stop your payments and close your income account at any time2
- 18 investment options managed by our investment experts
- Zero tax on investment earnings
- Make extra withdrawals at any time
- Receive a retirement bonus of up to $5,100 just for opening an account3
Risks and superannuation
It is important to be aware of the risks of investing in superannuation which are described in the Super Savings Product Disclosure Statement.
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Find out more about our Super Savings Retirement income account
What is a Retirement income account?
Also known as an account-based pension, a Retirement income account provides you with a regular income in retirement.
Once eligible, you start by moving your super from your super accumulation account (such as an Australian Retirement Trust Accumulation account) to a Retirement income account, which will then provide you with regular payments into your bank account. You also have the ability to take out lump sum withdrawals.
Who is the Retirement income account for?
We’ve specifically designed our Retirement income account for members who:
- Have reached their preservation age and retired, or
- Have turned age 65 regardless of whether they’ve retired
How does it work?
Any regular income payments or lump sum withdrawals are tax free if you’re age 60 or over. You have the flexibility to choose how much income you receive and how often you receive it, provided the total each year meets the minimum amount set by the government. Your funds will continue to be invested as well so it’s still working for you even in retirement.
What is my preservation age?
The government “preserves” your super by restricting when you can access your money. This means any money you invest in super stays in super, until you at least reach your “preservation age”. Your preservation age depends on your date of birth:
| When were you born? | Preservation age |
|---|---|
| Before 1 July 1960 | 55 |
| 1 July 1960 - 30 June 1961 | 56 |
| 1 July 1961 - 30 June 1962 | 57 |
| 1 July 1962 - 30 June 1963 | 58 |
| 1 July 1963 - 30 June 1964 | 59 |
| After 30 June 1964 | 60 |
Why should I consider a Retirement income account?
Many people think they need to withdraw all their super as a lump sum when they retire. You don't! In fact, you may be better off leaving your money invested so it will continue to receive investment earnings.
What if I'm not quite there yet?
If you're less than 65 years of age and not ready for retirement just yet but would like to start working less, once you’ve reached your preservation age, an Australian Retirement Trust Transition to retirement income account can allow you to supplement your income with regular payments from your super savings while you transition to full retirement.
What income payments do I need to take?
As a result of the COVID-19 crisis, the government has reduced the minimum annual payment amounts for superannuation pensions like Australian Retirement Trust’s Retirement income account. This is intended to help retirees, and those close to retirement, to manage the impact of volatile financial markets on their retirement savings.
You'll be able to choose how much income to take and when you wish to take it, provided a minimum amount set by the government is withdrawn each year. You can withdraw as much as you like above the minimum.
| Your age | Standard percentage factors | Reduced percentage factors applicable for 2019-20, 2020-21 and 2021-22 |
|---|---|---|
| Less than 65 | 4% | 2% |
| 65-74 | 5% | 2.5% |
| 75-79 | 6% | 3% |
| 80-84 | 7% | 3.5% |
| 85-89 | 9% | 4.5% |
| 90-94 | 11% | 5.5% |
| 95 or older | 14% | 7% |
How will my balance be invested?
Choosing the right investment option for your Retirement income account can make a big difference to your retirement income.
What fees will I pay?
In 2019-20, we halved the administration fee for our Retirement income account to just $1.50 per week. You’ll also pay 0.10% p.a. of your balance (up to the first $800,000). There is no fee for regular payments from your account. Investment fees and costs also apply depending on which investment options are chosen.
Is there a cap on the amount I can have in the account?
You will have a personal transfer cap up to $1.7 million on the total amount you can have in one or more superannuation retirement pensions like Australian Retirement Trust’s Retirement income account. You can find out your personal transfer cap by contacting the ATO or logging MyGov. Note that setting up a Retirement income account may affect your eligibility for social security benefits so it’s important you check with your social security provider (e.g. Services Australia) or seek financial advice before making any decisions.
Will I still get the government Age Pension?
To receive the government age pension, you need to reach the age pension age (currently 66) and have income and assets below certain thresholds. Your super accounts (whether a Accumulation account or Retirement income Account) will count towards both the age pension income and assets tests.
Seeking financial advice on your personal situation can help you work out if you’ll still be eligible for full or part of the government age pension once you activate your Retirement income account.
Will I get a Retirement Bonus?
When you activate your Retirement income account, you may also be eligible for a Retirement Bonus of up to $5,1003. The more money you transfer to the income account, the higher the one-off Retirement Bonus.
How do I get started?
Our team of expert financial advisers can answer any questions about our accounts at no additional cost. Request a callback today.
If you're eligible, and when you are ready, you can activate your Retirement income account through Member Online or complete the Income account request form.
What if I haven't stopped working?
If you are working, either part or full time, you could be eligible to open a Transition to retirement income account. Find out more about our Transition to retirement income account.
Can I access lump sums for larger purchases like renovations or travel?
While a Retirement income account provides a regular flow of income, you are still able to take lump sum withdrawal via Member Online anytime.
Talk to your financial adviser or contact Australian Retirement Trust
Outstanding value pension fund offering
Australian Retirement Trust has adopted the same products, services and investments as Sunsuper. Sunsuper proudly held Canstar’s highest 5-Stars Outstanding Value Account Based Pension rating since 2015. Sunsuper was also a finalist for SuperRatings' Pension of the Year 2021, and Sunsuper’s Income accounts received the highest possible ratings from SuperRatings, Chant West and The Heron Partnership.4
1. The Government has set a minimum amount to be withdrawn each year. You must have at least taken your minimum income for the financial year before you can stop your payments and close your account. Members aged 64 or less who open a Transition to retirement income account can withdraw a maximum of 10% each year.
2. Stop your income payments and close your account at any time, subject to having already received the minimum legislated income payments.
3. Subject to eligibility criteria, including a 12 month minimum membership period. The Retirement Bonus is generally paid into eligible Super Savings Retirement income accounts in the July following the financial year in which the Super Savings Retirement income account was established. Please note other conditions apply. Visit the Retirement Bonus page for more details.
4. SuperRatings - The rating is issued by SuperRatings Pty Ltd ABN 95 100 192 283 AFSL 311880 (SuperRatings). Ratings are general advice only and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and SuperRatings assumes no obligation to update. SuperRatings uses objective criteria and receives a fee for publishing awards. Visit superratings.com.au for ratings information and to access the full report. © 2021 SuperRatings. All rights reserved.
Chant West - For further information about the methodology used by Chant West, see www.chantwest.com.au.
For ratings and awards information, visit our Ratings & awards page.